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One year before Lula took office, the regions of he South and the Southeast were by themselves responsible for 73.6% of Brazil’s GDP, in other words almost ¾ of the wealth and goods in services produced and consumed in the country. The last time that the IBGE made the calculation, the rate of concentration was still high, it’s true, but the numbers confirmed a trend towards the reduction of the enormous economic gap between the two regions of the country: all told, the North, Northeast and the Center-West were responsible for almost 30% of Brazil’s GDP in 2011.
The share of the North region in HGDP increased from 4.7% in 2002 to 5.4% in 2011. The Center-West increased from 8.8% to (.6%. The Northeast was up from 13% to 13.4%. And in this same period the share of the South and the Southwest declined from 56.7% to 55.4% and 16.9% to 16.2%, respectively.
The increase in formal employment, micro and small enterprises generated by easy access to credit and cash transfer programs were crucial for helping Brazil to become a more egalitarian country during the Lula and Dilma governments. If GDP is the sum of all the wealth generated by the country or particular region, household (family) income gives a closer idea of how the life of the Brazilian citizen really improved.
Northeastern and Center-West inhabitants were those who realized the biggest increase in their incomes. From 2001 to 2011, the improvement was 2.9% per year, which means 65% more than the national average. Considering only the income generated by wage or small business profits, those who gained most were, again, those who needed it in the Northeast, North and Center-West.
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Recife, Fortaleza and Salvador are among the Brazilian cities that will receive funds from the Urban Mobility Pact for expansion and improvement of public transportation in major cities, with the construction of LRTs (Light Rail Vehicles), BRTs (Bus Corridors) and expansion of subways. Together, the three northeastern capitals will receive nearly R$ 20 billion in funds from the federal government for urban mobility projects, investments that will generate more jobs and income in these cities.
"I only discovered how important regional development was for this country when I took my caravan trips in 91, 92, 93 and 94. Then I started noticing that the Brazil of my São Bernardo had nothing to do with the Brazil of my Garanhuns…. If you don’t step in the mud, you don’t know anything about it, and that's why you’ll never govern to benefit of all of Brazil... Then you take the North and the Northeast, and see that they almost were not on the map of Brazil, from the standpoint of government initiatives. Beyond that, we spent 20 years retrenching to pay our debts. State governments had no capacity to invest, municipal governments had no capacity to invest."
"This is a very important acknowledgement because it comprises the core of the project I presented in these elections, which was a project of development with social inclusion. A project I thought about, I lived with and was determined would change the regional and social inequalities in Brazil. Therefore, the Northeast was and remains our big commitment. Because it represents the redemption of a portion of Brazil, its people and the entire region."