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Perhaps the most important social indicator is the extent of extreme poverty among a country's people. Poverty has been high in Brazil for an upper middle- income country. There has been progress, a World Bank study found that Brazil's average per capita income grew by 220% in the high-growth years from 1960 to 1980, with a 34% decline in the share of the poor in the population.

Question 1

With regards to the above, explain why inequality in Brazil has started to fall in the last few years

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