Nobel Prize winner in economics sees Brazil as "trapped" by a weak society and state.

“Corruption has affected trust in democracy”

James A. Robinson, winner of the Nobel Prize in Economics in 2024, highlighted in an interview with Estadão in 2022 that Brazil is "trapped by a weak society and state". A professor at the University of Chicago, Robinson suggested that the country should prioritize transparency and combating clientelism to strengthen the state. “If you make several small changes, you reach a point where things start to move”, he added.

In 2023, his colleague Daron Acemoglu, a professor at the Massachusetts Institute of Technology (MIT), told Veja magazine that income distribution programs, such as those created by President Lula in his first terms, are important, but reiterated that economic policies should go beyond simple income transfer, aiming to create more opportunities in the job market to reduce social inequalities.

Acemoglu also noted that corruption has undermined trust in Brazilian democracy, and that the most effective strategy for the country would be to invest in creating opportunities that integrate people with different levels of skills and knowledge into the job market.

My take: The Brazilian state faces challenges in terms of efficiency, which may limit its ability to promote rapid and significant changes in people’s lives. Those who place all their hopes in government may find it difficult to achieve prosperity. However, it is essential to recognize the importance of a balance between the role of government in guaranteeing opportunities and rights, and the individual responsibility to seek growth and success through one’s own efforts. Invest now, thinking about the future you.