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20 Sep 2024

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Brazil's Big Digital Economy Must Cross Large Digital Divide

The primary socioeconomic issue when considering Brazil and its continued development of its Digital Economy is the well-known and significant income gap among its regions. As a whole, Brazil's per-capita nominal income stands at US$10,413, according to the International Money Fund (IMF).

Yet there is a wide gap among regions. Compared to the national average, regions vary as follows:

* São Paulo State – 49.6% higher than the national average

* Rio de Janeiro State – 26.4% higher

* Central-West and South regions – 22.8% higher

* Minas Gerais & Espirito Santo States – 12.3% lower

* North and Northeast regions – 43.2% lower

The income gap between São Paulo State on the one hand and the North and Northeast regions on the other amounts to 62% lower income in the north – São Paulo residents enjoy income levels more than 2.5 times higher than those in the north.

Brazil's Place in IDCA's Country Rankings
Brazil is among the nations surveyed in the IDCA Digital Readiness Index, which measures how relatively well the nation of the world are performing with respect to each other across four general areas: Economy (which includes technology development), Environment (which includes the use of sustainable energy and GHG emissions level), Social and Governance.

Brazil has the world's 7th largest population, and its outlook is optimistic when compared to the world's other large countries. In fact, among the world's most populous 10 nations, Top 10 Brazil trails only the United States in its IDCA ranking.

In Latin America, although populations vary widely, Brazil can be contrasted with two of its neighbors who are also rapidly developing their digital infrastructure and working toward creating their own paths to Digital Economies:


Brazil's aggressive development of its local hydroelectric resources, coupled with consistent efforts to develop wind and solar energy have established it as an example of sustainable energy to the world, and as the world leader among large countries.

As a result, Brazil's strong industrial base operates relatively efficiently, generating CO2 and other greenhouse gases at a rate as efficiently as Germany, more efficiently than Canada, and slightly less efficiently than the United States. I

Brazil is in statistical parity with the world in its tech-related economic score. For a nation of its size and ambition, it thus needs to do better. Internet access could be improved, and its mobile access is in the middle of the pack within the region. Brazil's server infrastructure is significantly stronger than most of Latin America, but could also benefit from significant development.

Brazil's Digital Economy
Given the data cited above, a strong case can be made for Brazil to not only focus on its relatively wealthy São Paulo and Rio de Janeiro regions, but to commit o develop the North and Northeast Regions, too. This is not a trivial task, as the responsibility of caring for 60% of the Amazon basin falls within Brazil's Amazônia Legal in its East, Northeast, and Central-West regions. This responsibility also lies within the context of a population drain from less-developed parts to more-developed areas of Brazil, eroding local economic development while straining the resources of São Paulo and other developed regions.

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