Chapter 2 The state of Ceara: the problem and its roots

Abstract

The State of Ceara, located in Northeastern Brazil, is one of the poorest states, with a population of about eight million inhabitants. Its gross domestic product (GDP) per capita is less than half that of Brazil as a whole: it reached R$2,666 in 1998 (equal to about US$1,400), compared with R$5,560 in Brazil as a whole (equal to about US$2,900). However, the economic policy in the last decade has led to a rapid growth in the economy of Ceara in comparison with national economy. In real terms, the GDP of Brazil has grown by 34% from 1985 to 1998, while the GDP of Ceara has grown during this same period by 58%. Preliminary data for 1999 indicate an additional growth close to 3% and a growth of 5.8% in the first 6 months of 2000 (as compared with the first 6 months of 1999). This is a much higher growth than that of the whole of Brazil, which reached 3.8% in the same period. This has led to a considerable increase of this state's share in the national GDP, from 1.5% in 1990 to 2.1% in 1998, with a continuing trend till 2000. In terms of GDP per capita, the gap between Ceara and Brazil as a whole is still very large, although it decreased considerably during this period: the GDP per capita in Ceara was only 35% of Brazilian GDP per capita in 1990, and it grew to 48% in 1998.

Citation

Bar-El, R. (2008), "Chapter 2 The state of Ceara: the problem and its roots", Bar-El, R. (Ed.) Regional Development and Conflict Management: A Case for Brazil (Contributions to Conflict Management, Peace Economics and Development, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 17-37. https://doi.org/10.1016/S1572-8323(08)08002-8