This article examines the impact of a decade of neoliberal policies on poverty and income distribution in Brazil. It demonstrates that while trade and market reform contributed towards the attainment of price stability and accelerated capital inflows, little was achieved by way of reducing income inequality and poverty. The article concludes by outlining the policy options which might be adopted to tackle this critical problem.

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The paper analyses the "feedback effect" of Foreign Direct Investment (FDI) on

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