Informal Economy Budget Analysis in Brazil and Belo Horizonte

This paper provides an analysis of government budgets related to specific groups of informal workers in Belo Horizonte, the capital of the state of Minas Gerais in Brazil and determines that local public policy can benefit informal workers, but mostly does so indirectly. It provides background on the informal sector in Brazil, and examines the problems that informal economy workers face. It then analyzes national, state and city budgets for several relevant departments.

The municipal partnership involving waste pickers that has resulted in direct budgetary support to this group of workers, who have received the most direct government attention, is examined. More indirect allocations that have impacted street vendors and informal vendors in other locations are also considered.

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