EMERGENCY AID AS 'PUBLIC POLICY' TO ADDRESS POVERTY IN THE COVID-19 PANDEMIC: EVIDENCE FROM 2020 AND 2021

Abstract

The state of calamity imposed by the Covid-19 pandemic forced the Brazilian government to implement an income transfer program: Emergency Aid. This article assesses the effect of the AE on poor and extremely poor households, asking whether the program mitigated the vulnerabilities reinforced by the pandemic. To achieve this objective, a bibliographical survey and statistical analysis of the profile of beneficiaries were carried out (R software), based on data released by the National Household Sample Survey (PNAD-Covid) and by the Ministry of Citizenship. The data were compared to inflation for the period, information disclosed by the Institute of Applied Economic Research. The results point to the findings: (i) the highest concentration of Emergency Aid beneficiaries among women, black and brown people, young people and people with a low level of schooling; (ii) the poorest regions – North and Northeast – had more beneficiaries; (iii) the reduction of extreme poverty and inequality is directly related to the amount transferred by the government; and (iv) the Emergency Aid mitigated the impacts of inflation on the budget of the poorest families, but only covered the value of the basic basket in its first design (Apr to Aug/2020), when the amount transferred was higher.