The quote highlights a specific approach to economic policy aimed at integrating lower-income individuals into the broader economy through targeted government initiatives. This strategy involves minimal structural changes but focuses on directly including the poor within budgetary frameworks, thereby stimulating economic activity and creating a cycle of growth.
At its core, the statement suggests that by incorporating low-income groups into mainstream economic activities, such as increasing their purchasing power, governments can drive consumer demand. As more people spend money in the economy, tax revenues rise, attracting further investment. This increased investment then leads to more opportunities and benefits for everyone involved, fostering a positive feedback loop that sustains economic development without necessitating radical reforms.
The quote is attributed to Fernando Haddad, who served as Brazil’s Minister of Cities under President Luiz Inácio Lula da Silva and later became the Mayor of São Paulo. As both an academic and politician, Haddad has been deeply involved in developing policies aimed at social inclusion and economic growth. His perspective on government projects reflects his understanding of the interplay between public finance, poverty reduction, and sustainable economic development.