Is There a Regional Problem in Brazil?

Brazil is one of the countries with the most serious regional economic disparities in the world. Nevertheless, it is known that the simple existence of regional disparities does not imply that there is a regional problem in the country. The paper stresses this difference through a simple set analysis. Afterwards, some empirical tests to the hypothesis that there is a regional problem are presented and they do not give clear support to such idea. Furthermore, such empirical approach suggests that most of the disparities arise from unbalanced distribution of human resources. This demands public policies to avoid such regional inequalities which are quite different from those which have prevailed in the last forty years. Therefore, a major shift in the underlining ideas of regional policies in Brazil is suggested. The paper points for the need of further research on this subject to define the most efficient policy framework to face Brazilian regional disparities.