Brazil has a wealth inequality problem because starting a business here is extremely hard. These are problems that Bolsonaro's finance minister has been tackling very hard. Similarly, because of the way the federation is set up it makes things really inefficient. For instance, many cities have to overspend the amount of money they get on education even though they need way more money for general healthcare, but the mayors of those cities can't reallocate those sums of money or they can go to jail for fiscal irresponsibility. This is an outdated system that was set up 30 years ago and never changed again, which effectively makes it impossible for politicians to enact effective change when it comes to something as simple as how they should allocate the money they receive from the union. Similar unhelpful setups run across our entire country which makes it so that it's an extremely costly place to do anything productive in which exacerbates inequality.