The two regions also differ greatly in their level of development. Southern Brazil has modern agriculture, is heavily industrialized, and has higher and more evenly distributed incomes. The northeast had many poorly paid subsistence farmer; incomes are generally lower and are unevenly distributed. This difference affects the ability of people in the two regions to adapt to climatic stress.

Extreme Rainfall and Excessive Drought
conditions are what took place in Brazil.

In 1983, about 88% of the northeast region - including 14 million people - was affected by drought.  The drought caused a 16% decrease in agricultural production and many subsistence farmer lost all their production.  Some food prices increased by 300%, agricultural unemployment soared, and the government had to give drought assistance to some 2.8 million people.

During the same year, in southern Brazil, rainfall increased by 70-100%. The area experienced the worst flooding of the century, with destruction of buildings, transport and communications networks. Scores of people died, and several hundred thousand were made homeless.

In the southern province of Santa Caterina alone, crop losses were estimated at $924 million. Loses of livestock amounted to 800 000 poultry, a6500 swine and 43 000 cattle. Water is estimated to have removed about 25 million tons of fertile topsoil. Despite these huge losses, and a drop in per capital income, the generally high level of income in the area enabled the population to subsist independently, in contrast to the north-east region.