The Selecao legend believes that the competition could turn Felip Scolari's young side into a top international outfit - with Neymar leading from the frontDunga has claimed that the upcoming Confederations Cup could prove vital to Brazil's hopes of winning the 2014 World Cup on home soil next year.
The former Selecao coach believes that the current generation are still in a developmental phase and that facing stern challenges against strong sides this month, including Japan, Mexico and Italy, is exactly what is required to take the hosts to the next level.
"The team [Brazil] is in a stage of maturation, and, not having to play qualifiers [for the World Cup], needs to play matches with 'real' opponents who present a challenge," Dunga said, according to Corsport.
The 49-year-old also asserted that Brazil's World Cup and Confederation Cup hopes rest largely on Neymar, and was quick to praise his countryman - but recognised that he can't win tournaments for Brazil single-handedly.
"Technically, [Neymar] has fantastic shots. Certainly in Brazil he has started many changes. [However], one boy cannot solve all of the Selecao's problems. He can be a leader, but he needs a team around him."
Dunga recognised that the prodigious talent could initially struggle at Barcelona but said that he has little doubt that he will succeed.
"There is some risk," the former midfield ace mused. "But I'm sure that Neymar will do just fine. Because here in Brazil, the whole opposing team tried to block him to stop [Santos], whereas in Barcelona there is Messi, Iniesta, Xavi ....
"He will be less of a God [to the fans] but will have more freedom. He will play at Camp Nou as he would on the beach: trying to have fun."
Dunga skippered Brazil to World Cup glory in the United States in 1994.