Discuss the relationship between poverty and inequality in latin

discuss the relationship between poverty and inequality in latin

Key words: inequality, poverty, health, education, Latin America. I. Introduction. The discussion of inequality stirs greater passion in Latin America than anywhere else in the world. nutrition, literacy, and freedom of association. Income and. Relationships between Poverty, Inequality and Growth indirectly through growth by discussing links (B) and (C). Links between Inequality and Poverty. short periods of time - for example, in sub-Saharan African; in Latin. America. relationship between income distribution and economic growth has taken In this chapter I first examine long-run trends in inequality in modern. Latin America .

Half-asleep, Che raised his hand, to which Castro replied with surprise: And the rest is history.

discuss the relationship between poverty and inequality in latin

To Che, inequality was inefficient. So it is appropriate that it was in Cuba earlier this year that the Economic Commission for Latin America and the Caribbean ECLAC launched its most radical statement on equality yet that gives it a position of leadership on this issue.

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Concentrating capital in the hands of a few maximises their capacity to invest, while correcting inequality reduces the incentive for individual effort. Its economists demonstrate that between and inequality had an adverse effect on productivity growth across Latin America and the Caribbean. Similarly, the ECLAC economists point to the damage to productivity caused by inequality in healthcare: In Latin America, it has been estimated that between and annual changes in life expectancy contributed 1.

discuss the relationship between poverty and inequality in latin

Income inequality is closely associated with informality in the labour market — a problem that plagues Latin America, where million informal workers eke out a living. This informality is a fiscal headache, reducing tax takes and generating huge costs to treasuries to support people lacking access to contributory pensions.

The poverty of inequality in Latin America | Public Finance

Gender inequality also stunts growth. The average rate of rural indigence exceeds 2,8 times the urban rate, although the gap varies notably from one country to another.

discuss the relationship between poverty and inequality in latin

The rate of poverty among indigenous or Afro-descendent groups may range between 1,2 and 6,8 times that of the rest of the population ECLAC, Food security It is estimated that 7,5 million children under five years of age are small for their age and four million are underweight.

The children of indigenous and Afro-descendant mothers who have little schooling and who live in rural or marginal urban areas of Andean and Central American countries are the most vulnerable ECLAC, Strategies to combat poverty in Latin America Many countries in Latin America have responded to high levels of poverty by implementing new, or altering old, social assistance programs such as conditional cash transfers.

These programs provide money to poor families under the condition that those transfers are used as an investment on their children's human capital, such as regular school attendance and basic preventive health care. The purpose of these programs is to address the inter-generational transmission of poverty and to foster social inclusion by explicitly targeting the poor, focusing on children, delivering transfers to women, and changing social accountability relationships between beneficiaries, service providers and governments UNDP, Inequality in Latin America With an average gini coefficient of 52, Latin America stands out as one of the two most unequal regions of the world presenting lower results than regions with more dramatic poverty levels such as Africa and parts of Asia Ferranti et al.

There are good economic reasons for policy makers to be concerned with inequality: Countries with higher inequality and poverty levels tend to grow less.

Trade, Economic Growth and Inequality

Individuals in highly unequal societies will have incentives to engage in activities outside legal markets, such as crime and violence. Gini index in Latin America The most commonly used measure of inequality is the gini coefficient.

The Gini index takes into account the percentages of total income against the number of re-cipients and expressed the difference between poorest and richest. The following figure present data about the trends and income inequality in LAC from to in 7 LA countries.

Regional situation of inequality in Latin America The average gini coefficient in Latin America hides significant regional variation.

There are countries like Bolivia, Haiti or Jamaica with gini coefficients around 55 to By any standard these levels of income inequality are extremely high. The value of biodiversity and its associated ecosystem services are getting growing recognition In LA.