The impact of inequality in Latin America

This paper argues that development policies in Latin America (and in other developing regions) should focus not only on eliminating poverty and deprivation but also on preventing and reducing economic, social and political inequalities. It suggests that reducing economic, social and political inequalities can be achieved through sound programmes of redistribution of incomes, assets and wealth, as well as social and political rights.

The paper broadly covers:

• an examination of the multidimensional aspects of inequality
• an analysis of the extent of inequality in Latin America across various dimensions (rural/urban, regional and across different population groups) and various types - economic (income, employment and land), social (health, education and social security) and political (access to power and legal institutions).
• a discussion around the impact of inequality in development
• what can be done by governments, the civil society and the international community to reduce inequalities in Latin America and elsewhere.

Recommended approaches include for international agencies include:

• the provision of technical advice and support to individual governments in the design of the following policies:
  • progressive tax systems where there are serious budget constraints
  • counteracting the power of elites and antagonism towards the redistribution of income, assets, wealth and social and political rights.
  • reducing corruption in administering various fiscal systems
  • enhancing equity among all social groups by establishing universal secondary education, efficiency in administering public health systems and better targeting systems distributing social benefits.
  [adapted from author]