Inequality in Latin America : Breaking with History?

With the exception of Sub-Saharan
Africa, Latin America and the Caribbean has been one of the
regions of the world with the greatest inequality. This
report explores why the region suffers from such persistent
inequality, identifies how it hampers development, and
suggests ways to achieve greater equity in the distribution
of wealth, incomes and opportunities. The study draws on
data from 20 countries based on household surveys covering
3.6 million people, and reviews extensive economic,
sociological and political science studies on inequality in
Latin America. To address the deep historical roots of
inequality in Latin America, and the powerful contemporary
economic, political and social mechanisms that sustain it,
Inequality in Latin America and the Caribbean outlines four
broad areas for action by governments and civil society
groups to break this destructive pattern: 1) Build more open
political and social institutions, that allow the poor and
historically subordinate groups to gain a greater share of
agency, voice and power in society. 2) Ensure that economic
institutions and policies seek greater equity, through sound
macroeconomic management and equitable, efficient crisis
resolution institutions, that avoid the large regressive
redistributions that occur during crises, and that allow for
saving in good times to enhance access by the poor to social
safety nets in bad times. 3) Increase access by the poor to
high-quality public services, especially education, health,
water and electricity, as well as access to farmland and the
rural services. Protect and enforce the property rights of
the urban poor. 4) Reform income transfer programs so that
they reach the poorest families.