Income Disparities in Latin America

Paper Summary:

This paper states that, although inequality and high levels of income disparity represent major challenges confronting economists and leaders in many parts of the world, the problem is particularly severe in the Latin American countries. The author believes that the root of this phenomenon lies in the region's colonial history and the exploitation of the indigenous population as slave labor for agriculture and tapping the mines. The paper concludes that these stubborn patterns of inequality can be overcome if determined efforts are made to open political and social policies to all and to provide access by the poorer sections to social services. Footnotes.

Table of Contents
Income Disparities in Latin America
Measuring Inequality: Some Recent Studies
Latin America: How Unequal?
Income Disparity in Latin America: Getting Worse?
Is Poverty and Income Disparity Related?
Historical Roots of Inequality in Latin America
Comparison with Colonization of North America
Persisting Patterns of Inequality
Social, Economic and Political Changes in the 20th Century
Roles of Race, Ethnicity and Gender in Income Disparities
Racial Identification
Ethnic Identification
Identity Formation and Discrimination
Assets of Households
Access to Services
Average Incomes
What do the Race and Gender-Related Income Statistics Mean?
The Consequences of Inequality
Considered Unfair
Results in Greater Poverty
Affects Economic Growth
Current Backlash
Solutions for Reducing the Inequality in Latin America
More Open Political and Social Institutions
More Equitable Economic Institutions and Policies
Conclusion

From the Paper:

"Poverty and income disparity are not the same concepts. Poverty may decline in a country or region where income disparity is increasing. However, experience has shown that such a situation occurs rarely and inequality and poverty are closely related. This is because in a growing economy with stable levels of inequality, poverty invariably falls. As a result the Latin American region showed significant reduction in poverty levels in the 1970s, when its economies were growing with a corresponding drop in inequality. On the other hand, the 1980s saw a fall in incomes and more unequal income distribution resulting in accelerated increase in poverty."

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