The decline in poverty in Latin America and the Caribbean has stalled, and extreme poverty, or indigence, has increased since 2012, according to a study by the UN Economic Commission for Latin America and the Caribbean (ECLAC).
The study suggests the region is experiencing challenges in sustaining progress made in reducing poverty and unemployment and in expanding these achievements, as the reduction of poverty and indigence and improvements in income distribution have slowed.
26 January 2015: The decline in poverty in Latin America and the Caribbean has stalled, and extreme poverty, or indigence, has increased since 2012, according to a study by the UN Economic Commission for Latin America and the Caribbean (ECLAC). The study suggests the region is experiencing challenges in sustaining progress made in reducing poverty and unemployment and in expanding these achievements, as the reduction of poverty and indigence and improvements in income distribution have slowed.
The report, titled ‘Social Panorama of Latin America 2014,’ examines social spending and analyzes youth and development, gender inequality in the labor market and urban residential segregation. It projects that the percentage of people in poverty will remain stable at just over 28%, which translates into an increase in absolute numbers to 167 million people. The number of extremely poor people increased by three million, from 11.3% in 2012 to 11.7% in 2013, and is expected to increase to 12% in 2014. In contrast to the regional trend, Chile, Colombia, El Salvador, Paraguay and Peru showed declines in poverty in 2013.
More efforts are needed to “strengthen social protection policies that reduce vulnerability in the face of economic cycles,” ECLAC Executive Secretary Alicia Bárcena said. She called for establishing solid foundations with the aim of fulfilling the commitments of the post-2015 development agenda.
The study analyzes poverty by income and by using a multi-dimensional measure that considers basic services, education, employment, housing, social protection and standard of living. Multi-dimensional poverty decreased between 2005 to 2012 in the region, according to the survey. Argentina, Brazil, Chile, Uruguay and Venezuela experienced the largest decreases in multi-dimensional poverty.
The report suggests that eliminating differences in men’s and women’s activity rates and income gaps in the labor market would contribute to declines in poverty and inequality levels. It recommends “active and forceful policies” to foster and encourage women’s participation in the labor market and improve its quality.
ECLAC reports that it has been outlining an agenda for development in Latin America and the Caribbean through a series of publications that address inequality. Within this context, the annual ‘Social Panorama of Latin America’ considers social gaps, the mechanisms that reproduce these gaps and options for closing them. [ECLAC Press Release] [Publication: Social Panorama of Latin America 2014] [Graphic on Poverty and Indigence]