The number of Latin people in poverty and extreme poverty rose again last year, according to a recent report published by the Economic Commission for Latin America and the Caribbean (ECLAC).
In 2014, 28.5% of the population of the region was living in poverty (168 million people), a percentage that increased to 29.8% in 2015 (178 million) and 30.7% in 2016 (186 million); while extreme poverty went from 8.2% in 2014 (48 million people) to 10% in 2016 (61 million).
However, if we analyze a longer period of time (from 2002 to 2016), poverty was reduced by 12.2 percentage points. Another good indicator is that income inequality also declined in the same period, although the pace of the decline has decreased in recent years.
In addition, the Gini coefficient (in which 0 represents absence of inequality and 1 maximum inequality) went from 0,538 in 2002 to 0,467 in 2016.
Recent experience indicates that the increase in income in low-income households has been essential for the reduction of both poverty and income inequality. The distribution and redistributive policies of the countries have contributed decisively to this growth, such as tax reforms, minimum wages, pensions and transfers linked to poverty reduction strategies and the expansion of social protection systems,”
said Alicia Bárcena, Executive Secretary of ECLAC.