Poverty and Inequality

While substantial progress has been made in Latin American and the Caribbean to strengthen democratic processes, liberalize the economy, implement responsible macroeconomic policies, and expand basic social services, much is yet to be done to significantly reduce the incidence and depth of poverty. Although the proportion of poor has been falling in the last decade, their absolute number has risen to 180-200 million. Progress in poverty reduction has been hindered by the economic crises experienced by the region as well as by increases in wage and income inequality in many countries as a result of the processes of trade liberalization, and in particular, skill-biased technical change. Also, partly responsible was the lack of a sufficiently fast improvement in the distribution of education and other productive assets.

Continued research on poverty and inequality in the region is critical for the development of an effective policy agenda to deepen the impact of policies on poverty reduction and to reverse the income inequality trends of recent years. Such an agenda should go beyond social sector policies and recognize the key contributions of macroeconomic and productive sectors? policies on poverty reduction.

The Network on Inequality and Poverty

The Network on Inequality and Poverty of the Latin American Economic Association (LACEA, IADB and World Bank) established to advance the state of knowledge and expertise regarding the causes and consequences of poverty, inequality, and social exclusion in the region, as well as policies, institutions, and social structures that influence their dynamics. The network fosters academic research and seeks to strengthen research capabilities in the region, especially in countries with less-developed capacities by linking regional researchers with world-class researchers. The network has an Advisory Board, an Executive Committee, and National Chapters involving research institutes in eight countries in the region. National chapters serve as links of the network to researchers in their countries and regularly hold national meetings and other activities.

The network holds meetings each year in which prominent scholars present research findings on various poverty and inequality topics. For other specific information or to be included in the network?s mailing list please contact the Network Secretary Denise Uderman (denise@econ.puc-rio.br).

Last updated: 04/26/07