November 14, 2012
Inequality is falling in Latin America as some 50 million people have risen to the middle class over the past 15 years according to a newly released World Bank report. The Guardian reports on the study, which notes that Latin America remains one of the most unequal parts of the world, “but a combination of favourable economic conditions and interventionist policies by left-leaning governments in Brazil and other countries has brought it more closely in line with international norms.” According to the World Bank report, 30 percent of the population is now part of the middle class, similar to the number who are considered poor. Meanwhile, 38 percent are classified as “vulnerable”, living just above the poverty line, but below middle class. Previous CEPR research has shown that, as the Guardian notes, left-leaning governments have performed especially well in reducing inequality. As CEPR’s researcher Juan Montecino has written, “there is a relationship between moving away from the Washington Consensus and reducing inequality.”
The wage gap between men and women in Latin America is decreasing according to a study by the Inter-American Development Bank, reports Univision. Despite obtaining more education than men, women in Latin America receive 17 percent less than their male counterparts, similar to the 18 percent gap in the United States. This is down from 22 percent in 1992. Chile and Brazil have the largest gaps, while Mexico and Central America have the lowest. Reporting on the World Bank study cited above, Inter-Press Service also notes how the increasing role of women in the economy has had a huge impact on the decrease in inequality and the rise of the middle class. Citing World Bank research, Stephanie Leutert, a research associate at the Council on Foreign Relations, writes “Latin American women have been responsible for 30 percent of the region’s extreme poverty reduction in the past decade, as a result of their increased workforce participation and higher earnings.” Adding, “the global economic downturn hit men’s incomes the hardest. In response, Latin American women picked up the slack, causing more than half of 2009’s poverty reduction.”
For the 21st year in a row, the United Nations General Assembly voted overwhelmingly to condemn the U.S. embargo of Cuba, reports the Associated Press. The United States was joined by Israel and Palau in voting against the measure, which was approved by a vote of 188-3. As the AFP notes, this was a record number of countries voting for the measure. Ian Williams, a senior analyst with Foreign Policy in Focus, comments, “The UN vote on the Cuba embargo reminds us yet again that U.S. foreign policy is concocted in a bubble detached from the real world, where most nations recognize that the boycott is designed to pander to the most reactionary Cuban emigres in Florida. Even dissidents in Cuba think that it is counterproductive, giving the Cuban government an excuse for its inefficiencies, while, like most such sanctions, harming more the population than those in power. Obama, embarking on a second term, and winning Florida despite the Cuban vote, owes them nothing. He should use his influence to call off the embargo and allow free travel to and from Cuba.”
Ecuador’s Rafael Correa announced his decision over the weekend to run for another term in office, reports Reuters. The decision, widely expected for some time, paves the way for Correa’s reelection in February. He currently has the highest approval rating in the hemisphere at around 80 percent. A recent survey showed Correa receiving 55 percent of the vote, over 30 points ahead of his closest rival. As the AP recently pointed out, a major reason for Correa’s popularity is that “Ecuador now devotes a greater share of its economy, 10 percent of gross domestic product, to public investment in infrastructure, education and other purposes than any other nation in Latin America and the Caribbean.” Echoing these points, Elma Lincango, an Ecuadorean nurse, told Reuters, “I want all the public works to continue, and he needs another term in office to do that … My grandparents say that in their lifetime, he’s the only president that has worked exclusively for the poor.”
