This book provides fresh insight into rural poverty in Latin America. It draws on six case studies of recent rural household surveys - for Chile, Colombia, El Salvador, Honduras, Paraguay, and Peru - and several thematic studies examining land, labour, rural financial markets, the environments, and disadvantaged groups. Recognizing the heterogeneity within the rural economy, the studies characterize three important groups - small farmers, landless farm workers, and rural non-farm workers - and provide quantitative and qualitative analyses of the determinants of household income.

About half of the region's poor live in cities, and policy makers across Latin America are increasingly interested in policy advice on how to design programmes and policies to tackle poverty. This publication argues that the causes of poverty, the nature of deprivation, and the policy levers to fight poverty are, to a large extent, site specific. It therefore focuses on strategies to assist the urban poor in making the most of the opportunities offered by cities, such as larger labour markets and better services, while helping them cope with the negative aspects, such as higher housing costs, pollution, risk of crime and less social capital.

One out of every five Latin Americans or around 130 million people have never known anything but poverty, subsisting on less than US$4-a-day throughout their lives. These are the region ́s chronically poor, who have remained so despite unprecedented inroads against poverty in Latin America and the Caribbean since the turn of the century. Left Behind: Chronic Poverty in Latin America and the Caribbean takes a closer look at the region’s entrenched poor, who and where they are, and how existing policies need to change in order to effectively assist them. The book shows significant variations of rates of chronic poverty both across and within countries. Within a single country, some regions show incidence rates up to eight times higher than the lowest. Despite the higher rates of chronic poverty in rural areas, chronic poverty is as much an urban as a rural issue. In fact, considering absolute numbers, urban areas in many countries, including Chile, Brazil, Mexico, Colombia and the Dominican Republic, have more chronic poor than rural areas. Undoubtedly the region has come a long way during the decade in terms of poverty reduction, guided by a mix of sustained growth and increased levels in amounts and quality of public spending and programs targeted directly or indirectly to the chronic poor. While improving endowments and the context where the chronic poor live is a necessary condition going forward, the decade’s experience suggests that it may not be enough to reach the chronic poor. The book posits that refinements to the existing policy toolkit †“ as opposed to more programs †“ may come a long way in helping the remaining poor. These refinements include intensifying efforts to improve coordination between different social and economic programs, which can boost the income generation process and deal with the intergenerational transmission of chronic poverty by investing in early childhood development. Equally important though, there is an urgent need to adapt programs to directly address the psychological toll of chronic poverty on people’s mindset and aspirations, which currently undermines the effectiveness of the existing policy efforts.

Despite the recent economic upswing in many Latin American countries, rural poverty rates in the region have actually increased during the past two decades. Experts blame excessively centralized public administrations for the lackluster performance of public policy initiatives. In response, decentralization reformshave become a common government strategy for improving public sector performance in rural areas. The effect of these reforms is a topic of considerable debate among government officials, policy scholars, and citizensÕ groups. This book offers a systematic analysis of how local governments and farmer groups in Latin America are actually faring today. Based on interviews with more than 1,200 mayors, local officials, and farmers in 390 municipal territories in four Latin American nations, the authors analyze the ways in which different forms of decentralization affect the governance arrangements for rural development Òon the ground.Ó Their comparative analysis suggests that rural development outcomes are systemically linked to locally negotiated institutional arrangementsÑformal and informalÑbetween government officials, NGOs, and farmer groups that operate in the local sphere. They find that local-government actors contribute to public services that better assist the rural poor when local actors cooperate to develop their own institutional arrangements for participatory planning, horizontal learning, and the joint production of services. This study brings substantive data and empirical analysis to a discussion that has, until now, more often depended on qualitative research in isolated cases. With more than 60 percent of Latin AmericaÕs rural population living in poverty, the results are both timely and crucial.

Over the past decades, inequality has risen not just in advanced economies but also in many emerging market and developing economies, becoming one of the key global policy challenges. And throughout the 20th century, Latin America was associated with some of the world’s highest levels of inequality. Yet something interesting happened in the first decade and a half of the 21st century. Latin America was the only region in the World to have experienced significant declines in inequality in that period. Poverty also fell in Latin America, although this was replicated in other regions, and Latin America started from a relatively low base. Starting around 2014, however, and even before the COVID-19 pandemic hit, poverty and inequality gains had already slowed in Latin America and, in some cases, gone into reverse. And the COVID-19 shock, which is still playing out, is likely to dramatically worsen short-term poverty and inequality dynamics. Against this background, this departmental paper investigates the link between commodity prices, and poverty and inequality developments in Latin America.

Poverty is still widespread in Latin America, in spite of over five decades of international development efforts to eradicate it. While some progress was made during the first decade of the new Millennium, at least until the onset of the global food and economic crises, there are still over one hundred and eighty million people in the region who unable to meet their basic needs. This is the ‘poverty problematic’ that is at the center of this book. It addresses what are perhaps the most important questions of our time: What are the root causes of poverty? And how can it be overcome? Also, with regards to the recent progress in the so-called war against poverty, the editors ask: How real is this progress? What or whose actions are responsible for this achievement? Through a critical analysis of public policies and development pathways, Poverty and Development in Latin America provides nuanced responses to these questions. The major conclusion reached and shared by the editors is that poverty reduction cannot be sustained with an anti-poverty strategy based only on social inclusion and economic assistance, or humanitarian relief. It requires a substantive change in the structure of inequality, and a confrontation of the relations of production and power that sustain this structure.

Indigenous people constitute a large portion of Latin America's population and suffer from severe and widespread poverty. They are more likely than any other groups of a country's population to be poor. This study documents their socioeconomic situation and shows how it can be improved through changes in policy-influenced variables such as education. The authors review the literature of indigenous people around the world and provide a statistical overview of those in Latin America. Case studies profile the indigenous populations in Bolivia, Guatemala, Mexico and Peru, examining their distribution, education, income, labour force participation and differences in gender roles. A final chapter presents recommendations for conducting future research.

This collection of essays challenges long-entrenched ideas about the history, nature, and significance of the informal neighborhoods that house the vast majority of Latin America's urban poor. Until recently, scholars have mainly viewed these settlements through the prisms of crime and drug-related violence, modernization and development theories, populist or revolutionary politics, or debates about the cultures of poverty. Yet shantytowns have proven both more durable and more multifaceted than any of these perspectives foresaw. Far from being accidental offshoots of more dynamic economic and political developments, they are now a permanent and integral part of Latin America's urban societies, critical to struggles over democratization, economic transformation, identity politics, and the drug and arms trades. Integrating historical, cultural, and social scientific methodologies, this collection brings together recent research from across Latin America, from the informal neighborhoods of Rio de Janeiro and Mexico City, Managua and Buenos Aires. Amid alarmist exposés, Cities from Scratch intervenes by considering Latin American shantytowns at a new level of interdisciplinary complexity. Contributors. Javier Auyero, Mariana Cavalcanti, Ratão Diniz, Emilio Duhau, Sujatha Fernandes, Brodwyn Fischer, Bryan McCann, Edward Murphy, Dennis Rodgers

This publication examines the social impact of an unprecedented crisis. The effects of the COVID-19 pandemic have spread to all areas of human life, altering the way we interact, crippling economies and bringing about profound changes in societies. The pandemic has highlighted and exacerbated the major structural gaps in the region, and it is clear that the costs of inequality have become unsustainable and that it is necessary to rebuild with equality and sustainability, aiming for the creation of a true welfare state, long overdue in the region.

A Brookings Institution Press and Carnegie Endowment for International Peace publication Many of the countries that have recently converted to a market-based economic system have also experienced an alarming increase in income inequality — a widening gap between the haves and have nots. But to what extent is the increase in inequality also increasing the opportunities for economic advancement — particularly for those at the bottom of the economic ladder? Does the creation of greater opportunities make a region's move to the market politically acceptable? And, if opportunities don't increase along with inequality, will it eventually cause a political backlash against a country's market policies? This book highlights the importance of finding the answers to those questions by examining the issues of social mobility and opportunity as an essential part of the income inequality puzzle. It provides a summary of the latest research on the economics and politics of social mobility in both developed and emerging market economies, including the conceptual issues involved and the challenges of accurately documenting trends. The book concludes with a discussion of the economics of opportunity and mobility in Latin America and Eastern Europe, and the politics and perceptions of mobility in the two regions.