Poverty In Latin America


In Latin America, the signs of inequality and poverty stay eminent, but symptoms of progress are indicating. The falling trend in inequality and poverty was observed in the past decade for most of the countries. The declining rate of poverty and inequality is corresponded with the election in seven governments, i.e. Bolivia, Uruguay, Brazil, Ecuador, Chile, Argentina, Nicaragua and Venezuela. Ten countries representing 2/3rd of the region’s inhabitants had left-leaning regimes by 2009. The purpose of this paper is to investigate the responsibility of these novel regimes in reducing poverty and inequality in Latin America.

Political system matters for reduction in poverty causing inequality. On the other hand, as the supposed left populist governments did lessen poverty and to some degree, these cutbacks act as go back to standard levels. They are going to that level where normal variation is projected by predetermined outcomes. Alternatively, Brazil and Chile had achieved the historical fall in not only inequality but also in poverty.

In addition to it, Venezuela and Argentina had been convalescing from the economic downturn and gained an edge from a rapid increase in the price of goods during 2002 to 2008. If one cannot control on the factors influencing poverty, then one cannot come up with a point that it was the proposal and plan of their government, causing reduction in unequal distribution and poverty over a specified period of time.

Actually, the effect of poverty reducing public expenditure in Bolivia, Venezuela and Argentina turned out to be statistically immaterial once fixed effects and rise in price of products can be controlled. The rate of growth and the terms of trade considerably effect on the rate of poverty in the similar way as on the rate of spending. Furthermore the narrator suggested that in order to reduce inequality and poverty, the social egalitarian governments in Chile, Brazil and Uruguay (to a slighter degree) have been unbeaten than the populist governments. The former governments seem to target the current spending level in a better way. Furthermore, reallocation of this spending on the way to social agendas has a strong effect.

The matter of fact is that the proof of reduction in poverty is vigorous to a variety of evaluation methods along with measures of poverty. By keeping in mind these points, further research must examine other such tools which may help the groups lying under the burden of poverty in social egalitarian governments.