Poverty and Inequality: Social and Economic Policy

Increasingly, empirical evidence and policy research show that prevailing high levels of inequality are a fundamental impediment to sustained economic growth, as well as political and social development in Latin America. In recent years, the question of inequality has come to the fore among academics, multilateral agencies and national governments in the region. The issues of inequality and poverty are also embodied in the successive declarations and action plans generated by the Summit of the Americas process. Hemispheric discussions consistently point to the need to devise specific policies to reduce the income and opportunity gap as this is deemed the prominent, if not primary, issue facing countries in Latin America.

Intrinsic to this debate is the belief that existing institutional structures do not have the capacity to address the chronic nature of these social and economic problems. Hemispheric experts repeatedly emphasize the need not only to renew efforts for fiscal and educational reform but also to make these areas a priority. However, such initiatives remain a significant challenge for most countries due to structural impediments and the failure to align reforms with broader national development agendas. In addition, reforming legal (i.e. property rights), regulatory (i.e. labour market) and political structures (i.e. judiciary, civil service) are critical measures for redressing severe inequality and exclusion. Thus far, these areas have proven to be of great political complexity. As a result, only a handful of Latin American countries have made progress in these spheres. FOCAL’s work on social and economic policy also focuses on the impact of persistently high unemployment and the potential held through trade liberalization for generating growth, jobs and overall development. This project not only contributes to broader policy research but also to debates underlying Canadian foreign policy toward Latin America.

Project Objectives:

FOCAL has set out to achieve these objectives though a series of events, workshops, conferences and publications, drawing upon a growing network of experts throughout the Americas.