Socio Economic Inequality In Latin America Essay
Hineana Todd-Whitehead
300265377
Why is Socioeconomic Inequality so High in Latin America?
GEOG212
Why is Socioeconomic Inequality so High in Latin America?
Introduction
One of the most prominent features of Latin American countries is their collective characteristic of extensive and pervasive socioeconomic inequality (Huber 2009). Latin America has been described as the most unequal region of the world (Gasparini & Lustig 2011). Inequality within the region is so extensive that even the country with the lowest income equality is still more unequally distributed than any Organization for Economic Cooperation and Development (OECD) nation, Eastern European country or most of Asia. Socioeconomic inequality is pervasive across many aspects of living in Latin America, including education, health, income and political power (Lustig 1995). In most Latin American countries, the wealthiest 10 per cent of people …show more content…
The region’s long history of financial crises have added to the volatile nature of growth and income as well as to the low long-term growth rates when compared internationally. Economic crises therefore, have reinforced and heightened the persistence of socioeconomic inequality in Latin America (International Research Network on Interdependent Inequalities in Latin America 2013).
The import substitution industrialization model (ISI) adopted by Latin American countries from the 1930s brought about economic growth and formal sector jobs, however this monetarist approach generated dependence on external loans of which came to attention in the 1970s (Huber 2009). Rising oil prices in the 1970s and the collapse of commodity prices in the 1980s resulted in a drastic decline in the terms of trade affecting developing countries such as those in Latin America (Potter et al.
300265377
Why is Socioeconomic Inequality so High in Latin America?
GEOG212
Why is Socioeconomic Inequality so High in Latin America?
Introduction
One of the most prominent features of Latin American countries is their collective characteristic of extensive and pervasive socioeconomic inequality (Huber 2009). Latin America has been described as the most unequal region of the world (Gasparini & Lustig 2011). Inequality within the region is so extensive that even the country with the lowest income equality is still more unequally distributed than any Organization for Economic Cooperation and Development (OECD) nation, Eastern European country or most of Asia. Socioeconomic inequality is pervasive across many aspects of living in Latin America, including education, health, income and political power (Lustig 1995). In most Latin American countries, the wealthiest 10 per cent of people …show more content…
The region’s long history of financial crises have added to the volatile nature of growth and income as well as to the low long-term growth rates when compared internationally. Economic crises therefore, have reinforced and heightened the persistence of socioeconomic inequality in Latin America (International Research Network on Interdependent Inequalities in Latin America 2013).
The import substitution industrialization model (ISI) adopted by Latin American countries from the 1930s brought about economic growth and formal sector jobs, however this monetarist approach generated dependence on external loans of which came to attention in the 1970s (Huber 2009). Rising oil prices in the 1970s and the collapse of commodity prices in the 1980s resulted in a drastic decline in the terms of trade affecting developing countries such as those in Latin America (Potter et al.