Poverty reduction in Latin America at a standstill

Poverty faced 167 million people in Latin America in 2014—as much as 28% of its population. Out of this amount, 71 million (12% of the people in the region) live in extreme poverty, according to estimates released on Monday (Jan 26) by the Economic Commission for Latin America and the Caribbean, or Eclac.

The Social Panorama of Latin America 2014 shows that poverty levels have held steady since 2012, when 28.1% of the people were affected. In 2013, the rate was also reported at 28.1%. Extreme poverty, in turn, rose from 11.7% in 2013 to 12% in 2014. Eclac Executive Secretary Alicia Bárcena explains that the food price hikes and the economic slowdown challenging the region are among the factors leading to the stagnation. “Poverty is still a structural problem; it has remained at a standstill since 2012,” she argues.

In her view, the recovery from the global financial crisis “doesn't seem to have been sufficiently exploited for strengthening social protection policies that mitigate the vulnerability when facing economic cycles.”

In Brazil, Eclac reports, the portion of the population affected by poverty has slipped from 18.6% in 2012 to 18% in 2013. The same does not hold true for extreme poverty, however, which went up from 5.4% to 5.9% in the largest Latin American country. Eclac Director in Brazil Carlos Mussi says there are 34 million Brazilians living in poverty, 11 million of whom facing extreme levels. “The increase in food prices has caused a great impact on indigence in Brazil and Latin America. Although the country's labor market is a dynamic one, its dynamic is on the wane,” Mussi argued.

Translated by Fabrício Ferreira