Equality and sustainability at the current development crossroads in Latin America and the Caribbean

The Latin American and Caribbean region has, with considerable variation between countries, a mix of structures and institutions that produces highly segmented low-productivity economies, as well as societies with inequalities of means, capacities, relational networks and reciprocal recognition. The combination of poorly diversified structures, with few knowledge-intensive activities, and inefficient institutions that are often controlled by powerful economic and political interests leads to a primary “i.e. market-driven” distribution of resources that is highly unequal and, in turn, only marginally shaped by fiscal and social policies. Sharp inequality is not confined to means and resources, but rather encompasses various dimensions of wellbeing and individual capacities and permeates the relationships that these individuals form. Although the region has made major strides towards greater equality over the past decade, that progress is fragile. This recognition is the starting point; the challenge for the next decade is to move towards a new combination of structures and institutions capable of generating increasing levels of productivity and equality, in the framework of development with sustainability in different dimensions.

Related Subject(s): Economic and Social Development