1945

The relative poverty approach

Indicators of relative poverty, such as those commonly used in European countries, generate a different panorama for Latin America than that produced by the analysis of absolute poverty. Relative poverty rates range from 26% to 32%, i.e., below absolute poverty levels in nearly all the countries and quite similar everywhere. Moreover, with few exceptions, relative poverty has not changed much between 1990 and 2005. The lack of change is largely attributable to the rigidity of income distribution, on which the indicators used directly depend. Lastly, while these indicators are useful for outlining certain characteristics of living standards, they are insufficient to give a comprehensive view of poverty in Latin America.

Related Subject(s): Economic and Social Development
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