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Mr. Ravi Balakrishnan, Sandra Lizarazo, Marika Santoro, Mr. Frederik G Toscani, and Mr. Mauricio Vargas
Over the past decades, inequality has risen not just in advanced economies but also in many emerging market and developing economies, becoming one of the key global policy challenges. And throughout the 20th century, Latin America was associated with some of the world’s highest levels of inequality. Yet something interesting happened in the first decade and a half of the 21st century. Latin America was the only region in the World to have experienced significant declines in inequality in that period. Poverty also fell in Latin America, although this was replicated in other regions, and Latin America started from a relatively low base. Starting around 2014, however, and even before the COVID-19 pandemic hit, poverty and inequality gains had already slowed in Latin America and, in some cases, gone into reverse. And the COVID-19 shock, which is still playing out, is likely to dramatically worsen short-term poverty and inequality dynamics. Against this background, this departmental paper investigates the link between commodity prices, and poverty and inequality developments in Latin America.
George Psacharopoulos and HARRY ANTHONY PATRINOS

.7 Source: ‘Indigenous People and Poverty in Latin America: An Empirical Analysis.” 1 An individual is considered to be below the poverty line if his/her income is less than $2 per day. How poor is poor? Although the situation has improved somewhat in recent decades, there is no question that the indigenous people of Latin America live in conditions of extreme poverty, with the children unable to keep up with their non-indigenous counterparts. Income levels . While a large proportion of the total population of Latin America is poor (earning less than

Alicia Bárcena

Poverty in Latin America and the Caribbean fell from 48.4 percent in 1990 to 31.4 percent in 2010, reaching its lowest level in 20 years, according to a new report from the United Nations Economic Commission for Latin America and the Caribbean. The rate of extreme poverty or indigence (a level of income that does not cover nutritional needs) also fell during this period—from 22.6 percent to 12.3 percent. Despite these achievements, 177 million people remain in poverty, including 70 million in extreme poverty. The report predicts a slight drop in the poverty

Mr. Ravi Balakrishnan, Sandra Lizarazo, Marika Santoro, Frederik G. Toscani, and Mr. Mauricio Vargas

Over the past decades, inequality has risen not just in advanced economies but also in many emerging market and developing economies, becoming one of the key global policy challenges. And throughout the 20th century, Latin America was associated with some of the world’s highest levels of inequality. Yet something interesting happened in the first decade and a half of the 21st century. Latin America was the only region in the World to have experienced significant declines in inequality in that period. Poverty also fell in Latin America, although this was replicated in other regions, and Latin America started from a relatively low base. Starting around 2014, however, and even before the COVID-19 pandemic hit, poverty and inequality gains had already slowed in Latin America and, in some cases, gone into reverse. And the COVID-19 shock, which is still playing out, is likely to dramatically worsen short-term poverty and inequality dynamics. Against this background, this departmental paper investigates the link between commodity prices, and poverty and inequality developments in Latin America.