Income Equality-Latin America is not the region with the largest share or number of poor people in the
world (south Asia has that distinction). But it is the one with the most unequal income distribution,
which means that the poor there receive a smaller share of total national income than poor people in
other regions. As a result, poverty rates in Latin America are systematically higher than would be
expected compared with other countries with similar average incomes.
The Gini coefficient is an index of inequality widely used in the social sciences. If all income were to go to
one person, the Gini coefficient would be 1. If everybody had the same income, the Gini would be
zero.The higher the Gini, the more unequal the country or region. Countries in Latin America, by this
measure, are 30 percent more unequal than the world average
http://www.imf.org/external/pubs/ft/fandd/2015/09/lustig.htm
Income inequality is falling in Latin America even as it rises elsewhere in the world, according to
a World Bank study that encourages government intervention to reduce the wealth gap.
Over the past 15 years, more than 50 million people have risen into the middle class, which is now – for
the first time – about the same size as the population of poor in the region, says the report, which was
unveiled on Tuesday.
For decades, Latin America was notorious for some of the widest income gaps in the world, but a
combination of favourable economic conditions and interventionist policies by left-leaning governments
in Brazil and other countries has brought it more closely in line with international norms.
"This is not just a statistical anomaly. It is a significant reduction in inequality," said the World Bank's
regional chief economist, Augusto de la Torre.
https://www.theguardian.com/world/2012/nov/13/latin-america-income-iniquality-falling
Natural disaster-Natural disasters are a phenomenon that the whole world has to put up with, but Latin
America and the Caribbean are particularly vulnerable to the whims of earth, wind and fire. Floods,
droughts, storms and earthquakes are a near-constant threat across the region, and while some areas
are more prone to environmental hazards than others, there cannot be many regions in Latin America
where communities are forever able to take their eye off the threat of some sort of disaster.
https://eyeonlatinamerica.com/2014/07/23/natural-manmade-disasters-latin-
america/.RetrieveonFebruary24,2017
Example: Eeartquake in Haiti: The earthquake hit at 4:53 PM some 15 miles (25 km) southwest of the
Haitian capital of Port-au-Prince. The initial shock registered a magnitude of 7.0 and was soon
followed by two aftershocks of magnitudes 5.9 and 5.5. More aftershocksoccurred in the following
days, including another one of magnitude 5.9 that struck on January 20 at Petit Goâve, a town some 35
miles (55 km) west of Port-au-Prince. Haiti had not been hit by an earthquake of such enormity since the
18th century, the closest in force being a 1984 shock of magnitude 6.9. A magnitude-8.0 earthquake had
struck the Dominican Republic in 1946.
It was estimated that some three million people were affected by the quake—nearly one-third of the
country’s total population. Of these, over one million were left homeless in the immediate aftermath. In
the devastated urban areas, the displaced were forced to squat in ersatz cities composed of found
materials and donated tents. Looting—restrained in the early days following the quake—became more
prevalent in the absence of sufficient supplies and was exacerbated in the capital by the escape of
several thousand prisoners from the damaged penitentiary. In the second week of the aftermath, many
urbanites began streaming into outlying areas, either of their own volition or as a result of governmental
relocation programs engineered to alleviate crowded and unsanitary conditions.
Palladry.R(2016)HaitiEarthquakeof2010.Retrievefromhttps://www.britannica.com/event/Haiti-
earthquake-of-2010
Drag trade-Latin America is a crucial geographic zone for drug production and trafficking. The Andean
countries of Colombia, Peru and Bolivia are the world’s main cocaine producers, while Central America,
Mexico and the Caribbean have become the principal corridors for transporting drugs into the United
States and Europe.
As a result, the countries of the region have suffered various consequences of drug trafficking and US-
led eradication and interdiction efforts. In production countries, these include environmental and
community damage from forced eradication of coca crops such as aerial spraying and the funding of
guerrilla insurgent groups through illicit crop cultivation and sale, most notably, FARC in Colombia and
the Shining Path in Peru.
Drug Trafficking in Latin America.http://www.drugpolicy.org/drug-trafficking-latin-america.Retrieve on
feb.27,2017
Bolivia-According to UNICEF, poverty in Bolivia is among the worst in South America. Economic growth
and opportunities to make a living are most commonly found in urban areas because the more citizens
in a setting, the more consumers there are. This makes it difficult however for indigenous farmers,
inhabitants of more remote areas with fewer people, to market their products and provide for their
families.
For the vast majority of citizens in Bolivia, this proves to be a major issue. 60% of Bolivians live below the
poverty line. In rural areas, the numbers are even more dramatic. Three out of every four people living
in these areas suffer from poverty. Because of this, Bolivia the poorest country in South America.
One reason for the extreme poverty lies in the geography of Bolivia. Undeveloped roads and
infrastructure make up a vast portion of the country, with a majority of the land inhabited by indigenous
citizens. This makes it difficult for farmers living in these areas to market their products and travel to sell
them, which in turn impacts their families and the communities they live in.
24MAY2014
Bolivian Income Gap Causes Extreme Poverty
Bolivia is the poorest country in South America. It possesses the largest ratio of indigenous people,
who make up 62 percent of the population. Most of these indigenous groups suffer from poverty—over
74 percent are poor. The indigenous groups also make up most of the rural areas, where the greatest
amount of poverty in the region is found. The unemployment rate remains high, with 8 percent of the
population without jobs, increasing poverty in rural areas.
Bolivia’s income distribution is one of the most uneven in the world, ranking second in unequal
income distribution. The land is rich in minerals and resources, but the elite Spanish ancestry dominates
the economic system. Most Bolivians are low income farmers and traders. There has been long running
tension over the rich natural gas resources by exploitation and export, which continues to strengthen
the Bolivian income gap.
https://borgenproject.org/bolivian-income-gap-causes-extreme-poverty/
The poverty and corruption of Bolivia's past continue to plague the country today. With a per capita
income of $2,800—as compared to an average of $8,200 for other Latin American countries—Bolivia
stands as the poorest nation on the continent. Furthermore, real GDP per capita in Bolivia is less today
than it was 27 years ago, while 64 percent of the country lives below the poverty line. These conditions
leave numerous Bolivian citizens unable to plan for the future, afford adequate health care, receive an
education, or address fundamental social issues such as inequality.
Though rich in mineral and energy resources, Bolivia is one of South America's poorest countries.
Wealthy urban elites, who are mostly of Spanish ancestry, have traditionally dominated political and
economic life, whereas most Bolivians are low-income subsistence farmers, miners, small traders or
artisans.
http://news.bbc.co.uk/2/hi/americas/country_profiles/1210487.stm
Paraguay is a poor and unequal society. It ranks as the second poorest country in South America. A
large percentage of the population derives their living from agricultural activity, often on a subsistence
basis. Excessive use of police and military force, impunity, poor prison conditions, and violence against
women continue to be key concerns. Conflicts over land, both agricultural and urban, often lead to
excessive use of force. The Truth and Justice Commission is investigating past violations of human rights,
but impunity for past and current abuses and an illegal delay in compensation for past abuses remain
problems. Prisons continue to be sites of new abuses, and the vast majority of prisoners have never
been convicted of any crime. Domestic violence is widespread. Thousands of children work in the
streets, and women and children are vulnerable to trafficking and other forms of abuse. Judicial
protection for vulnerable populations is limited.
Homophobia is a pervasive, accepted aspect of Paraguayan culture; being gay and being communist are
considered the country's two greatest sins - both grounds for imprisonment or exile.
http://www.globalgayz.com/south-america/paraguay/
Paraguay has an extreme gap between the small upper class and the large lower class, and there has
historically been virtually no social mobility. Paraguay has the most unequal distribution of land in the
region. Less than 10 percent of the population owned and controlled over 75 percent of the nation's
land in the late 1990s, leaving much of the large rural population landless and living in extreme poverty.
In the mid-1990s, nearly half of the farmers in Paraguay did not own land, according to Ramón López
and Alberto Valdés, writing for the World Bank.
Paraguay - Poverty and wealth
http://www.nationsencyclopedia.com/economies/Americas/Paraguay-POVERTY-AND-
WEALTH.html.Retrieveonfebruary25,2017
