In light of the latest World Bank tracking of inequality across Latin America, George Gray Molina, chief economist at UNDP in Latin America and the Caribbean, discusses three options for the governments of Latin America:
A third way to deal with stagnating inequality is to do nothing. This is, in fact, the most likely scenario, as reforms that address inequality are intensive in political and institutional capital. In these cases, countries will attempt to sustain declines in poverty through higher economic growth. They are likely to find, by the year 2020, that ‘more of the same’ does not often yield the same.