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NUMERO 15 - 29/07/2009

 Aims and scope of economic policies against inequality

The following text seeks to locate the standpoint of policies against inequality within the frame of the Latin American and Caribbean economic policy. The approach and main ideas, based on Moreno- Brid and Puchet Anyul (2008), highlight what are in our view the key measures to be specifically directed toward reducing inequality and fostering economic growth are especially linked with aspects of regulation, and not only to direct state intervention. The central idea is that inequality creates social, economic and political tensions that impede the correct functioning of fundamental markets.as well as distort the effects of various economic policies including regulatory procedures and decisions. The paper concludes that, in the case of Latin America, the reduction of inequality is not only an ethical consideration but a requirement for economic growth and poverty alleviation.
Results of the economic policy on growth, poverty and inequity
Latin America has managed to consolidate a low inflation index and the correction of public finances. These important accomplishments must not be neglected. However, they are still insufficient to launch and sustain a robust and socially inclusive growth process. Regardless of these advances, most of the economies of the region have experienced growth with scarce dynamism and a limited advance in the battle against poverty. Significant inequities persist in the access of the poorer to education and quality heath care, to the use and property of land, machinery and equipment, to information and technological advances, as well as to funding. Such inequities are systematically translated into a marked inequality of wealth, income and consumption, and give place to divergent productivities derived from a higher availability of resources – human, physical and financial – as well as from the possibility to access political power. Therefore, the economic system has reproduced a polarized society in which vast contingents submersed in massive poverty coexist with privileged minorities whose prosperity stands out even at an international level...

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