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Is America becoming more unequal?
Latin America is much more unequal than other regions. The reason is history. European colonisation set a pattern of exploitation of indigenous Indians. Its legacy, and that of slavery, live on. This helps to explain the ethnic character of some of the region's inequality. The Bank finds that in Guatemala one in five “white” men have a car, compared with only one in 20 men of indigenous blood. In Bolivia, 84% of “white” women have access to electricity, compared with 64% of Indian women.
Take, for example, the Gini coefficient, a statistical measure of inequality in which zero expresses complete equality. The average Gini coefficient for Latin American countries increased from 50.5 to 51.4 over the 1990s (ie, inequality rose slightly). But weight the results by population, and that result is reversed (from 51.9 to 51.5). That is because Brazil became less unequal, and Mexico slightly so (see chart). But variations between countries narrowed: inequality worsened, for instance, in previously more egalitarian Argentina.
Is America becoming more unequal?Discuss ..
Today, inequality in Latin America is mainly due to the interlocking effect of four things, says the Bank: access to education is unequal; the earnings of educated people are disproportionately high; the poor have more children with whom they must share their income; and targeting of public spending is ineffective.
Is America Becoming More Unequal
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