[EQ] Declining Inequality in Latin America: Some Economics, Some Politics

Declining Inequality in Latin America:
Some Economics, Some Politics

Nancy Birdsall is president of the Center for Global Development
Nora Lustig is the Samuel Z. Stone Professor of Latin American Economics at Tulane University and non-resident senior fellow at the Center for Global Development and the Inter-American Dialogue
Darryl McLeod is associate professor in the economics department at Fordham University

CGD Working Paper 251. Washington, D.C. Center for Global Development June 2011

Available online PDF [31p.] at: http://bit.ly/iw8RTY

“….Latin America is known to have income inequality among the highest in the world. That inequality has been invoked to explain low growth, poor education, macroeconomic volatility, and political instability. But new research shows that inequality in the region is falling.

In this paper we summarize recent findings on inequality, present and discuss an assessment of how the type of political regime matters and why, and investigate the relationship between changes in inequality and changes in the size of the middle class in the region.

We conclude with some questions about whether and how changes in income distribution and in middle-class economic power will affect the politics of distribution in the future….”

 

 

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