São Paulo – The population of Latin America and the Caribbean is benefitting from economic growth, reduced unemployment rates and wage increases, and leaving poverty to join the middle class. According to a study released this Friday (14th) by the World Bank, in 2011, for the first time ever, there were more middle-class citizens than poor ones in Latin America. The bank rates as “middle class” those whose incomes range from US$ 10 to US$ 50 per day, and as “poor” those who make US$ 4 to US$ 10 daily.<\/p>\n
The study warns, however, that social inequality reduction policies must be adopted or maintained in order to prevent people who have exited poverty to be drawn back into it. <\/p>\n
According to the report Shifting Gears to Accelerate Shared Prosperity in Latin America and the Caribbean <\/em>, the two main reasons that have led the population out of poverty were increased employment and income. Since the year 2000, according to the document, wages increased by an average of 25%. During the same period, the wages of the 40% poorest increased the most and fastest. <\/p>\n However, there are still roughly 80 million people living in extreme poverty, i.e. on less than US$ 2.5 a day. More than half of those people live in Brazil and Mexico, the two countries with the largest populations in the region. The study also warns that 40% of Latin Americans may find themselves in poverty conditions in the event of economic crises or changes in climate.<\/p>\n In order to prevent that from taking place, the World Bank survey advises governments in the region to adopt income distribution policies. The bank lists four such policies: maintaining an equitable, efficient and sustainable fiscal policy that fosters shared prosperity; strengthening fair, transparent institutions that deliver quality public goods and services; enabling an environment of well-functioning markets that are accessible for all economic levels of society; and improving risk management at both the macro- and household levels.<\/p>\n “Equity-oriented policies can enhance a region’s capacity to grow in a sustained manner. Enabling people who are currently marginalized to improve their living conditions will unleash their inherent economic potential, increasing overall productivity and thus spurring growth,” according to the document. If the measures are adopted, the region should eradicate poverty by 2030, the report claims. Otherwise, the target may take an additional 24 years to be met. <\/p>\n *Translated by Gabriel Pomerancblum<\/strong><\/p>\n