Latin America. One million people in Latin America will emerge from extreme poverty during 2012, according to statistics released this week by ECLAC, thanks mainly to the increase in labor income, which has been one of the determining factors.
But despite this good news, the work of the governments of the region must still be very strong, since there are still 167 million people in poverty in our region, equivalent to 28.8% of the inhabitants. Of these, 66 million are in extreme poverty.
"The current rates of poverty and indigence are the lowest observed in the last three decades, which is good news for the region, but we are still facing unacceptable levels in many countries. The challenge is to generate quality jobs within the framework of a development model aimed at equality and environmental sustainability," said ECLAC Executive Secretary Alicia Bárcena.
As in previous years, the increase in labour income in poor households was the most determining factor in poverty reduction. Transfers (both public and private) and the rest of the income contributed, but to a lesser extent, to this decline.
According to the report, inequality in income distribution has been reduced in the last decade, although this issue remains one of the main challenges in the region. The latest statistics available for 18 countries indicate that on average the richest 10% of the Latin American population receives 32% of total income, while the poorest 40% receive only 15%.
