Escaping the Poverty Trap

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Even if Latin America's policy makers were successful in creating an environment that better promotes rapid economic growth, widespread poverty would persist. Given the high level of income inequality requires, the region requires redistribution, particularly through programs aimed at improving education and health care.

The elimination of poverty must remain at the top of the policy agenda in Latin America and the Caribbean, where inequality is higher than in any other region and one in five people survive on little more than two dollars per day (as measured by the 1993 purchasing power parity (PPP) exchange rate).

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