UN: Latin America will be “trapped” until it universalizes social protection

Share your love

New York, Jun 22 (EFE) .- Latin America will be “trapped” between high inequality and low economic growth until its governments implement comprehensive policies that improve and universalize the population’s social protection, according to a report published this Tuesday by the ONU.

That is one of the conclusions of “Trapped: high inequality and low growth in Latin America and the Caribbean”, a report prepared by the United Nations Development Program (UNDP) and that its leaders previously presented at a virtual press conference with journalists.

His thesis is that Latin America and the Caribbean are in a persistent “dual trap” of high inequality and low productivity fueled by three interconnected factors: concentration of power, violence in all its forms, and social protection policies that do not work. well.

The UNDP regional director, Luis Felipe López-Calva, explained the concept of being “trapped” as follows: “The problems are related and if we continue to react partially, if each group proposes non-comprehensive policies, it is as if we were digging and doing bigger the hole “.

The gap between extreme wealth and extreme poverty and vulnerability that characterizes the region deepened further as a result of the covid-19 pandemic unleashed last year, making it difficult to achieve the UN 2030 Agenda and its Sustainable Development Goals (ODS), the report warns.

CONCENTRATED ECONOMIC AND POLITICAL POWER

The main author of the study, Marcela Meléndez, revealed that the markets of the region tend to be dominated by a small number of powerful “giant” companies that limit competition and raise prices, which ultimately affects the most powerful sectors. poor.

Read Also   The Newmont mining company will invest at least 500 million dollars in Peru

Meléndez, also chief economist and coordinator of the development and SDG policy group, pointed out that these companies operate with “inefficient technologies” and also give rise to a vicious monopolistic circle, since they seek “rents” from public policies to “perpetuate power. market or increase it. “

An example that is explored in the report is the role of economic elites in blocking fiscal reforms that would support a more progressive form of redistribution, and to balance the distribution of power it is suggested to explore the regulation of the “lobby” and the financing of political campaigns.

Article source: https://es-us.finanzas.yahoo.com/

Share your love