The deepening of inequalities in Latin America during and after the pandemic

Maria Gabriela Palacio Ludeña and Fabio Díaz Pabón
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Maria Gabriela Palacio Ludeña: Faculty of Humanities, Leiden University

No 281, SALDRU Working Papers from Southern Africa Labour and Development Research Unit, University of Cape Town

Abstract: Latin America continues in social, economic, and political turmoil in 2021. The vulnerabilities set by pre-existing conditions such as persistent inequality, high informality and exclusionary social protection systems have been exacerbated by recent health and humanitarian crises unprecedented experienced in the region’s modern history. These crises have significantly impacted on socioeconomic indicators, as accounted in the increased levels of vulnerability and poverty next to stagnant economic growth. Public sector responses have been relevant but insufficient to cushion the effect of these multiple crises and, in many cases, unveiled the degree to which unrequested orthodoxy limited the role of the state in providing adequate support to its citizens. The chapter explores efforts to tackle the impacts of compounded deprivations of spatial segregation, pervasive informality, gendered and racialised vulnerabilities, and the education crisis, and explores the options governments face in terms of reversing the adverse effects of the pandemic while sustaining the economic rebound. In a context of polarised political participation, discontent will inevitably lead to contention and, in some cases, instability and violence, should the governments choose to be aloof about the need for a socially just recovery.

Keywords: Inequality; Latin America; COVID-19; social policy; poverty; social mobilisation (search for similar items in EconPapers)
Date: 2021
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