CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

(Barry) #1

Data for Latin America and the Caribbean suggest a varied, yet


gravely unequal, region (Figure 13). Much of this appears to be


rooted in historically unequal patterns in land tenure, ethnic


discrimination and limited taxation coupled with the more recent


effects of privatization and liberalization beginning in the early


1990s. Since 2000, however, the region has demonstrated significant


signs of progress on the equality front, as 16 of the 21 countries


with data experienced a decline in their Gini index between 2000


and 2008. Much of this reflects the combination of macroeconomic


and social protection policies, which have been adopted widely


throughout the region (Cornia and Martorano 2010, Lopez-Calva


and Lustig 2010). According to Solt (2009), some of the Latin


American countries that have recorded the largest improvements in


inequality since 2000 include Argentina, Bolivia, Brazil, Chile, El


Salvador, Mexico, Panama, Paraguay and Peru, all of which reduced


their Gini indices by more than two points.


Compared to other regions, the Middle East and North Africa


presents a more challenging assessment (Figure 14). This largely


reflects the limited availability of data. For the observations that are


afforded, however, two major trends appear. The first is that there


appears to be general parity across the region in terms of income


equality. Second, it seems that there has been very little change over


time in either direction, whether improving or worsening equality.


The exception here appears to be Yemen, which increased its Gini


index by five points from 2000-08 according to Solt (2009). Yet


such findings should be taken with caution. In particular, the wave


of social unrest that swept across the Middle East and North Africa


in early 2011 suggests that, perhaps, levels of inequality are more


severe than official estimates indicate.


(^33)
Although Sub-Saharan Africa, on the aggregate, has some of the
highest income inequalities in the world, there is a trend toward
improvement (Figure 15). Since the 1990s, the biggest reductions
have been reported in Cameroon, Gabon, Guinea-Bissau, Lesotho,
Malawi, Senegal and Sierra Leone, all of which reduced their Gini
(^33) This paper does not question the reliability of income distribution information
reported in the main sources used for this analysis (e.g. Egypt and Pakistan
appear as equal as France). See Annex 1 for description of caveats.

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