Latin American poverty eases to 32 pct in 2010 - UN

[Judi Lynn]

Latin American poverty eases to 32 pct in 2010 - UN
SANTIAGO | Wed Dec 1, 2010 12:14am IST

(Reuters) - Poverty in Latin America will ease to 32.1 percent in 2010 from 33.1 percent last year as economies recover from the worst of the global crisis, the United Nations' regional economic body said on Tuesday.

Alicia Barcena, head of the Economic Commission for Latin America and the Caribbean, said the region was back on track in its battle to reduce poverty that started in 2003 and was interrupted in 2009 by the global financial crisis.

"Countries in the region are showing a resilience in social variables that didn't register in prior crises," Barcena said at a press conference.

The disparity between the rich and poor in Latin America is among the greatest in the world. The commission's report said higher incomes among poor households and government spending during the financial crisis helped contain poverty levels.

More:
http://in.reuters.com/article/idINIndia-53249020101130

[Peace Patriot]

1. I'll bet Rotters doesn't tell us that Venezuela was recently declared THE MOST EQUAL COUNTRY IN...

...LATIN AMERICA, by the same UN Economic Commission. 'Venezuela, the "failed state" with the "dictator"???' some might wonder. Yeah, them. Reduced poverty by half and extreme poverty by over 70%. Nor will the New York Slimes tell you, nor the Associated Pukes, nor any of the rat bastards who own the 'news.' I just checked this Rotters article. No, they don't tell you. Maybe it'll show up in some Top Secret Cable.--then maybe they'll cover it. But probably not. Jeez.

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I recced this thread, I want people to know.

[social_critic]

3. They didn't bother to tell us it has a declining GDP either

They didn't bother to tell us that Venezuela also has a declining GDP, or record inflation. The article was limited in scope.

[EFerrari]

2. Is this one of the benefits of telling the IMF to go cheney themselves?

It's remarkable, really.

[social_critic]

4. Not really

Achieving greater equality isn't that difficult if one starts from a low base, and the nation has the ability to go into debt to use money to correct distributive imbalances. However, such equality, reached by borrowing and the creation of a client class, isn't lasting, and the resulting debt and high cash inflows caused problems. In Venezuela's case, the problem is indeed greater and greater debt ratios - which Venezuela can afford now, but which eventually become unsustainable. Another adverse impact is inflation, as cash flows into an economy unable to handle it.

This is the reason why the current course isn't going to continue - it just can't. They will have to devalue the currency, tightern their belts, and stop borrowing. Something needs to be done to encourage more gainful employment in the formal sector - a country can't move ahead when so many people make a living in the informal economy. And to create this employment, more emphasis needs to be given to education, and less to military hardware and surreal projects. I already pointed out when I criticized the government's lame use of cash to buy Portuguese computers for children, rather than spending the money to upgrade school buildings and provide the children with a solid breakfast in school.

But if one observes Venezuela closely, one sees a lot of these incongruent moves, which lead to wasted effort and increase the probability that their effort will fail. Which is a pity, because so many of them do mean well. It's just that they lack pragmatism and ability to develop strategic themes, which is what drives countries forward.