Poverty in Latin America: One-Third of Region's Population At Risk of Falling Into Poverty
Latin American and the Caribbean have made strides in reducing poverty, but the United Nations Development Programme revealed many of the region's people are unable to enter the middle class.
According to UNDP, 595 million people live across Latin America and the Caribbean. UNDP stated poverty in the region was cut by nearly half during the last decade. The group at risk of falling into poverty represents 38 percent of the entire region's population, 200 million people, who earn between $4 and $10 per day.
Of the 200 million, approximately half, or 98.5 million, people are working.
The UNDP also found 25 percent of the Latin American and Caribbean region lives on $4 or less a day. The middle class earns between $10 and $50 per day and makes up 34 percent of the population.
UNDP revealed their findings in a report titled "Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience" during a regional presentation with El Salvador President Salvador Sánchez Céren.
"Clearly, if countries in the region don't reduce their vulnerability and boost their capacity to recover from financial crises and natural disasters, we will not be able to guarantee -- and much less improve -- regional progress in social, economic and environmental areas," said United Nations Assistant-Secretary General and UNDP Director for Latin America and the Caribbean Jessica Faieta.
UNDP reported the middle class grew by 82 million people since 2000, a 21 percent increase.
Peru experienced the best numbers of people leaving poverty levels and entering the middle class, with 19.1 percent. Bolivia had mixed news, with 32.2 percent poverty reduction, but 16.9 percent are vulnerable to falling into poverty. Argentina and Chile were also recognized for reducing poverty.
The Dominican Republic, however, saw its middle class shrink by 4 percent due to poverty growth. In El Salvador, poverty and the middle class decreased by 4.2 percent and 1.8 percent, respectively.
In nine of the 18 assessed countries in Latin America, 20.2 percent of people ages 15 to 24 do not work or study, notably Guatemala with 25.1 percent.
The U.N.'s development program agency acknowledged the region lacks social protection and, which could hinder poverty reduction. Medical access is not widely available for 49.6 percent of the 200 million people, and 46.1 percent have no retirement pension.
According to Faieta, economic and social progress has also slowed down worldwide, adding, "It is very clear that using the same policies will not provide the same results. More than ever, the region must invest in universal social protection, particularly in the most critical phases of life, as is the case with children, the elderly and youth entering the labor market."
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