Poverty And Inequality In Latin America: Some Political Reflections

POVERTY AND INEQUALITY IN LATIN AMERICA:
SOME POLITICAL REFLECTIONS
Guillermo O’Donnell
Working Paper #225 - July 1996
Guillermo O'Donnell, Helen Kellogg Professor of Government and International Studies, is
Academic Director of the Kellogg Institute for International Studies at the University of Notre
Dame.
This is a revised version of a paper prepared for the Workshop “Poverty in LatinAmerica: Issues
and New Responses” (Project Latin America 2000), University of Notre Dame, Helen Kellogg
Institute for International Studies, 30 September–1 October 1995.
The author thanks Vilmar Faria, Gabriela Ippolito-O'Donnell, and Víctor Tokman for their useful
commentaries on earlier versions of this paper.
ABSTRACT
The paper begins with a brief overview of the present social situationof Latin America, arguing
that during the 1980s the widespread poverty and deep social inequality already existing in the
region further increased. After this the paper reviews several strategies that could be used by
would-be reformers, pointing out the potentialities but also the limitations of these strategies.
Consequently the present text examines the broad contours of politicalcoalitions that might be
able to deal reasonably effectively with poverty and inequality. The paper concludes by arguing
that the only possible foundation for these strategies and coalitions is a morally and democratically
inspired view of the respect due to the dignity of every human being. The likelihood of such an
emergence is not assessed.
RESUMEN
El texto comienza con una breve síntesis de laactual situación social de América Latina,
argumentando que durante la década del 80 se agudizaron aun mas los problemas de extensa
pobreza y de profunda desigualdad preexistentes. A continuación el texto analiza alguna de las
estrategias que podrían ser utilizadas por actores empeñados en mejorar esta situación,
señalando las potencialidades así como las limitaciones de estas estragegias. Apartir de esto el
texto examina el perfil de las alianzas políticas que podrían enfrentar con razonable efectividad la
pobreza y la desigualdad existentes. La conclusión es que la única base posible para esas
estrategias y alianzas es una visión, moral y democráticamente inspirada, del respeto debido a la
dignidad intrínseca debida a todo ser humano. La probabilidad de los consiguientes procesosno
es evaluada en este texto.
I
The social situation of Latin America is a scandal. In 1990 about 46 percent of Latin
Americans lived in poverty. Close to half of these are indigents who lack the means to satisfy very
basic human needs. Today there are more poor than in the early 1970s: a total, in 1990, of 195
million, 76 million more than in 1970. These appalling numbers include 93 millionindigents, 28
million more than in 1970.i The problem is not just poverty. Equally important is the sharp
increase of inequality in most of the region during the 1970s and/or the 1980s (Tokman 1991,
1995); rapid economic growth in some countries in the late 1980s and/or early 1990s has not
reversed this trend.ii The rich are richer, the poor and indigentiii have increased, and the middlesectors have split between those who have successfully navigated economic crises and
stabilization plans and those who have fallen into poverty or are lingering close to the poverty line.
Furthermore, since around 1970 countries that were partial exceptions to the general
pattern (Chile and Argentina) have greatly increased their poverty and inequality, in spite of recent
years of rapid economicgrowth. Costa Rica and, to a lesser extent, Uruguay have held their own;
only Colombia has improved, but marginally and with higher levels of poverty than the previously
mentioned countries. Looking at this matter from another angle, indicators of literacy, infant
mortality and life expectancy have improved.iv But even in countries that by the 1960s had
developed the rudiments of a welfare...