Within the past decade, 70 million people were able to escape poverty in Latin America due to economic growth and a lessened income gap. However, millions still remain in the cycle of poverty. Presented below is key data about poverty in Latin America.
10 Leading Facts on Poverty in Latin America
- One in five Latin Americans lives in chronic poverty conditions. Latin Americans account for 130 million of the nearly 500 million who live in chronic poverty worldwide.
- Poverty rates vary from country to country in the Latin American region. With estimated poverty rates floating around 10 percent, Uruguay, Argentina and Chile have the lowest chronic poverty rates. Meanwhile, Nicaragua with 37 percent and Guatemala with 50 percent have the highest chronic poverty rates in Latin America, which are well above the regional average of 21 percent.
- Poverty rates can also vary within a country. A single country can have both ends of the spectrum with the highest poverty rate that is eight times higher than the lowest. For example, Brazil has a chronic poverty rate of 5 percent in Santa Catarina, but 40 percent in Ceará.
- Poverty in Latin America encompasses both urban and rural areas. Most assume that rural areas have higher poverty rates than urban areas, like in Bolivia, where the amount of people living in rural poverty is 20 percentage points higher than those living in urban poverty. However, the number of the urban poor is higher than the number of rural poor in Chile, Brazil, Mexico, Colombia and the Dominican Republic.
- Poor Latin Americans lack access to basic health care services. Approximately 20 percent of the Latin American and Caribbean population lack access to health care due to their poverty conditions. The region also has high rates of non-communicable diseases (NCDs) such as hypertension, diabetes, obesity and cancer.
- Those living in poverty in Latin America lack access to safe water and sanitation. The World Water Council reported that 77 million people lack access to safe water or live without a water source in their homes. Of the 77 million, 51 million live in rural areas and 26 million live in urban areas. An estimated 256 million rely on latrines and septic tanks as an alternative to basic sanitation.
- The lack of education in Latin America lowers prospects of rising out of poverty. One in 12 young people ages 15 to 24 have not completed primary school, and therefore lack the skills necessary to find decent jobs. The same age group represents 40 percent of the total number of unemployed in many Latin American countries. When they are employed, six out of 10 jobs are informal, lacking decent wages, contract agreements and social security rights.
- Limited economic opportunities keep the poor in poverty. The biggest factor that led to poverty reduction from 2004-2012 was labor income. The Huffington Post reported that in poor households every Latin American country had an average of 20 percent “fewer human resources to generate income” than non-poor households and those households who managed to escape poverty.
- Chronic poverty levels are falling. Between 2000 and 2014, the number of Latin Americans living on under $4 a day decreased from 45 percent to 25 percent. The Latin American population living on $2.5 per day fell from 28 percent to 14 percent.
- The falling poverty levels in Latin America can be attributed to improved public policy. Latin American governments created conditional cash transfers (CCT), which substituted subsidies for money transfers for the poor who invested in human capital beginning in the late 1990s. As a result, child attendance in schools has risen and families have more food and more diversity in diets.
In 2010, the middle-class population exceeded the low-income population for the first time in the region. However, with one-fifth of the population still in poverty, there is much work to be done.
– Ashley Leon