Chile is currently struggling with its finances and education system. A public charity called Hogar De Cristo conducted a survey concluding that 58 percent of Chileans found that a lack of opportunities and education were the leading causes of poverty in Chile.
This recognition has shown that poverty in Chile, as well as poverty in general, is multidimensional rather than solely related to a lack of money. In addition to those mentioned above, Chileans accredit their poverty to laziness, addictions, lack of state support, abandonment and disease.
Poverty in Chile has a fairly low percentage of 14.4 percent, which is lower than the United States. However, Chile’s problem lies in the country’s high rates of income inequality: and this alone has driven around 10 percent of people into poverty.
The inequality also reverts back to the poor education systems. There are approximately 75,000 Chilean children who do not attend school. The number of uneducated closely correlates with those living in the deepest poverty.
At first glance, Chile’s economy appears stable. In fact, in 2011, Chile was even voted as the 44th country for highest human development rates by the United Nations. These rankings were achieved by collecting the national averages, meaning that this can hide the truth about the country’s inequality.
In truth, 75 percent of growth out of 8.4 percent went to the rich, and only 10 percent went to the poor. This information is not clear in reports about the nation. The world acknowledges Chile as a developed country, but only 20 percent have incomes matching those of a developed country. The rest, what is hidden, exposes the true extent of poverty in Chile.
The Chilean economy is reliant on copper prices. Chile’s GDP rises when prices go up, but this alone does not create jobs that lead to prosperity. The truth about poverty in Chile shows that the GDP growth does not always benefit the majority of people.
In order to reduce poverty in Chile, national and international education reform advocates suggest significantly increasing expenditures in education. The goal would be to produce quality institutions and in turn, reduce poverty. Some economists even suggest a change in tax rates, because the low tax rates are one main reason why inequality has not been reduced. By fixing the tax problems, Chile could solve issues like the poor education and poverty significantly.
– Katelynn Kenworthy