Inequality fear in Latin America

Inequality is probably the greatest risk to Latin America according to the latest Latin America@Risk report from the World Economic Forum. Interestingly the report seems to express as much fear about perceived inequality as actual inequality. To quote the press release on the document:

“Perhaps the region’s greatest ongoing concerns are social and economic inequalities – which remain the most significant in the world. Globalization continues to drive both real inequalities, via income stratification within the region, and perceived inequalities, as local populations observe fast growth elsewhere. Many Latin Americans continue to suspect that global prosperity is leaving them behind, a perception seemingly resistant to decreases in absolute poverty. Political reform, the encouragement of small and medium enterprises and, crucially, education, remain the region’s best mitigators of inequality-driven populist backlash.”

The report echoes a discussion organised by the Organisation of American States held earlier this year. See my 13 March post.