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The crisis
and Latin America…
By: Elson
Concepcion Perez
Havana, Cuba. - The current economic crisis has
plunged nine million Latin Americans into poverty.
The Economic Commission for Latin America (ECLAC)
indicated in its latest report that the above-mentioned
figure amounts to ¼ of the population that
overcame poverty from 2002 to 2008. Those were
years of high economic growth, increased social
expenditures and improved wealth distribution.
The report speaks of 22 % of poverty in the urban
areas of Argentina, Chile, Uruguay and Costa Rica.
In Brazil, Panama and Venezuela it reaches 30%,
while in Colombia, El Salvador, Mexico, Peru and
Dominican Republic it ranges from 35 to 48%.
ECLAC further revealed that the impact of the
crisis is more visible in Mexico and in some Central
American countries. Nevertheless, the poverty
index of the whole region will rise for the first
time in six years.
In the case of Mexico, the reports stress the
acute deterioration of its rural economy as a
consequence of the Free Trade Agreement with United
States and Canada. Mexican rural population and
small and middle size companies have gone bankrupt
as a result of the FTA.
The Aztec nation and Central America as a whole
suffer, in addition to the crisis, the alarming
drop in the remittances sent by their citizens
that work in United States and Europe.
ECLAC executive secretary, Alicia Barcena, affirmed
with slight optimism that despite the chaotic
economic situation in the region, the achievements
from 2002 to 2008 have not been thrown overboard.
However, the increasing poverty demands immediate
action.
The tendency to negative growth resulting from
the current economic crisis will have a particular
impact on unemployment rates and will be detrimental
to all the other social indicators.
ECLAC latest report stressed the urgent need to
redesign social security programs. They should
have long term strategic approaches and measures
to ensure good use of the human capital and secure
the incomes of families and vulnerable groups.
Translated by:Pedro
A. Fanego
(
27.11.2009 3:13 PM
)
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