The Costs of Inequality in Latin America: Lessons and Warnings for the Rest of the World

Description

From the United States to the United Kingdom and from China to India, growing inequality has led to social discontent and the emergence of populist parties, also contributing to economic crises. We urgently need a better understanding of the roots and costs of growing income gaps. The Costs of Inequality draws on the experience of Latin America, one of the most unequal regions of the world, using historical examples from different countries to demonstrate how inequality has hampered economic growth and contributed to a lack of good jobs. Across the region, the wealthy have faced limited incentives to move into new sectors and the poor have not had enough resources to invest in new projects. In fact, low growth, exclusionary politics, violence and social mistrust have reinforced inequality, generating various vicious circles. Latin America thus provides a disturbing image of what the future may hold in other countries. Cover page Halftitle page About the author Title page Copyright page CONTENTS ACKNOWLEDGMENTS Chapter 1 INTRODUCTION: LESSONS FROM THE LAND OF INEQUALITY Inequality is Growing in Developed Countries. . . and it is Even Higher in Latin America Exploring Inequality Th rough Case Studies The Book’s Arguments: The Economic, Political, and Social Costs of Inequality How Do We Move from Here? Some Latin American Lessons The Rest of the Book Chapter 2 LATIN AMERICA: ALWAYS THE MOST UNEQUAL REGION ? The Most Unequal Region of the World? It’s About the Rich, Stupid! Always Unequal? No Longer an Exception: Growing Inequality in Other Parts of the World Chapter 3 THE ECONOMIC COSTS OF INEQUALITY A Historical Excursion The Problem of Education Today Inequality Limits the Opportunities to Create More Dynamic Economies The Difficulties of Taxing the Elite Income Inequality and Financial Crises From the Economy Back to Inequality From Latin America to the Rest of the World Chapter 4 THE POLITICAL COSTS OF INEQUALITY The Uncomfortable Coexistence of Democracy and Elite Power The First Wave of Populism as a Response to the Democratic Deficit Authoritarian Breaks as Extreme Elite Responses Into the Present: The Limits of Democracy and a New Populist Response From Politics Back to Inequality Back to the Present Chapter 5 THE SOCIAL COSTS OF INEQUALITY The Most Violent Region in the World Divided Lives, Private Spaces Mistrust in Each Other and in Institutions Racism and Discrimination: Cause and Consequence of Inequality From Violence, Social Segmentation, Mistrust, and Racism Back to Inequality From Latin America to the Rest of the World: Some Warning Signs Chapter 6 LATIN AMERICA ALSO PROVIDES POSITIVE LESSONS Latin America as a Hotbed of Ideas The Originality of Latin America’s Social Movements Policies: Lessons from an Unexpected Reduction of Inequality in the 2000s Chapter 7 AND NOW WHAT? HOW TO FIGHT INEQUALITY IN LATIN AMERICA AND BEYOND The Latin American Experience Demonstrates how Difficult the Fight Against Inequality is The Many Policies Available to Reduce Inequality Policies Without Politics Will Never Work Conclusion NOTES INDEX