ABSTRACT
This chapter considers the data and consequences of poverty and inequality in the region and discusses the more commonly understood causes of poverty and inequality in Latin America. It describes the list of public-policy changes that have been used and are evolving to address the issues in the region. For any country, excessive regulation of markets can create adverse consequences. While there is no perfect set of business or labor-market regulations, there are trade-offs, which, if ignored, can cause significant problems. The reduction of poverty in Latin America is dependent on maintaining or improving economic growth. Every country needs a framework to regulate the activities of business and the relationship between employers and employees. In a modern economy, the accumulation of human capital is a critical component of economic growth. All else being equal, the rapid accumulation of human capital increases the rate of economic growth.
