Inequality is therefore not the result of policies. Inequality in Latin America is not a recent phenomenon. The region has been highly unequal since the colonial era and the evolution of institutions and power structures has only perpetuated the cycle of inequality. Nevertheless, this does not mean that his is a deterministic process, for there are intra-regional differences. It is clear, however, that Latin America is trying to achieve in a short period of time changes that in the developed countries historically took place throughout centuries.
Inequality can be a barrier to economic growth.
As the experience of East Asia demonstrates, more equal societies have faster rates growth. Comparatively speaking, East Asia is more equal than Latin America in terms of their land distribution, income levels and human capital. The additional return in every year of education for Latin America is two to three times higher than in the United States and Europe. East Asia can credit much of their growth to their gains in human capital. Nevertheless, the unequal distribution of income in Latin America also affects the distribution of education.