Inequality in the region has existed since the colonial era and the concentration of wealth has persisted, due in large part, to the reproduction of power structures that perpetuate this inequality. Reducing inequality in the region, mainly through greater efforts in the area of education, remains crucial for efficient and equitable economic growth. Latin America is the most unequal region in the world. Recent figures from Brazil indicate that the bottom 50 percent of all households in the country obtain about 13 percent of total income. This is the same percentage received by the top one percent.
Wage inequality is the central story in the region.
In the 1990s the situation did not improve, nevertheless, it is fair to say that market reforms did not necessarily make the situation worse. 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.