The Economic Commission for Latin America and the Caribbean (ECLAC) has released its latest report highlighting a slight reduction in poverty across the region. With a poverty rate of 27.3% in 2023, this marks an improvement from the pandemic's most challenging years. The report, titled "Social Panorama of Latin America and the Caribbean 2024," also notes a decrease in extreme poverty by 10.6 percentage points.
Despite these advancements, a stark income inequality remains, with over 172 million people in Latin America and the Caribbean unable to meet their basic needs, the organization reported in a press release. Additionally, 66 million people endure extreme poverty, lacking access to even the most fundamental food necessities.
Deep-Rooted Inequality Remains a Challenge
While poverty has declined from its peak in 2020, inequality continues to be a significant issue, disproportionately affecting women, children, and rural areas where poverty rates are particularly high. ECLAC points out that poverty impacts women more than men of working age and is more prevalent in rural regions compared to urban areas (39.1% versus 24.6%).
Cuba's Struggles Amid Regional Growth
In this setting, Cuba emerges as one of the countries with the lowest growth rates in the region. In 2023, Latin America and the Caribbean experienced a modest per capita GDP growth of 1.4%, yet Cuba's performance was the poorest at 0.8%. Meanwhile, Haiti saw a growth of 3.1% and Peru 1.4%. ECLAC explains that countries like Panama (5.9%), Costa Rica (4.5%), and Paraguay (3.5%) led in growth, whereas Argentina, Cuba, Haiti, and Peru faced declines.
Call for Enhanced Social Protection
The enduring extreme poverty and the vulnerability of the most disadvantaged sectors demand increased investment in non-contributory social protection policies aimed at greater inclusion and eliminating structural barriers to basic welfare services. At the regional level, ECLAC emphasizes that poverty in Latin America remains a pressing concern. Despite progress in countries like Brazil, where non-contributory transfers have been crucial for poverty reduction, efforts have fallen short in eradicating structural inequality.
The report highlights that in countries like Cuba, where social investment has decreased across various sectors, public policies have failed to mitigate the economic crisis's effects, leaving poverty as a significant challenge for inclusive social development. ECLAC urges strengthening social protection systems, particularly non-contributory ones, as essential tools for reducing poverty and enhancing social cohesion in the region.
Cuba's Dire Economic Situation
According to a previous report by DatoWorld, Cuba faces a staggering poverty rate of 72%, positioning it at the top of Latin America's most affected countries. This figure considers parameters such as per capita income, access to health services, social security, nutrition, and housing quality.
The economic crisis in Cuba has worsened in recent years, exacerbated by soaring inflation, food shortages, and a collapsing healthcare system. Poverty in the country is further reflected in the lack of access to essential services and the mounting pressure on families struggling to survive in an environment marked by high levels of social protection deficits.