By: Camila Rua / Translated by: Adriana Serrano
Poverty and extreme poverty decreased in 2023, according to the “Statistical Yearbook for Latin America and the Caribbean 2024” published by ECLAC. However, a wide inequality gap remains, as the per capita income of the richest population represents 50.5% of national income. Hence, it is necessary to continue working on territorial development.
Of the last five years recorded by ECLAC between 2019 and 2023, the peak of extreme poverty and poverty took place during the pandemic, with 13.2% and 32.8% respectively. This means that at that time, almost half of the population was living in poverty. Whereas in 2023 both percentages decreased to 10.6% in extreme poverty and 27.3% in poverty.
Extreme poverty and poverty each, decreased 2.6% and 5.5% respectively. The decrease in this percentage implies a change in the situation for people who previously could not meet their basic needs due to lack of resources. While the income of the richest population represents 50.5% of the national income, the income of the poorest population represents 4.8% of it, up to 20 times less.
Therefore, it is necessary to implement territorial development policies and strategies, as this development process seeks to strengthen local capacities, taking into account the realities, strengths, and weaknesses of a territory. This will enable communities to grow economically with equitable income distribution, while preserving the environment they live in.
To achieve this territorial approach to development, it is essential that communities have governance over their territories, sustainable development, economic growth, collaborative processes and structures. According to ECLAC in its report “Sustainable Territorial Development and New Citizenships”, this last element, collaborative processes and structures, is key to territorial development, since people, through collective action, can reduce inequalities.
Yet, all of the aforementioned elements must be sponsored and taken into account in the development and implementation of public policies so that they can be truly comprehensive. An example of public policies for territorial development is the “Comprehensive Plan for the Amazon, 2021-2035” developed by the Government of Ecuador, which seeks to promote a sustainable socioeconomic, cultural, and environmental model in the six Amazonian provinces of the country.
The decrease in poverty and extreme poverty is a significant step forward, but it is not possible to continue in this direction without making changes to those life dynamics that have exacerbated inequalities.
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