When Latin American countries face economic crises, austerity is often proposed as the solution. Austerity, in turn, frequently means that the poor are called on to make the greatest sacrifices. The rich, on the other hand, are seen as having to be encouraged to save and invest, for that is what will get the economy moving again. The belief is that those benefits will eventually ‘trickle down’ to the poor. But this thinking, says the UN’s Economic Commission for Latin America and the Caribbean (Eclac) in a new report, is outdated and wrong.End of preview - This article contains approximately 730 words.
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