Oxford Development: The Growing Costs of Inequality: Lessons from Latin America

'Oxford Development Talks' is a new talk series showcasing the best of Oxford thinking on international development, and making it accessible to a wider general public.
From the United States to United Kingdom and from China to India, growing inequality has led to economic crises, social discontent and the emergence of populist parties. The current pandemic is likely to make things worse, as unemployment increases, and informal workers struggle to make ends meet. We urgently need to better understand the roots and costs of growing income gaps. To do so, my presentation will draw on the experience of Latin America, the most unequal region of the world and the one where the wealthy are most powerful. I will focus on the economic impacts of income concentration and also discuss some vicious circles that contribute to perpetuating the problem. Yet not all the lessons coming from Latin America are negative and I will finish my presentation with some reasons for hope.
Diego Sánchez-Ancochea is Professor of the Political Economy of Development and Head of Department at ODID. He specialises in the political economy of Latin America with a particular focus on Central America. His research interests centre on the determinants of income inequality and the role of social policy in reducing it.