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Latin America and the Caribbean in a development trap: rethinking redistribution to address inequalities

November 21, 2023

IAI and ODI hosted an ETTG webinar as part of a project on EU-Latin America relations. The focus of the discussion revolved on rethinking the EU-Latin America relations to address growing inequalities.

The event highlighted the need for a new approach to distribution, emphasising policies that foster equal opportunities and social mobility, in order to ensure that the green and digital transitions are accompanied by a social transition as well. Participants also explored the role of the EU and European countries in supporting inequality reduction efforts in the region.

The webinar brought together leading institutions such as the European Commission, the European External Action Service, the World Bank, the Inter-American Development Bank, Rome-based embassies as well as experts and think tanks.

The discussion emphasised the need to address the systemic nature of inequalities in the region, as well as their interaction with political, social, economic, cultural and geographic considerations. Progressive and effective tax systems were identified as a key element for this, for which understanding and addressing the link between tax compliance and other phenomena, such as trust in institutions and violence, becomes essential. Other potential efforts that were highlighted included leveraging the lessons learnt from existing social policy efforts – particularly conditional cash transfers – and tackling the political challenges associated with redistribution.

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