Less Poverty Across the Region!

Thanks to social protection systems, the proportion of the population living in poverty and extreme poverty has declined in Latin America and the Caribbean.

“The strengthening of social protection systems in Latin America and the Caribbean, in particular non-contributory social protection, is a strategic space for adopting an integrated approach that can have a significant impact on poverty reduction, the diverse causes of inequality, and the low levels of social cohesion in Latin America and the Caribbean and, therefore, on the attainment of inclusive social development,” emphasizes José Manuel Salazar-Xirinachs, Executive Secretary at the Economic Commission for Latin America and the Caribbean.

As stated in the report Social Panorama of Latin America and the Caribbean 2024: The Challenges of non-contributory Social Protection in Advancing Towards Inclusive Social Development, the proportion of the Latin American population living in poverty was 27.3% in 2023, a decline of 1.5% compared with 2022 and of more than 5% compared with 2020. More than 80% of such decline is attributed mainly to Brazil’s efforts – the country is home to one-third of Latin America and the Caribbean’s population – where non-contributory transfers were decisive. For example, the non-contributory pension systems (NCPS) are fundamental to reducing poverty in old age. Indeed, in the last two decades, the coverage of CNPS for people aged 65 and over increased by more than 27%, while poverty among the same people fell by 14.3%. In Latin America, social spending amounted to 11.5% of the gross domestic product in 2023, similar to 2022 numbers of 11.4%.