[Cuba] Economic Growth not Enough to Ease Poverty

From Prensa Latina

Economic growth is not enough to eliminate poverty, confirmed the British non-profit organization New Economics Foundation in a report published here.

The Foundation´s study affirms economic growth benefits those people not living below the poverty line and states that 166 dollars in growth are needed to reduce one dollar of poverty.

The report goes on to say that economic growth has environmental consequences that hurt the poorest population. The Foundation recommends that the most effective way to reduce poverty is to redistribute income among nations and inside these.

The study suggests the creation of international taxes in items like air transportation and the provision of universal free health and education services.

The Foundation´s conclusions differ greatly from official circles contending that economic growth and market economy are essential to reduce poverty.

Across the Atlantic, Ines Bustillo, head of the Washington representation of the UN Economic Commission for Latin America and the Caribbean (ECLAC) supported the New Economics Foundation claim in statements to the media.

In spite of having grown in Gross Domestic Product (GDP) terms, "poverty is still extremely high (in Latin America), as 40.6 per cent of the population lives below the poverty line and of these, 16 per cent live in extreme misery."

"There are challenges ahead like a significant reduction of poverty and an improvement in income distribution," said Bustillo.

Also, UN Development Program (UNDP) figures show that Latin American nations have the highest inequality in income distribution of the planet, even beyond several African states included among the least developed countries.

Enrique Ganuza, UNDP chief economist said that for Latin America to achieve the UN Millenium goals, which include reducing poverty by half in 2015, the region "must quantify the needs of economic growth and reduce inequality."

The expert warned that even if the 90s growth rates continue in Latin America, only seven of 18 nations will reduce by half their poor population by 2015, while another five will see a rise in this indicator.

It is no coincidence that seven countries in South America have included poverty alleviation as a priority of their government agendas.