Poverty Rate is lowest in 20 years according to UN Report. 1990-2010, the poverty rate decreased from 48.4 per cent to 31.4 per cent, while the rate of indigence – or extreme poverty – fell from 22.6 per cent to 12.3 per cent. It is a continuing trend including in rural areas– See Film Report: “Rural Poverty” - diplomaticallyincorrect.org/films/movie/rural-poverty/25999 Public spending levels are key factor that has allowed the continent to continue to grow despite the global economic crisis. The decline in both rates is mainly due to an increase in wages, according to the latest report by the Economic Commission for Latin America and the Caribbean (ECLAC). Public money transfers were also a contributing factor, but to a much lesser extent. Report predicts that South America/Caribbean will close this year with 174 million people living in poverty compared to 177 million in 2010. Peru, Ecuador, Argentina, Uruguay and Colombia led the positive change. Nonetheless, the region remains the most socially unequal as ranked globally. Read: - diplomaticallyincorrect.org/films/blog_post/latin-americacaribbean-remains-most-socially-unequal-region-un-by-ambassador-mo/27809 Food Prices & Lack of Welfare Safety Net Countering Positive News: The report also forecasts that the poverty rate will continue to drop in the next year. However, it states that the indigence rate may have slightly increased (up to 12.8 per cent) because of the rise in food prices. The report reveals that public spending, and in particular social expenditure, received a significant boost in most countries over the past 20 years. Public spending helped counter negative impact where perhaps fiscal austerity had made things worse. (Read: - “Latin America/Caribbean Economic Outlook IMF” - diplomaticallyincorrect.org/films/blog_post/latin-americacaribbean-economic-outlook-imf-october-2011-by-ambassador-mo/36053 However, Alicia Bárcena ECLAC Executive Director warned that progress is threatened by gaps in the productive structure of the region and by labor markets without social protection. Only four out of every 10 workers with formal work are enrolled in the social security system, with a large majority of older persons, women, and workers in rural areas being left out of its benefits. See Film Report: - “Antonio Banderas End Poverty” - diplomaticallyincorrect.org/films/movie/antonio-banderasend-poverty/25202 By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect”

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