Building an Equitable Society in Colombia
Colombia’s high level of inequality is a core constraint to economic growth and social progress. The country has one of the highest levels of income inequality in the world, the second highest among 18 countries in Latin America and the Caribbean (...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/undefined/686821635218586591/Main-Report http://hdl.handle.net/10986/36535 |
| Summary: | Colombia’s high level of inequality
is a core constraint to economic growth and social progress.
The country has one of the highest levels of income
inequality in the world, the second highest among 18
countries in Latin America and the Caribbean (LAC), and the
highest among all OECD countries. The disparities in income
across adults grow from gaps that open early in life in
opportunities for high-quality childhood development,
education, and health care services. Inequality in access to
good jobs further amplifies these gaps, making Colombia
among the countries where inequalities are the most
persistent across generations. Longstanding inequality
across regions overlaps with the large gaps in welfare
between Afro-descendants and indigenous Colombians and the
rest of the population. The COVID-19 pandemic has further
amplified disparities and threatens to have prolonged
negative effects, but this is just one of many potential
extreme shocks, including climate change, related
disruptions, that could substantially widen the inequality
gaps. Current tax and transfer policies at best have only a
modest positive impact on these imbalances, so there is
clearly ample potential to improve the redistributive role
of fiscal policy in Colombia. Policy reforms across many
areas could help to chart a more equitable future for the country. |
|---|