By Benigno Lopez, Vice President for Sectors and Knowledge, IDB
When discussing life after the pandemic, many express a longing to return to a pre-Coronavirus world. But instead of dreaming of the status quo, I hope Latin America and the Caribbean (LAC) advances towards a better and “new normal”, born under the pressures of COVID-19, and far more equitable and collaborative than before. Critically, multilaterals will need to work together more than ever to help make this happen.
Bringing about a better, post-pandemic future will not be easy. LAC has been hit hard by the crisis. According to recent estimates, the region saw a 7.4 percent contraction of GDP in 2020, with 34 million people losing their jobs and at least 40 million falling into poverty. To further complicate matters, the region grappled with pressing challenges even before the emergence of COVID-19. Economic growth and productivity have been lagging for some time. And our region is the most unequal in the world: the richest tenth of the population captures 22 times more income than the bottom tenth, while the richest 1 percent captures 21 percent of the income in the entire economy — double the average in the industrialised world.
As the pandemic spread, so have concerns over inequality. References to inequality on social networks have multiplied by 10 since March 2020, according to our own digital tracking tools.