Santo Domingo. – Latin America still faces major challenges in terms of inequalityespecially for the “uncontrolled increase” of the wealth of billionaires. The Dominican Republic does not escape this reality, where the 1% of the richest -100 thousand people-, concentrates income equivalent to that of 8 million individuals.
The statement corresponds to the economist and Oxfam researcher, Rosa Cañetewho regretted that this economic growth is not reflected equally in the poverty reductionwhich aggravates social disparity.
“How is it possible that the rate at which the concentration of wealth grows is so high and that this does not have a similar rhythm“For example, in poverty reduction?” the economist questioned when presenting the report. “Wealth without control, democracy at risk”during an interview on the program El Día, broadcast by Telesistema.
Cañete indicated that in the region there are still 160 million people in monetary poverty situationthat is, they do not even have the income to be able to have a decent life. Meanwhile, some 62 million live in extreme poverty and they barely manage to cover their basic food needs.
According to the economist, this situation generates a polarization intolerable socialwhich can facilitate the advancement of antidemocratic forces and anti-rights in some countries.
An aggressive system
For Cañete, another factor that aggravates inequality in the region is the tax system, which he defined as aggressive, due to its effects on the low-income population and because the greatest tax burden does not come from the concentrated wealth.
He assured that in countries of Latin America The poorest 50% allocates 45% of their income to paying taxes, while the richest 1% contributes less than 20%.
For this reason, the researcher urged the authorities to implement a new fiscal pact that fairly burdens the wealth and capital income.
In the report, Oxfam also argues that billionaires of the world increased their wealth combined by 81% since 2020, so they now enjoy greater political and media power.
The agency stressed that “this imbalance perpetuates elites who buy political influence and reproduce inequality for generations, conditioning public policy decisions and limiting the resources that could be allocated for the benefit of the majority.”
