The article examines poverty and inequality as serious long-term and widespread problems in society. Research on poverty has been mainly conducted from the perspective of economics, now the focus has shifted to psychological aspects with an emphasis on the causes and consequences of poverty. The overall economic disaster that COVID-19 will leave in Latin America and the Caribbean remains to be seen, but its impact on social well-being portends a bleak future. After seven years of slow growth, the region's GDP fell 5,3%, the largest drop in a century. According to a joint report submitted by the Economic Commission for Latin America and the Caribbean (ECLAC) and the Food and Agriculture Organization of the United Nations (FAO), the impact of the pandemic could plunge an additional 16 million people into extreme poverty in 2020, resulting in 83,4 million Hispanics will live in complete poverty. These organizations warn that hunger will be the biggest problem facing the region, where 53,7 million people are already surviving severely food insecure. The purpose of this study is to examine the relationship between poverty and inequality as economic categories in the context of their impact on the countries of Latin America. To do this, the authors examined the key factors affecting poverty and inequality, analyzed trends in poverty and inequality in Latin America and the Latin Basin. The article is based on research on poverty and inequality in macroeconomic theory. In particular, the works of Y. Amiel, F. Cowell, T. Buhard, P. Wizard, the study of socio-economic inequality and the fight against poverty – G. Babeuf, I. Bentham, J. M. Keynes, V. Paret, G. Spencer, L. Erhard, K. Arrow, D. Rocardo, A. Pigou and many others are devoted to the problem of inequality. Significant results of studies of poverty and welfare are given in the works of prominent foreign researchers: P. Townsend, A. Sen, D. Sachs, M. Orshan-sky, T. Marshall, F. Hayek, thanks to which the system of ideas about poverty was formed. The importance of poverty and its impact on government discourses, policies and programs has fueled much research on a Latin American scale. Publications on this topic have been rolled out over the past three decades and have created a veritable battlefield. Poverty reduction is a key development challenge facing Latin America and the Caribbean. Inequality is one of the historical problems in Latin America, one of the factors that most paralyzes the eco-nomic and social aspirations of most countries in the region. Poverty reduction can be understood in both a limited and a broad sense. The first involves a focus on programs and projects that target the poor – vocational training programs for low-income people, food stamps, productivity projects in the informal sector, and care for mothers and children in communities that do not have access to this service, etc. These programs are usually funded from so-called emergency funds and social investments, although they may also be specialized activities of the minis-tries or secretariats that make up the “social sector”. On the other hand, the broader definition of poverty reduction includes economic policies and traditional social policies (especially education and health). One of the main ways to solve this problem in the medium and long term obliges countries to move towards a universal basic income, giving priority to families with children and adolescents, and to maintain universal, comprehensive and sustainable social protection systems, increase their coverage as a central component of the new welfare state. A broad and lasting consensus and political commitment are required to make significant improvements in education, health and well-being. Unfortunately, some Latin American coun-tries have serious governance problems that hinder the effective functioning of democratic systems due to fragmentation and lack of policy consensus. For this reason, stability and continuity of economic and social policies are an indispensable element for the development of nations and the progress of peoples.
Inequality, Well-Being and Institutions in Latin America and the Caribbean