Crisis In Chile, Inequality In Income Distribution

Crisis in Chile, inequality in income distribution

Introduction

To begin this essay, it is necessary to take into account the background that gave way to the national contingency. Therefore, we return to October 18 of this year, exact date of the beginning called "Social Awakening". On that day in the capital of our country there were massive evasions of the payment of subway transport, causing mobilizations and repression from the country’s police forces. The general discontent was "in silence" and is based on inequality, a problem that has remained for decades. These inequalities are seen different areas, such as the access and quality of public education, access and quality of housing, water privatization, university debts, the precariousness of public health, the high costs of basic services, theunequal income, among other things.

Developing

All the aforementioned issues are part of the most important social demands and most of them are based on resources, which seem not enough to be enough, since there are deficiencies that are evident and that demonstrated within the contingency. Therefore, the purpose of my essay is to respond why inequality, explaining it from how the distribution of income resources in Chile influences it.

Then, as a result, I ask the following question: Is the inequality of the distribution of income in Chile one of the triggers within the framework of national contingency?

This is a question that can be answered by observing the data delivered in the last CASEN survey, corresponding to the 2017.

In this the data says that more than a million and a half people live in a situation considered precarious, taking into account the shortage of income. Along the same lines, it was also found that the inequality of income distribution in our country is scandalous, since 10% considered the population with more wealth, gain 39 times more than the poorest 10% in our country. This assertion also joins the solid inequality that has been increasing in recent decades in developing countries, in which ours is not exempt. (Fuentes, 2018)

“Income inequality is a worldwide problem that requires global solutions. These include improving the regulation and control of markets and financial institutions and promoting assistance for direct development and investment for the regions that need it most ”.

(United Nations Development Program, 2019)

In addition, to highlight the inequality that is generated through the distribution of income, in the Social Development Report, it is specified on the social situation in Chile and an analysis of the incidence of the distribution of income in poverty is made. In it, it is specified what are the percentages of the population living in extreme and not extreme shortage. In summary, if it is analyzed by type of home, this situation affects in the majority households where the family holder obtains an income under the line of poverty. (Ministry of Social Development, 2017)

Following the above, in May 2018, a report from the Ministry of Social Development on the estimation of the Basic Food Basket (CBA) was issued, and the Poverty Line. The latter, to date, was set at $ 422.911 and extreme poverty at $ 281.941. However, after the contingency, it was decided to add an non -taxable amount of $ 49.000 to minimum salary corresponding to $ 301.000. (CNN Chile, 2019) Considering previous figures and the lines with which poverty and inequality in our country are measured, it is more than clear that these do not guarantee the quality of life, nor the improvement of it, since these valuesThey are very low with respect to the high economic standards of our country.

Chile is present in list made by the World Bank group (organization that studies the world economy), in the number 7 position among the most unequal countries in the world. This group studies the economy through the Gini coefficient. In this, values between 0 and 1 are delivered, with 0 those countries are cataloged with perfect equality, that is, that the inhabitants receive the same income and 1 corresponds to those who have extreme inequality. The OECD, organization responsible for conducting this research, placed Chile is the country with the highest level of inequality, reaching a Gini coefficient of 0.47. (Organization for Economic Cooperation and Development, 2015)

conclusion

Finally, these reasons validate the assertion that, without a doubt, the distribution of income strongly influences the social crisis that Chile lives to this day. Personally, I agree that in order to combat the consequences of contingency it is necessary. (UNDP, 2017)

This work is necessary, so that progress reaches us all equally and thus facilitate the process in which the development of the economy grows, so that they also grow all in the country. Through the indicators named in this essay, I wanted to establish a dimension of inequality, although it is clearly covers many more areas in our society.

References

• CNN Chile. (November 6, 2019). CNN Chile. Obtained from Economics, Crisis in Chile: https: // www.CNNCHILE.com/Economia/salary-uncleo-minimo-governor-no-calegara-300-Mil-Liquidos_20191106/
• Fuentes, r. (August 21, 2018). Casen 2017, the scandalous inequality in income distribution. Uchile newspaper. Obtained from https: // radio.Uchile.CL/2018/08/21/CASEN-2017-LA-ESCANDALOSA-INEQUIDAD-IN-LA-DISTRIBUCION-DEL-ENGRESO/
• Ministry of Social Development. (2017). Social Development Report. Santiago: Ministry of Social Development.
• Organization for Economic Cooperation and Development . (2015). All together, why reduce inequality benefits us? . Oedc.
• UNDP. (2017). Unequal. Origins, changes and challenges in the social gap in Chile. Santiago de Chile: Uqbar Editores.
• United Nations Development Program. (2019). OBJECTIVE 10: Reduction of inequalities.