Are Latin American Countries facing the 21st Century from a different political and economic prospective, or will the old system remain? Like most other less-developed regions of the world, almost all Latin American countries are characterized by: Stagnant or declining economic growthB. Poor infrastructuresC. Exuberant levels of povertyD. Large income gaps between the rich and the poor (inequality)E. Persistent unemploymentF. Inadequate levels of education, health, and housing. This avalanche of negative points summarizes problems that have persisted in Latin American countries for decades. In addition, as usual, the group in these countries to pay the highest price is the poor. However, what factors have been the main causes of persistent high levels of poverty, and high-income differentials in Latin American countries? Furthermore, just how serious is the situation of the poor today in each individual Central and South American country? Moreover, will income inequality and poverty levels diminish as we get closer to the 21st Century? In essence, the major factors working against decreasing the existent levels of poverty, and bettering the income position of the poor in relations to the rich are 1.) The inherited complex political structure 2.) The adopting of protectionism policies in favor of the elite, and 3.) The increases in foreign dependency that these countries both possess and have, regarding the last factor, engaged in. The political arena of Latin American countries has been one of constant government instability, great tension, and social turmoil. In fact, countries such as Nicaragua where revolutions took place and countries such as Chile, Cuba, and Panama where dictatorships persisted had only considerable increases in economic growth until the early 90s, which signaled the end of revolutions and dictatorships. For instance, Nicaragua went from a 2.0% during the 1980s to a positive 0.5% annual economic growth ...
