Programmes and appeal 2008-2009

Americas: Positive economic data hides the world's highest inequality index

The Americas zone is truly one of contrasts. Whilst the region has positive economic indicators overall, it also has the highest inequality index in the world.

The challenges to development in the Americas will not disappear as long as the underlying causes persist. Poverty, inequality, the inadequate distribution of land and use of soil and natural resources, a lack of employment opportunities, inadequate social protection and economic practices that are contrary to sustainable development combine to stifle true progress.

In 2006, of the 550 million people in Latin America and the Caribbean, 205 million were living in poverty. Of these, 79 million people were living in extreme poverty or were homeless. There are, however, differences between the various regions. In Uruguay and Chile, the poverty rate is lower than 20 per cent, but in Bolivia, Guatemala, Nicaragua, Paraguay and Peru, it exceeds 50 per cent, and in Honduras, it has reached 75 per cent. Clear data about poverty rates in Haiti are not available, but the situation there is the worst in the region.

There have been good advances in poverty reduction in countries like Venezuela, Argentina, Colombia, Ecuador and Peru. This contrasts sharply with an increase in poverty rates in countries like Bolivia, the Dominican Republic, Costa Rica and Uruguay.
The geographical characteristics of the continent display an extremely rich diversity as well as very high vulnerability to natural hazards. In South America, the Pacific coast is an area dramatically exposed to seismic and volcanic activity. The Andean heights, densely populated in Bolivia and Ecuador, have major cities settled in the very active and fertile volcanic zones.

In the tropical region, Venezuela and Colombia are frequently affected by hurricanes and Brazil and Peru by heavy rains. In the plains of the Atlantic coast, both floods and droughts are common. There are also desert zones in Chile, Argentina, Bolivia and Paraguay, with extreme temperatures and flash floods.

Central America’s major cities tend to lie in high-risk areas prone to natural disasters. All Central American countries are vulnerable to hurricanes, flooding and mudslides. Some countries like Nicaragua, El Salvador and Guatemala are also subject to strong volcanic and seismic activity.

The Caribbean region is exposed to extremes in weather and is commonly hard hit by hurricanes. The Caribbean islands also lie in an active seismic zone.

The Americas have seen great growth in the urban population with unplanned housing development. This has resulted in an increase in the number and volume of illegal and informal settlements, the proliferation of slums, worsening housing conditions and overcrowded households – all of which puts increased pressure on public services.

1. All figures are in thousands of Swiss francs (CHF).

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Complete document: Programmes and appeal 2008-2009 (28.7 Mb, 88 pages)	Chapter 3: Snapshots of the Red Cross Red Crescent in action in 2007 (24.2 Mb, 40 pages)	Americas: Positive economic data hides the world’s highest inequality index (477 Kb, 2 pages)