Latin American Economic Outlook 2011: How Middle-Class Is Latin America?

This year’s Economic Outlook focuses on those in the middle of the income distribution in Latin America. In fact, this report shows that, contrary to expectations, in Latin America this group is still economically vulnerable, few have university degrees and many work in informal employment. The report tackles policies such as social protection and education that promote upward mobility, and underscores the importance of fiscal policy as a tool to finance the required reforms and programmes that can engage the Latin American middle sectors in a renewed social contract.



This is a "middle class" quite different from the group that became the engine of development in many OECD countries. In Latin America, what are the economic characteristics of these vulnerable middle sectors? How do they perceive inequality, public policies and democracy? How can public policies protect the livelihoods of these middle-sector households? These questions guide the Outlook to discuss why and how upward mobility should and can be promoted, and how safety nets can be put in place to protect the most vulnerable segments of people within those middle-income groups, as well as the poorest and most disadvantaged households in the economy at large.

Table of Contents
Preface
ACRONYMS AND ABREVIATIONS
EXECUTIVE SUMMARY
Part I: Macroeconomic overview
Part II: How midDle-class is latin america?
Chapter 1 Middle Sectors and Latin American Development
Chapter 2 Social Protection and Labour Informality in the Middle Sectors
Chapter 3 Education, Social Mobility and the Middle Sectors
Chapter 4 The Middle Sectors, Fiscal Policy and the Social Contract