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WEEKLY NEWSLETTER
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Chile
Index
Latin America has traditionally had one the most
unequal income
distributions in the world. Chile has not been an
exception to this
rule. Although data are scarce, existing evidence suggests
that
during the years of military rule income inequality
increased
significantly in Chile. It has been estimated that in 1985
about 25
percent of households lived in
extreme poverty (see
Glossary), and
that 45 percent of households lived below the poverty
line. During
the 1990-93 period, the incidence of poverty declined
substantially. In late 1993, the Ministry of Planning and
Cooperation estimated that between 1990 and 1993 more than
1.3
million people moved out of poverty. This was the result
of a
combination of factors: the rapid rate of growth
experienced by the
economy; and the implementation of social programs aimed
at to the
poorest groups in society.
The emphasis on social programs aimed at certain groups
began
in the mid-1970s. This approach seeks to deliver social
programs
directly to the poor, avoiding leakages to middle- and
upper-income
groups. These programs have been largely successful. It
has been
reported, for example, that 90 percent of the food
distributed
through the preschool nutritional programs went to the
poorest
three deciles of the population in the mid-1980s.
Moreover, more
than 80 percent of the food has reached the rural poor.
Since the
basic housing program was reformed in the early 1980s,
more than 50
percent of the subsidies have been reaching the poorest
three
deciles of the population. In 1969, before the system was
reformed,
only 20 percent of subsidies were received by the poorest
30
percent of the population.
Data as of March 1994
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