One out of three Latin Americans belongs to the middle class

Overcoming poverty and the growth of the middle class are relatively recent and increasing phenomena which may permanently modify the political, social, and economic relations under which societies are governed, not only because the growth of incomes and consumption capacity can boost economic development, but also because the emergence of this social class is usually associated to changes in values and preferences which may lead to social transformations.  

In the past thirty years poverty was reduced at a global level, boosting the growth of the vulnerable and intermediate segments, although the less affluent class continues to represent two out of three people at a global level. 

Latin America has also participated of these changes, especially in the past decade. In 2010, almost 200 million people, that is, one out of three Latin Americans, belonged to the middle class, although 37 percent of the population continues to be vulnerable and may return to poverty.  

This new distribution of income in Latin America promises to reconfigure the scenario and planning of public policies in the region in coming decades, as governments will have to face a dual challenge:  

• Offer support networks in education, health, and social security for the vulnerable segments of the population, so they do not go back to poverty. 
   
• Promote economic development that may lead to the growth of the middle class, and the change in their preferences and consumption needs. In this respect, creating incentives for the accumulation of human capital, promoting financial inclusion, strengthening the social support networks, and stimulating reforms to increase competitiveness are just some of the steps that are visualized as keys to guarantee successful results for this process.   

The study "La creciente pero vulnerable clase media de América Latina. Patrones de expansión, valores y preferencias" (The growing but vulnerable middle class in Latin America. Expansion patterns, values, and preferences) analyzes the possible implications of these changes on the values and preferences that characterize the middle class in the region.