Hi Simona Palummo, thanks for the report. Were there 1 or 2 key solutions recommended to help address the income gap? Does the World Bank Group have current projects that could be tailored to mitigate these challenges in Guatemala or similar countries?
Best regards - Bruce
This is an external report and it says that fiscal policy would be an effective tool to reduce inequality and provide a minimum standard of living. However, it also shows that unfortunately fiscal policy "does almost nothing to change the high levels of market income inequality and the ethnic welfare gaps in Guatemala". I don't have the details, but I know the World Bank launched in the past a series of development policy loans in Guatemala to accelerate poverty reduction and reduce inequality, and I'm sure that currently there are projects that can help mitigate these challenges. One of the authors of this report, Nora Lustig, will be speaking at our next PSIA seminar on Colombia's 2012 Tax Reform, which aims at reducing income inequality in the country. I will create a C4D event page soon :-)