26 Jun 2014
George Gray Molina, Chief Economist
“The consumption boom” is concentrated in the upper echelons of society. Photo: Mauricio Martínez/ UNDP in El Salvador
Slavoj Zizek tells a joke that was popular in Eastern Europe in the sixties. A man enters a grocery store and yells, “Surely you don’t have any soap, right?” The shopkeeper replied halfheartedly: “No, sir, we’re the shop with no toilet paper; the shop with no soap is further ahead.” In Latin America, something similar is happening in discussions on progress and development, and we usually think we are the society that is “missing something”, or is “incomplete”. We are interested in exploring the particularities of what’s desperately needed, the necessary data that will enable us to better visualize our unsustainable pattern of consumption. In other words, to examine the aspects of multidimensional poverty that we still have not been able to define. A couple of weeks ago, the Economic Commission for Latin America and the Caribbean published new data on consumption, spending and borrowing. The initial findings are as follows: “The consumption boom” is concentrated in the upper echelons of society. The richest 20 percent of Latin Americans accounted for roughly 50 percent of all household spending. The poorest 20 percent accounted for about 7 percent of total household spending. Furthermore, the findings show a transition in the nature of spending.