Combating Inequality: Is There a “Scandinavian Way” to Reduce Inequality in Latin America?

Abstract

experienced a process of reduction in income inequality between 2002 and 2014, a period in which most other countries experienced an increase. However, since then inequality has started to increase again. The Scandinavian countries are often regarded as models of low inequality, in spite of recent increases. If compared to Latin America, what stands out about Scandinavia is that one has managed to sustain processes of inequality reduction over several decades in spite of political shifts and changing economic conditions. This paper seeks to identify aspects of the interaction between structural factors, policy changes, and strengthening or weakening of change agents, that have led to sustained inequality reduction in the Scandinavian countries (with a particular emphasis on Norway), and discuss their relevance for Latin America.

COVID-19, elites and the future political economy of inequality reduction in Latin America

“…For example, there has been an increase in extortion in the Bolivarian Republic of Venezuela amid the COVID-19 pandemic (De Jesús, 2020). Acts of extortion, whether committed by gangs or groups with military connections, are known to have led to the takeover of small businesses by armed groups (Bull, 2020). Further strengthening of the economic role of military elites is therefore possible.…”

“…Elites are defined as groups of individuals whose control over natural, economic, political, coercive, social, organizational and/or symbolic (expertise or knowledge) resources give them a position of privilege to exert formal or informal influence on organizations and institutional practices (seeBull, 2014).…”

“…This was the case with social conflicts of the 1930s in the Scandinavian countries, which saw the conclusion of agreements between workers and employers that led to a decline in income inequality over the following seven decades. SeeBull (2019).…”