Behind Latin America's Troubling Income Gap

Byline: Marcela Sanchez

Some images linger in the mind forever.

Earlier this year as I walked along the streets of the well-off Ipanema district in Rio de Janeiro, I noticed a poor woman and her boy sitting on a sidewalk. They clearly relied on the charity of others, plying pity for a few coins. But at that moment, they were mother and child, consumed with one another, as if their shared love made them forget why they were there that morning.

To his great joy and to my surprise, the woman lifted the boy into the air, his elated face unconscious to either his poverty or the fact he had no legs. And so they played until a stranger approached and offered money. Both smiled in gratitude, somewhat surprised by the interruption of their simple bliss.

At the time I couldn't help thinking how this charitable gesture would do nothing to change their lives, particularly the boy's, in a world where his disability would most likely close the few doors of opportunity available even to the able-bodied poor of in Rio.

And while a host of economic indicators suggest that an economic recovery for Latin America began this year, it is these jarring, high-contrast Brazilian snapshots -- the woman, the child; the rich, the poor -- that tell the most discouraging story about the region this Christmas season: Latin America has the greatest disparity between rich and poor in the world.

Forget for the moment that these inequalities have spawned protests from La Paz to Caracas and San Salvador. Never mind, for now, what role Washington and other capitals in the developed world could, would, did or did not play. Focus instead on those men and women of Ipanema or the zonas rosa or other exclusive districts in Latin American cities who live with stubborn indifference to such disparities.

It is their wealth, after all, that makes Latin America's inequalities second to none in the world. And the wealthy should act in a way that recognizes that true social responsibility requires more than a simple handout now and then.

For years, Latin Americans have equated -- actually relegated -- philanthropy and volunteerism to Christian charity. In such a deeply religious region, where the church remains ever popular, a culture of giving is alive and well. The woman from Ipanema and her boy could probably find food at a local church, and some toys, too.

But that sort of welfare will never break the injustice of wealth disparity. However, more organized, systematic and strategic giving is the only rational way to this end.

Still, the number of people dedicated to nonprofit activities in Latin American countries is below the average among 35 countries tallied by Johns Hopkins University. Mexico, in fact, is at the bottom of the list with less than one-half of 1 percent of its work force in nonprofit occupations, ranking lower than Pakistan, Romania and Uganda.

Add to that the lack of governmental incentives -- i.e. tax breaks -- and a general perception that non-governmental organizations and private foundations lack accountability or defend questionable interests, and you find an environment in Latin America that is not conducive to the kind of strategic giving that could help make a difference in inequitable societies.

There are a few organizations trying to change the way Latin America gives. In Brazil, for instance, Instituto Ethos, founded in 1998 by a group of 11 business people, includes today 100 companies that are contributing to President Luiz Inacio Lula da Silva's zero hunger program. Harnessing the compassion and resources of many, these business leaders are dedicating time and energy to promoting minimum-wage initiatives and first-job assistance.

In Colombia more than 90 businessmen and women are members of a foundation that works side by side with local and national educators to improve basic education. More than their money, they are providing expertise and demonstrating how administrative prowess can improve schools. In other words, by giving of themselves they are hoping to make lasting contributions to their communities, as an investment that will prove profitable as the gap between rich and poor narrows.

That is perhaps why the image of mother and child comes back, hauntingly, this holiday season. Back on that street in Ipanema, I retraced my steps and pulled from my pocket some folded bills to place in her hand. The mother smiled. I smiled back, masking the discomfort inside as I realized at that moment I had taken the easy way out.

Marcela Sanchez's e-mail address is desdewash@washpost.com.

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