Causes of poverty in Latin America

The main causes of poverty in Latin America is the unequal distribution of wealth. In rural areas the peasants are the amongst the poorest people. Other causes is that are interna, conflicts, migration, higher fertility. Though South America has a vast natural resources, it is still the poorest people, because of the injustice and inequality. The effects of poverty are social and political instability, drug addiction and insecurity. Extreme poverty is becoming a threat and can affect global economy. It generates social tensions especially when development policies fail. Latin American countries are amongst producers of illegal drugs. Cocaine production is very high in these nations. Drug trafficking has also has social costs to local communities and national institutions. It causes rampant violence and corruption leading to human rights abuse.