After reading Che Guevara’s The Motorcycle Diaries, the thing that stuck with me most was the extreme poverty and suffering described. It made me wonder if things had improved in South America, and why. So, after a bit of research, I decided to write about each country and how it improved (or didn’t) since Che’s travels.
Argentina: Che’s home and birthplace, Argentina, wasn't really featured in much of the book. Compared to the rest of South America, Argentina had a relatively low poverty rate in the 50's and 60's. In a few instances, the poverty rate jumped up during the great depression, but overall Argentina did okay, poverty-wise, for a South American country at the time. Now, Argentina is doing better than ever. Since just 2001, Argentina has seen great improvements on poverty rates, with extreme poverty being 11.6% in 2001, and now at 4.4%. This was probably because of economic growth, which started around 2003, when Néstor Kirchner was elected as President. Argentina also had a massive growth in foreign currency reserves, partly due to large, expensive soy exports to China. Despite the growth, the largest problem in Argentina now is the police force, or lack of one. A while ago the budget for the police force was cut in half, pushing most cops to take bribes and become crooked. Since then the police haven't been very effective, and crime is at an all time high. Recently citizens have become fed up and started to publicly beat suspected criminals.
Chile: Chile has seen a stable decrease in poverty rates, but inequality is still as bad as ever, with a Gini Index of around 50. The Gini index is a way of measuring inequality, and is made up of many things. But basically, 0 is complete equality, and a 1 would have all the wealth belonging to one person. A score of 50 is not a great one, but for a South American country it’s only a little above average. There are also some major environmental problems, the main one being deforestation. Deforestation causes rapid soil erosion, which happens too fast for the soil to naturally regenerate over time. Soil erosion is actually a worldwide problem, but it affects Chile especially.
Peru: In the last five years, 5 million Peruvians escaped poverty. It has the 8th fastest growing economy in the world, with a growth rate of about 6%. Despite the huge economic growth, there is still a large poverty gap between the urban and rural areas. Like in Chile, inequality is still as bad as ever. Even though the poverty rate dropped from a ridiculously high 50% to 26% in just over 5 years, its Gini index is still at a 48.1. One thing that could be contributing to this is the gold mining. Peru is one of the largest exporters of gold in the world, and around 20% of that gold is mined illegally. Unregulated, illegal mining causes rivers to be contaminated with mercury, and it also causes some deforestation. The miners are often underage, over worked, and abused, all for less than minimum wage. Of course the mining companies and executives want the workers to stay in poverty, so that they will continue working in their mines. And so inequality quickly became a problem, especially in the more poor, rural areas.
Colombia: Colombia has the worst inequality problems in all of South America, and it is only getting worse. Its economy is running off of monopolies, and it is the seventh most unequal country in the world. “The poorest 10 per cent of Colombians pay 8 per cent of their income in taxes, the richest 10 per cent pay just 3 percent”- James Robinson, Harvard Professor. Colombia is just as bad, if not worse, since Che was there. And the drug trade doesn't exactly help either, empowering guerrilla groups and causing further inequality.
Venezuela: Venezuela is the fastest improving South American country. It has the smallest gap between the rich and poor in South America, with a Gini Index of 41. But for whatever reason, when the economy grew, the so did violence. In 2012, it was estimated that 59 people were murdered everyday. That is a lot of people. Compared to other countries Venezuela is still very unequal, but for a South American country Venezuela is fairly equal, despite the murders.
After my research, I found that some countries, such as Venezuela and Argentina, had improved greatly since when Che was there in 1952. But even so, they are far from equal. Compared to other countries in Europe and North America, even the best South American countries don’t compare. Colombia is the seventh most unequal country in entire the world, and no one is aware of any of the inequality in South America. Even though some countries have improved since Che’s adventure, most haven’t. The same South America that inspired Ernesto Guevara to become a revolutionary still exists today, but no one is doing anything about it.