Poverty is the lack of or inability to afford the basic human needs. The needs include nutrition, shelter, clean water, health care, clothing, education among others. Compared to worldwide averages, Latin America is among the poorest of the poor. Most of its population lives in absolute poverty. Up to 70% of the population in South America lives in cities. Research has revealed the great variation in Latin America societies. In 1970, up to 40% of all households in Latin America lived below the line of poverty. Countries like Argentine, Brazil, Colombia and Peru 62% of households lived at starvation level. Poverty is more severe in the countryside especially on households that depend on agricultural sector.

In Latin America, poverty is a structural problem. It began in the days of colonialism when a small group was the upper class who owned large amounts of land (UNRISD Report, 2010). In 1930s, the elite gained political and economic power. They possessed great wealth but were not concerned with the inequitable distribution of property. This has led to a huge difference between the minorities who owns everything and the majority who owns only there labor and lives. In the 80s, Nations like Venenzuela, Chile, Panama, and Uruguay had large unemployment figures. The situation got worse. Latin American countries began to experience political change but its cost was so high that the available social structures were not able to support the poor. This caused economic instability hence escalating poverty levels. Large slums began to emerge the problematic nature of poverty is difficult to solve. Neither the government nor non-governmental organizations had solutions. The development of urban centers led to poverty concentration. Today, there are up to 240 million people living with less than one U.S. dollar per day. In rural areas, lack of food, inadequate health centers and lack of educational facilities are the main problems. In Urban centers, unemployment and lack of regular and good paying jobs is the main predicament. Low-income jobs that last for a short term with no social security have made the situation worse.