Bogota is seemingly a positive example of what restructuring and sensible macroeconomic policy can bring to Latin America. Despite liberalisation and a vast increase in the number of people seeking work, unemployment rates have fallen. Large numbers of new jobs have been created, principally in the informal sector. There seems little real doubt that since 1970 poverty in Bogota has become both less common and less serious. However, if there is less poverty, it is principally because of demographic change: adults form a larger proportion of the labour force, and more of those adults are working. Poverty has been cut by the huge rise in labour participation. Fewer people are hungry, but people are also a great deal busier. Nor has the degree of income inequality been reduced.
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