Experts react to Casen 2024 poverty drop amid calls for policy reform

Chile's Casen 2024 survey reports income poverty falling to 17.3% under stricter methodology—a drop of over 600,000 people since 2022—but experts caution against complacency. With one-fifth of the population still vulnerable and rising state subsidy reliance, analysts advocate sustainable reforms like negative income tax and enhanced job opportunities.

The Encuesta de Caracterización Socioeconómica Nacional (Casen) 2024, released this week, confirms poverty declining to 17.3% even with updated, more rigorous standards that adjust poverty lines and refine the food basket. This progress occurs despite economic challenges, yet leaves 3.48 million Chileans below the line and highlights growing dependency on state aid.

Economist Julio Guzmán Cox, in a La Tercera letter, welcomes the decline but criticizes fragmented subsidies, proposing a negative income tax to boost incomes, formalize labor, and enable lasting poverty reduction.

Romina Salinas of Instituto Res Publica stresses persistent issues: rising state assistance in vulnerable households erodes self-reliance. She calls for long-term investments in education, training, formal jobs, and opportunities where 'merit and effort' yield rewards.

These views underscore the consensus for structural policies beyond short-term gains, as Chile addresses poverty affecting nearly 20% under prior measures.

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