however the economy is now slowing at a time when inequality remains uery high making future social progress challenging this chapter discusses how to achieve greater social inclusiveness against the background of weaker mediumterm growth first it argues that chile needs to increase income redistribution through its tax and transfer system towards levels prevailing in other oecd countries although existing social transfers are effective in combatting poverty their size remains small and many households at the bottom of the ladder are not reached by them second the chapter argues that labour earnings should be less disparate as they explain around of income inequality