  Recent work has shown that a country's productive structure constrains its
level of economic growth and income inequality. Here, we compare the productive
structure of countries in Latin America and the Caribbean (LAC) with that of
China and other High-Performing Asian Economies (HPAE) to expose the increasing
gap in their productive capabilities. Moreover, we use the product space and
the Product Gini Index to reveal the structural constraints on income
inequality. Our network maps reveal that HPAE have managed to diversify into
products typically produced by countries with low levels of income inequality,
while LAC economies have remained dependent on products related to high levels
of income inequality. We also introduce the Xgini, a coefficient that captures
the constraints on income inequality imposed by the mix of products a country
makes. Finally, we argue that LAC countries need to emphasize a smart
combination of social and economic policies to overcome the structural
constraints for inclusive growth.
