Inequality is one of the main traits that define the history of Latin America and the Caribbean. A significant and persistent inequality, accompanied by low social mobility, has led the region to fall into an “inequality trap”; a vicious circle that is difficult to break. How can we put an end to this situation? What public policies can be designed to prevent inequality being transmitted from one generation to the next? Why have the political system and the redistribution mechanisms not been effective in reversing this pattern? This first Regional Human Development Report for Latin America and the Caribbean offers answers to these and other questions. The central message is that yes, it is possible to reduce inequality in Latin America and the Caribbean.