Why does inequality endure? This is a particularly disconcerting problem in middle-income countries with relatively stable macroeconomic indicators, where some people benefit from development while the majority is left behind. Analyzing El Salvador, Guatemala and Honduras, this paper investigates the differentiated role of elites in processes that perpetuate inequality.

The study finds that the commitment of economic elites to quality social spending is crucial for developing institutional capacity and that they can limit it when their interests are threatened.