The Social Panorama of Latin America and the Caribbean 2025 analyses the trap of high inequality, low social mobility and weak social cohesion that is perpetuating the development crisis in the region. Inequality is a historical, structural and multidimensional problem that must be adequately measured in order to design comprehensive policies that address its multiple causes. Overcoming inequality requires a holistic approach to addressing inequalities caused by weaknesses in education systems and strengthening the role of education in intergenerational social mobility. It also requires linking up productive development policies, labour market policies, the institutional framework for social policy and care systems to strengthen labour inclusion. These measures should be supported by comprehensive policies that promote gender equality and the care society and that ensure respect for the rights of Indigenous Peoples, migrants and persons with disabilities. To implement these policies, it is essential to strengthen institutions’ technical, operational, political and prospective (TOPP) capabilities and ensure efficient and financially sustainable social spending. Only through these strategies will it be possible to reduce inequality and move towards inclusive social development in Latin America and the Caribbean.