Resumen 

This paper investigates one of the main arguments behind the Mapuche violent conflict in the south of Chile. Several authors, as well as the media, point out to poverty and high inequality as the central reason explaining the violent conflict in the region of la Araucanía. This study provides a poverty and capability comparative analysis of the Mapuche indigenous group and the rest of the population in the conflict affected Region. Using both monetary and multidimensional poverty indicators, based on data from the 2013 National Socio Economic Characterization survey and information administrative records, the investigation will explore some of the main determinants of poverty. We expect to find significant differences between indigenous and non-indigenous groups, both in terms of poverty status and in the depth of it. This information combined with some qualitative work will shed light on possible explanations for the conflict and thus provide critical information on how to address it by designing inclusive policies that tackle the main causes of poverty and lack of capabilities. The policy prescription could help minimize the violence in the region as well as provide with new opportunities to a population lagging behind mostly due to discrimination.