The Impact of the System and Social Spending in Income Redistribution and Poverty Reduction in Latin America

2016 ◽  
Vol 219 (4) ◽  
pp. 121-136
Author(s):  
Nora Lustig ◽  
Claudiney Pereira
2020 ◽  
Vol 62 (1) ◽  
pp. 73-96
Author(s):  
Agustina Giraudy ◽  
Jonathan Hartlyn ◽  
Claire Dunn ◽  
Emily Carty

ABSTRACTNeopatrimonial exercise of power, combining ruler appropriation of resources with ruler discretionality in the use of state power, remains present to varying degrees in contemporary Latin America. Building on an extensive literature, this article provides a delimited conceptualization and measurement of neopatrimonialism for 18 countries in the region and examines the effects of neopatrimonial legacies on poverty with cross-national quantitative analysis. The study finds that higher levels of neopatrimonialism have a significant, substantive impact on poverty levels, controlling for other relevant demographic, socioeconomic, and political factors. It confirms the importance of a cumulative record of democracy for poverty alleviation, while the analysis indicates that neopatrimonialism limits the effects of the political left in power on poverty reduction.


2019 ◽  
Vol 9 (1) ◽  
pp. 157-175 ◽  
Author(s):  
Rasa Miežienė ◽  
Sandra Krutulienė

AbstractAvailable studies indicate a strong negative correlation between poverty and social expenditures in EU countries. It means that the country’s at-risk-of-poverty rate tends to erode with increasing social expenditure. However, the studies have demonstrated that the impact of government spending on poverty may vary according to the sector of spending, how well it is targeted, and the way in which it is financed. Some countries manage to achieve a rather significant poverty rate reduction even with relatively low, in the context of other Member States, social expenditure (percentage of GDP). This suggests that in order to reduce poverty rates, it is important to consider not only the amount allocated to social spending, but also the areas the social transfers are channelled to. The article aims to analyse how the composition and the extent of social spending/transfers may affect poverty reduction in EU countries. The analysis showed that social protection transfers reduce the percentage of people at-risk-of-poverty in all countries, however, to a very different extent. Regression analysis demonstrated that social exclusion and family/children expenditure was found to be the most important predictor for a relative antipoverty effect of social transfers: even a small percentage increase in such expenditure allows quite a significant increase in the relative antipoverty effect of social transfers.


2021 ◽  
Vol 4 (5) ◽  
pp. 152-164
Author(s):  
A. R. KELEKHSAEVA ◽  

The article examines poverty and inequality as serious long-term and widespread problems in society. Research on poverty has been mainly conducted from the perspective of economics, now the focus has shifted to psychological aspects with an emphasis on the causes and consequences of poverty. The overall economic disaster that COVID-19 will leave in Latin America and the Caribbean remains to be seen, but its impact on social well-being portends a bleak future. After seven years of slow growth, the region's GDP fell 5,3%, the largest drop in a century. According to a joint report submitted by the Economic Commission for Latin America and the Caribbean (ECLAC) and the Food and Agriculture Organization of the United Nations (FAO), the impact of the pandemic could plunge an additional 16 million people into extreme poverty in 2020, resulting in 83,4 million Hispanics will live in complete poverty. These organizations warn that hunger will be the biggest problem facing the region, where 53,7 million people are already surviving severely food insecure. The purpose of this study is to examine the relationship between poverty and inequality as economic categories in the context of their impact on the countries of Latin America. To do this, the authors examined the key factors affecting poverty and inequality, analyzed trends in poverty and inequality in Latin America and the Latin Basin. The article is based on research on poverty and inequality in macroeconomic theory. In particular, the works of Y. Amiel, F. Cowell, T. Buhard, P. Wizard, the study of socio-economic inequality and the fight against poverty – G. Babeuf, I. Bentham, J. M. Keynes, V. Paret, G. Spencer, L. Erhard, K. Arrow, D. Rocardo, A. Pigou and many others are devoted to the problem of inequality. Significant results of studies of poverty and welfare are given in the works of prominent foreign researchers: P. Townsend, A. Sen, D. Sachs, M. Orshan-sky, T. Marshall, F. Hayek, thanks to which the system of ideas about poverty was formed. The importance of poverty and its impact on government discourses, policies and programs has fueled much research on a Latin American scale. Publications on this topic have been rolled out over the past three decades and have created a veritable battlefield. Poverty reduction is a key development challenge facing Latin America and the Caribbean. Inequality is one of the historical problems in Latin America, one of the factors that most paralyzes the eco-nomic and social aspirations of most countries in the region. Poverty reduction can be understood in both a limited and a broad sense. The first involves a focus on programs and projects that target the poor – vocational training programs for low-income people, food stamps, productivity projects in the informal sector, and care for mothers and children in communities that do not have access to this service, etc. These programs are usually funded from so-called emergency funds and social investments, although they may also be specialized activities of the minis-tries or secretariats that make up the “social sector”. On the other hand, the broader definition of poverty reduction includes economic policies and traditional social policies (especially education and health). One of the main ways to solve this problem in the medium and long term obliges countries to move towards a universal basic income, giving priority to families with children and adolescents, and to maintain universal, comprehensive and sustainable social protection systems, increase their coverage as a central component of the new welfare state. A broad and lasting consensus and political commitment are required to make significant improvements in education, health and well-being. Unfortunately, some Latin American coun-tries have serious governance problems that hinder the effective functioning of democratic systems due to fragmentation and lack of policy consensus. For this reason, stability and continuity of economic and social policies are an indispensable element for the development of nations and the progress of peoples.


2012 ◽  
pp. 1250-1263
Author(s):  
Alberto Chong ◽  
Cecilia de Mendoza

While the current scientific literature is quite scarce for most of the developing world, several leading researchers have made great strides in understanding the role of cyber technologies and related information and communication technologies (ICT) in economic development. A good proportion of this work lays on interventions in the regions of South Asia and Africa. However, cyber-behavior research focused on Latin America has been very limited. Very recently, a group of researchers took a bold step to apply rigorous statistical tools in a systematic way to evaluate how these technologies contributed to the success of several development projects in the region of Latin America. This chapter draws on several of the background papers of the book “Development Connections: Unveiling the Impact of Information Technologies,” edited by Alberto Chong, as well as some of the book’s chapters. It summarizes a number of specific cyber-interventions in the areas of finance, education and poverty-reduction that took place in Latin America and that may lead to a better understanding of the impact of interventions to know what works, what does not, and why.


Author(s):  
Simone Cecchini

Poverty and inequality represent two enormous challenges for the countries of Latin America. In 2002, about 220 million people (44% of Latin Americans) were poor, and the average incomes of the richest 20% of the population were between 10 (Uruguay) and 44 times (Bolivia) higher than the average incomes of the poorest 20% (ECLAC, 2004). In an age where ICT is bringing about profound changes to societies, it is thus relevant to analyze whether these technologies can contribute to poverty reduction, and what the impact on inequality may be.


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