CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

(Barry) #1

Table 8. Redistributive effect of budget operations in OECD (2005) and Latin
America, around 2000s


Source: compilation on Cetrangolo and Gomez Sabaini (2006) for OECD, and CEPAL (2005) for the
Latin American countries. Note: The Gini in the table refer to the distribution of private and
public income.


Social assistance


During the last 15 years, the region has experienced a profound


change in its social protection systems, i.e. away from social


insurance for the relatively few employed in the formal sector and


little spending on social assistance, and towards a better financed


social assistance (Barrientos and Santibanez 2009). The new


emphasis on social assistance (which continues to be supported by


social insurance in the slowly expanding formal sector) has entailed


the development of large scale programs focusing on poverty


reduction and including three main types of interventions: i.e.


unconditional income transfers such as non-contributory pensions;


conditional transfers (such as most of those listed in Table 9); and


integrated anti-poverty programs (such as Chile Solidario).


Contrary to the small, donor dependent, poorly sequenced and


targeted Social Emergency and Investment Funds introduced to


soften the resistance to structural adjustment in the late 1980s


(Cornia 2001), the new social assistance transfers are better funded


by the state (with programs absorbing up to 0.5 to one percent of


GDP), and cover a considerably greater share of the population at


risk (Table 9). Such programs are directed to new political

Free download pdf