Poverty and Social Policy in Latin America

Most indicators of human development in Latin America improved considerably until the early 1980s. Unfortunately, the debt crisis which hit most countries in the region during the 1980s badly dented the social record. Not only did it increase the number of people living in poverty but it led to a profound change in the nature of the development model. Neo-liberal economic thought and the lessons of the debt crisis convinced one Latin American state after another that it should follow a different development path.
Economic stabilization and structural adjustment had a profound effect on poverty in the region. Most families became poorer, particularly those living in the cities. Structural adjustment and the new economic model also modified the role of the state. Increasingly, Latin American governments stopped giving general subsidies and introduced a strategy of targeting subsidies at the poor. In places, the new strategy will no doubt provide an adequate safety net, but in others it will fail to provide sufficient help for the poor. All we can predict is that poverty will long remain regrettably common in most parts of Latin America. In places, economic growth will undoutedly reduce poverty but it is not at all easy to predict where it will be reduced. In this respect Latin America is very much like the rest of the world. Globalization has opened up local economies to international competition and offered them the prospect of selling local goods to foreign markets. How many Latin American economies will benefit from the new situation will determine how the poor will fare. Unfortunately, the state's ability to deal with any subsequent poverty has been greatly reduced. That, too, is part and parcel of the process of globalization.     

Social Policy and Inequality in Latin America: A Review of Recent Trends

Most Latin American countries have extensive social policies which absorb high levels of state spending. Despite this, Latin America continues to suffer from high levels of inequality in terms of income and access to basic services. This article explores this apparent paradox. It focuses on three aspects of social policy in the region: patterns of resource allocation, the distribution of welfare entitlements and differing capacities to take advantage of these entitlements. It applies this framework to study the distributional effects of education, health and social security policies, paying particular attention to recent changes and developments. The article shows that these three factors combine in various ways to benefit higher-income groups and exclude the poor. Recent changes have marginally improved provision for low-income groups, but the fundamentally inegalitarian nature of social policy in the region remains largely unchanged and unchallenged.     

Social Policy and Development in Latin America: The Long View

In the new development strategy currently shaping Latin America, alternative social policy models have emerged. This article argues that far from being rival alternatives, each of these models considers the wide differences among countries. The region is emerging from a century of transformation – from a traditional agrarian economy to an urban industrial one – in which countries have taken diverse historical paths. Some have almost completed this transformation, others are taking early steps, and the vast majority are living through it. State‐led transition has followed two successive development strategies. From the 1920s up to the 1980s, state developmentalism has mostly successfully assumed the twin challenges of economic and social progress. In the last two decades of the century, Latin American states adopted the policies of the Washington Consensus, which emphasized the importance of business in the framework of globalization and benefited the affluent few. However, an unambiguous shift in direction has been taking place in Latin America since the 1997 economic crisis. This article suggests that a new developmental welfare state model seems to be in the making. How will it evolve over the wider space of an increasingly integrated Latin America?     

Social welfare and social work: the meaning of poverty programs in Latin America

During the last decade, the concern about poverty has turned into a key issue in the government discourse, and participatory poverty programs have multiplied all over Latin America. Nevertheless, poverty and social unrest keep growing. The objective of this article is to explain this apparent paradox. First there is an analysis of the relationship between structural adjustment, the growth of poverty, and the reorientation of broad social policy away from social rights towards selective and targeted poor relief. In order to illustrate the content and operation of a typical Latin American poverty program, the Mexican National Solidarity Program is examined. The initial question posed is whether this program alleviates poverty and grants a social minimum for the poor in view of the magnitude of poverty, the quantity of resources and their allocation. Next the participatory approach of the program is analyzed in relation to the empowerment of poor groups and communities. Finally, there is a reflection on the place of social work in this program and how the role of the social worker has been transformed.     

Social policy expansion and segmentation in the first two decades of the 21st century in Latin America

Latin American countries saw an important expansion in social policy in the first two decades of the 21st century. Along with this increased inclusion, however, social policy remains segmented. Using recent data from ECLAC, World Bank, and other sources, this paper offers a comprehensive analysis of trends in social policy for the period 2000–2020 for 17 countries in Latin America. Four areas of social policy are assessed in longitudinal and comparative perspectives: transfers, health care, education, and family policies. Conditional cash transfers (CCT) and noncontributory pensions (NCP) are the two main policy innovations that allowed countries in the region to expand social rights to previously excluded populations (outsiders). At the same time, due to their design, these policies have introduced new layers of fragmentation to the welfare mix, without resolving—or even increasing—segmentation in social policy. Segmentation is still the rule for the areas of health care and education, and increasing privatisation went unabated even in the periods of social policy expansion and in the countries governed by left coalitions.     

The Changing Face of Pensions in Latin America: Design and Prospects of Individual Capitalization Pension Plans

This paper discusses the spread of individual capitalization pension plans in Latin America in the 1990s. Following the example of Chile in 1980, Argentina, Colombia, Costa Rica, Mexico and Peru have all introduced individual capitalization pension schemes in the 1990s. The paper discusses the rationale for the reforms and compares the main design features of the reformed pension systems in these countries. Lastly, the likely success of pension reform is discussed by focusing on issues of pension scheme coverage, benefit adequacy and administrative costs.     

Poverty, Social Exclusion and Social Policy in the Czech Republic

This article analyses the pattern of poverty and social exclusion in the Czech Republic and the impact of social policy on this pattern. The analysis is mostly based on data from the Czech Survey on Social Conditions of Households (2001; 27,000 respondents); Eurostat data provide a benchmark for making international comparisons. The poverty rate in the Czech Republic is among the lowest in Europe. On the other hand, material deprivation, as well as concentration of poverty within specific population groups, is high, with the unemployed facing the highest risk of poverty. Social policy measures in effect reinforce this pattern: while the benefit system is highly redistributive and effectively eliminates income poverty among households of employed persons and among pensioners, incomes of persons outside paid employment are protected less effectively. Labour market policy measures are insufficient in scope and inadequate in targeting groups which are facing the highest risk of labour market exclusion and poverty. We argue that although this practice is effective at present, it is not sustainable in the long term.     

Poverty Reduction: The Missing Piece of Pension Reform in Latin America

Employment‐based pension plans constitute the main form of pension provision in Latin America. Although recent pension reform in the region has focused on strengthening these, old‐age poverty remains high in most countries in the region, with older people over‐represented among the poor. The article argues that ensuring old‐age support for poor and vulnerable groups involves a different set of priorities and options for pension reform, namely a strong focus on tax‐financed public cash transfer programmes. Cash transfer programmes focused on poor older people are the missing piece of pension reform in the region. The article examines the experience of the handful of countries with such programmes in place, and draws the lessons for the future of social policy in the region.     

Latin America: a new developmental welfare state model in the making?1

Latin America is emerging from a century of transformation – from a traditional agrarian to an urban industrial economy – where countries have taken diverse historical paths. Some have almost completed this transformation, others are taking early steps, and most are living through it. State‐led transition has followed two successive development strategies. From the 1920s to the 1980s, state developmentalism, for the most part, successfully assumed the twin challenges of economic and social progress. In the final decades of the century, Latin American states adopted the policies of the Washington consensus, which emphasized the importance of business in the framework of globalization, benefiting the affluent few. However, an unambiguous shift in direction has been taking place in Latin America since the 1997 economic crisis. This article suggests that a new developmental welfare state model is in the making. How will it evolve over the wider space of an increasingly integrated Latin America?     

Financial liberalization, exchange rates and stock prices: Exogenous shocks in four Latin America countries

This paper provides an analysis of the long-run relationships and short-run dynamics between stock prices and exchange rates as well as the channels through which exogenous shocks influence these markets. We use monthly data for the period January 1980 to February 2009 for four Latin America, namely, Argentina, Brazil, Chile and Mexico. We conduct our analysis by means of cointegration analysis and multivariate Granger causality tests. The main finding of our analysis suggests that stock and foreign exchange markets in these economies are positively related and that the U.S. stock market acts as a channel for these links. Moreover, it is shown that these links are independent of foreign exchange restrictions. Finally, stability tests proposed by Hansen and Johansen (1993) are applied and it is shown that the dimension of the cointegration space is sample independent while the estimated coefficients exhibit instability in recursive estimations. Instability in these long-run relationships is evident during the Mexican currency crisis of 1994-1995, the Asian crisis of 1997 and the 2007-2009 credit and financial crisis.     

Social Exclusion and Poverty: Translating Social Capital into Accessible Resources

This article investigates the dynamic multi‐dimensional processes through which the poor become excluded from social participation. Drawing on social capital literature, it traces how bridging and bonding capital do not always translate into expected levels of social participation. It does so by detailing research findings from low income focus groups undertaken in Dunedin, New Zealand. These describe the experiences of group members in attempting to manage connections around employment, their own broader social participation or the participation of their children. In each case, the study highlights the difficulties of translation they experienced: in particular, translating available bridging or bonding capital into useful social, cultural or economic resources which could mitigate their social exclusion or enable fuller social participation.     

Social security privatisation: the lessons from the Chilean experience for other Latin American countries and the USA

The purpose of this article is to analyse the economic and social implications of the privatisation of social security in Chile and to draw some lessons from the Chilean experience. The focus of the analysis is on the costs and benefits of the privatised system and its impact on social equity. Thus, the main section of the article is devoted to the analysis of the 20-year-old Chilean experience. This section is followed by a discussion of privatisation in other Latin American countries and the impact that World Bank's policies have had on the region. The last section looks at the lessons for the United States and argues against the establishment of a partially private plan in the USA.     

The Effects of Participation and Resources on Democratic Attitudes: Role of Social Capital in Four Latin and South American Countries

ABSTRACT

Social capital research in Latin and South American countries has been gravely limited by the absence of valid measures of social capital. This study seeks to create a scale for measuring social capital in the Latin and South American context using exploratory and confirmatory statistical procedures. It also seeks to test the effect of social capital on democratic attitudes in Latin America through structural equation modeling methods. Analysis of four countries in Latin and South America suggests that social capital is positively related to democratic attitudes. Recommendations for future studies are highlighted, and scale properties and outcomes are discussed.     

Europeanization of Social Inclusion Policy in Macedonia – Trends,Challenges and Potential Benefits

The article explores policies, trends and challenges related to social inclusion in Macedonia, and assesses the contribution of EU strategic frameworks and instruments towards the country's greater inclusive growth. In this respect, the article starts by exploring existing instruments for pre‐accession (IPAs) which are relevant for the achievement of the EU 2020 goals. Then the article offers a country analysis related to issues such as poverty, material deprivation, as well as exclusion from the labour market, accompanied by an overview of policies and measures undertaken by the current government in the respective domains. Unfavourable socio‐economic trends, such as undeclared work, jobless growth, high unemployment and poverty rates, present serious challenges to the creation of an effective social inclusion policy. On the other hand, the ‘delayed’ negotiation process with the EU, which in social policy results in a lack of Joint Inclusion Memorandum (JIM) and Joint Assessment Paper (JAP) processes even after seven years of candidate status, slows down the adoption of more strategic policy approach towards sensitive issues, such as social inclusion and anti‐discrimination. The main aim of the article is to assess whether there is a significant difference between current social inclusion policies, measures, indicators and trends with the similar EU standards and practices. In addition, the article explores the potential benefits of the process of Europeanization for Macedonian social inclusion policy.     

Rolling Back the African State: Implications for Social Development in Ghana

The New Policy Agenda of the Reagan and Thatcher years has profoundly influenced aid flows from the industrialized countries of North America and Western Europe to the developing nations of sub‐Saharan Africa. The application of neo‐liberal principles to the disbursement of multilateral and bilateral aid for social development has resulted in the diversion of donor funding away from the public sector towards non‐governmental organizations. The consequences of relegating the role of the public sector in social development is explored through qualitative research conducted in Ghana with state‐employed community development workers. The study exposes how severe financial constraint within the state sector distorts the targeting of beneficiaries and social development activity. This differs from findings revealed by interviews with social development workers employed by international non‐governmental organizations. These indicate that such agencies are able to sustain effectively resourced fieldworkers who are in a position to form positive working relationships with beneficiaries. The circumstances of the Department of Community Development and its relationships with non‐governmental agencies in Ghana are used to explore the effects on state‐building of the New Policy Agenda in the sub‐Saharan region.     

拉丁美洲国家应对气候变化法律与政策分析

为有效应对气候变化,拉丁美洲国家在参与气候变化国际谈判的同时,还制定了相应的应对气候变化的法律、政策和行动计划,形成了两种推进方式：以气候变化法律为主、政策为辅的法律主导方式,以气候变化政策为主、少有甚至没有相关立法的政策主导方式。整体上看,拉丁美洲国家在应对气候变化上取得了较大进展,尤其是在气候变化综合性立法上取得了突破,在发展中国家中处于领先地位;气候变化国家政策正顺应时代潮流加速发展。在气候变化立法上,拉丁关洲国家在发展中国家中处于领先地位,在气候变化政策上,拉丁美洲国家正加快发展速度。由于受到多方面因素的制约,拉丁美洲国家在制定与实施应对气候变化法律与政策时仍面临一定阻力,个别国家在应对气候变化上徘徊不前,须尽快弥补政策空白。     

Social Work Practice for Social Development in Bangladesh: Issues and Challenges

Social work addresses social issues that constrain the betterment of a community. However, social work practice is struggling to deal effectively with the development challenges of Bangladesh. Based on a literature review and the experiences of the authors, this paper explores the emerging issues where social work practice is anticipated as a promising alternative for bringing sustainable social development in Bangladesh. Simultaneously, the paper discovers the limitation of social work practice in Bangladesh addressing these challenges.