Social Policy Expansion in Latin America

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Ecuador Conference Social Policy Expansion in Latin America Candelaria Garay Kennedy School of Government Harvard University


Expansion of Social Policy, South America and Mexico • Expansion of transfers and social services for populations traditionally excluded from social policy (Labor-market outsiders) • Transformation of the incomplete or truncated structure of social policy in the region • Main innovations: old-age pensions, cash transfers for households with children below 18 and health services.


Distinctive Features of New Benefits • Meaningful scope of coverage • Limited discretion in access to benefits and services • Positive social and economic effects in several countries particularly concerning: – Infant mortality rates, school completion, income inequality, income stability among poorest households, growing economic activity in backward areas.


Population Excluded from Social Protection/Outsiders (percentage)

100 90 80 70 60 50 40 30 20 10 0

Argentina

Uruguay c.1990

Mexico c. 2000

Bolivia c.2010

Peru


Pensions Non-contributory benefits for people 65+ Modes of expansion: -Creation of a universal pension program - Inclusion of outsiders in the existing contributory system (i.e., flexibilizing eligibility conditions) -Creation of a targeted pension program for outsiders


Outsiders 65+ Receiving Pension Benefits c. 2010 (percentage) 100 90 80 70 60 50 40 30 20 10 0

Bolivia

Uruguay

Ecuador

Mexico


Cash Transfers for Households with Children Cash transfers for households with school-age children often conditional on school attendance and health checkups. Modes of expansion: -Extension of a pre-existing program of family allowances for insiders to outsider children. -Creation of a cash transfer program specifically for outsiders.


Outsider Children Receiving Cash Transfers c. 2010 (percentage) Chart Title 100 90 80 70 60 50 40 30 20 10 0

Bolivia

Argentina

Chile

Mexico


Health Services, c 2010 Coverage

Broad Moderate/low

Payment System Free Services Partly Subsidized Services Argentina Brazil

Uruguay Chile

Ecuador, Venezuela, Bolivia

Mexico, Peru


Future Social Agenda? • How to articulate contributory and non-contributory components of new welfare regimes • How to better coordinate different levels of government in the implementation of health services (funding, quality of services, oversight). • Pending Issues: - Housing Policy - Youth (education, skill formation, and Jobs)


Summary Outsiders Coverage

< 50%

>50% <60%

>60

> 70%

Argentina Uruguay

Brazil

Bolivia

< 70%

Chile

Mexico Venezuela

Ecuador Peru


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