34
Public Works as a Safety Net
Table 3.2 Correlation of Public Works Program Models and Country Circumstances
Circumstance High- and middle-income countries subject to covariate shocks Low-income agrarian countries subject to periodic weather shock and seasonal variation Postconflict or fragile countries Countries in an emergency situation following a natural disaster
Short-term safety net
Model Longer-term safety net
Public works plus
X
—
—
X
X
X
X X
X —
— —
Note: — = not likely.
The following highlights some notable trends and issues associated with public works programs as applied in these four sets of country circumstances.
High- and Middle-Income Countries Subject to Covariate Shocks In high- and middle-income countries, the predominant use of public works programs is generally in response to short-term shocks, typically macroeconomic in nature (table 3.3). Because these countries do not have the fiscal and administrative constraints of low-income countries, they can easily develop the institutional capacity needed to implement a program quickly. Public works programs in high- and middle-income countries are as likely to be implemented in urban settings as rural. Thus, they usually involve social infrastructure and services such as the construction and maintenance of recreational, health, and educational facilities; street sweeping; and day care center operation. These activities are often coordinated at the municipal level. Argentina is a good example of an upper-middle-income country that has implemented a flagship public works program. Argentina went through a severe economic crisis during the 1990s that caused high unemployment and rising poverty levels. In response, the government implemented the Trabajar (To Work) program in 1997 to cushion the decline in household income for workers not covered by any other safety net program. The deepening of the financial crisis in 2002 aggravated the unemployment situation and generated social unrest. The government