Are the Poor Protected from Budget Cuts? Evidence for Argentina
Macroeconomic adjustment programs often emphasize the need to protect social spending from cuts, and to protect pro-poor spending in particular. But does this happen in practice during fiscal contractions? The paper presents evidence for Argentina. Using aggregate time series data the paper first finds that social spending was not protected historically, although more "pro-poor" social spending was no more vulnerable. Turning next to new data for an externally-financed workfare scheme introduced in response to a macro crisis, the paper finds that this program was far better targeted than other social spending. However, it appears that the program still had to assure that a small but relatively well-protected share of its benefits went to the non-poor. This appears to be a political economy constraint.
Volume (Year): V (2002)
Issue (Month): (May)
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- De Donder, Philippe & Hindriks, Jean, 1998.
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Springer, vol. 95(1-2), pages 177-200, April.
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World Bank Economic Review,
World Bank Group, vol. 14(2), pages 331-45, May.
- Ravallion, 1999. "Monitoring targeting performance when decentralized allocation to the poor are unobserved," Policy Research Working Paper Series 2080, The World Bank.
- Ravallion,Martin, 2000. "Are the poor protected from budget cuts? theory and evidence for Argentina," Policy Research Working Paper Series 2391, The World Bank.
- Martin Ravallion, 1999.
"Is More Targeting Consistent with Less Spending?,"
International Tax and Public Finance,
Springer;International Institute of Public Finance, vol. 6(3), pages 411-419, August.
- Ravallion, Martin, 1999. "Are poorer states worse at targeting their poor?," Economics Letters, Elsevier, vol. 65(3), pages 373-377, December.
- Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
- Jalan, Jyotsna & Ravallion, Martin, 1999. "Income gains to the poor from workfare - estimates for Argentina's TRABAJAR Program," Policy Research Working Paper Series 2149, The World Bank.
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