IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

From Social Policy to an Open-Economy Social Contract in Latin America

  • Nancy Birdsall

    ()

After a decade of economic and political reforms that dramatically altered the structure of economies in Latin America, poverty and high inequality remain deeply entrenched. Integration into the global economy in the 1990s brought increased prosperity only to a small minority of households in most countries, primarily those in which adults had some university education. The reforms in themselves did not hurt the poor, but they left behind both the poor (using the international definition of those living on less than $2 a day), but the great majority of middle-income households who are, as I show, surprisingly poor by Western middle-class standards. What does this imply for future social policy in the region? I suggest in this paper the logic of going beyond the standard, poverty-targeted, elements of good social policy to a modern social contract adapted to the demands and the constraints of an open economy. A modern open-economy social contract would extend current social policy in two ways. First, it would be explicitly based on broad job-based growth. Second, it would be politically and economically directed not only at the currently poor but at the near-poor and economically insecure middle-income strata. I discuss critical elements of an open-economy social contract. These include unusually good fiscal policy; increasing effective taxation of the rich, making job mobility an explicit public policy goal, and a regional strategy for better access to rich country markets.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cgdev.org/content/publications/detail/2769
Download Restriction: no

Paper provided by Center for Global Development in its series Working Papers with number 21.

as
in new window

Length: 38 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:cgd:wpaper:21
Contact details of provider: Web page: http://www.cgdev.org

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cgd:wpaper:21. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Roodman)

The email address of this maintainer does not seem to be valid anymore. Please ask David Roodman to update the entry or send us the correct address

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.