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A regional basic income: towards the eradication of extreme poverty in Central America

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  • Krozer, Alice

Abstract

Centroamérica sigue enfrentando niveles muy altos de pobreza e indigencia, siendo además la región más desigual del mundo. Por lo tanto, este ensayo propone la erradicación de la pobreza extrema en la región a través de la implementación de una transferencia monetaria universal e incondicional. Esta Renta Básica garantizaría la sobrevivencia a todo ciudadano, independientemente de su condición personal, familiar, u ocupacional. Simultáneamente, la propuesta fomentaría la redistribución de ingresos, avanzaría la educación, productividad futura y crecimiento, promovería la estabilidad macroeconómica, y aliviaría la presión migratoria. El esquema establecería un cambio en las políticas de desarrollo, substituyendo los programas condicionados paliativos y orientados al corto plazo con un acercamiento a la erradicación de la pobreza preventivo y basado en derecho. Centroamérica invita para tal propuesta, considerando la ostensible desigualdad y los niveles de pobreza de sus países por un lado, y por el otro la existencia de un mercado común y grado relativo de integración, que podría facilitar la tarea. Este ensayo estima los costos de cubrir la población entera de la región con una Renta Básica, y demuestra que dicha propuesta puede ser viable, y económicamente accesible y benéfica, mientras ofrezca una postura novedosa y universalmente justa hacia la erradicación de la pobreza. ABSTRACT Central America continues facing high poverty and indigence levels, while being the most unequal region in the world. This paper therefore proposes the eradication of extreme poverty in the region through the implementation of a universal, unconditional cash transfer to all citizens. Such a regional Basic Income would guarantee every citizen, independently of occupation, age, or family background, survival. Simultaneously, the proposal would further income redistribution, enhance education, future productivity and growth, promote macroeconomic stability, and alleviate emigrational pressures. Such a scheme would establish a paradigm change in development policy thinking by moving away from the uncertainty of palliative, short-term oriented programs featuring conditionality and means-testing, towards a rights-based, preventive approach of poverty eradication. Central America invites for such a proposal, considering its countries' blatant inequality and poverty levels, on the one hand, while on the other its existing common market and relative degree of integration could facilitate such undertaking. The paper estimates the costs of covering the entire region's population with a Basic Income, and shows that such a proposal would be feasible, and economically affordable and beneficial, while offering a novel and universally just stance on poverty eradication.

Suggested Citation

  • Krozer, Alice, 2010. "A regional basic income: towards the eradication of extreme poverty in Central America," Sede Subregional de la CEPAL en México (Estudios e Investigaciones) 25938, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col094:25938
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    1. Howard Michael W., 2007. "A NAFTA Dividend: A Guaranteed Minimum Income for North America," Basic Income Studies, De Gruyter, vol. 2(1), pages 1-23, June.
    2. Standing Guy, 2008. "How Cash Transfers Promote the Case for Basic Income," Basic Income Studies, De Gruyter, vol. 3(1), pages 1-30, July.
    3. Seekings Jeremy, 2007. "The Inconsequentiality of Employment Disincentives: Basic Income in South Africa," Basic Income Studies, De Gruyter, vol. 2(1), pages 1-6, June.
    4. Suplicy Eduardo Matarazzo, 2007. "Basic Income and Employment in Brazil," Basic Income Studies, De Gruyter, vol. 2(1), pages 1-6, June.
    5. Brière, Bénédicte de la & Rawlings, Laura B., 2006. "Examining conditional cash transfer programs : a role for increased social inclusion?," Social Protection Discussion Papers and Notes 90341, The World Bank.
    6. David Clark & David Hulme, 2010. "Poverty, time and vagueness: integrating the core poverty and chronic poverty frameworks," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(2), pages 347-366, March.
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    1. Oscar A. Ishizawa & Juan Jose Miranda, 2019. "Weathering Storms: Understanding the Impact of Natural Disasters in Central America," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 181-211, May.
    2. Jiaqi Yang & Geetha Mohan & Supriya Pipil & Kensuke Fukushi, 2021. "Review on basic income (BI): its theories and empirical cases," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(2), pages 203-239, December.

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