Publication: Social Protection in Latin America : Achievements and Limitations
Loading...
Date
2010-05-01
ISSN
Published
2010-05-01
Editor(s)
Abstract
Social protection systems in Latin America have been transformed in the past two decades. Until the 1980s, those who were not covered by the social security arrangements available primarily in the urban formal sector received little public assistance beyond universal subsidies for some food or fuel purchases. Since the 1990s, the introduction of non-contributory social insurance programs (including "social pensions") and conditional cash transfers has substantially extended the coverage and improved the incidence of social assistance. However, the organic growth of subsidized social assistance in parallel to the older social insurance system, financed largely out of taxes on formal sector employment, has led to a dual system that is neither properly equitable nor efficient. The twin challenges that now face social protection in Latin America are to better integrate those two halves of the system, and to develop programs that promote sustainable self-reliance, by moving from "safety nets" to "opportunity ropes."
Link to Data Set
Citation
āFerreira, Francisco H.G.; Robalino, David. 2010. Social Protection in Latin America : Achievements and Limitations. Policy Research Working Paper ; No. 5305. Ā© World Bank. http://hdl.handle.net/10986/3792 License: CC BY 3.0 IGO.ā
Associated URLs
Associated content
Other publications in this report series
Publication Intergenerational Income Mobility around the World(Washington, DC: World Bank, 2025-07-09)This paper introduces a new global database with estimates of intergenerational income mobility for 87 countries, covering 84 percent of the worldās population. This marks a notable expansion of the cross-country evidence base on income mobility, particularly among low- and middle-income countries. The estimates indicate that the negative association between income mobility and inequality (known as the Great Gatsby Curve) continues to hold across this wider range of countries. The database also reveals a positive association between income mobility and national income per capita, suggesting that countries achieve higher levels of intergenerational mobility as they grow richer.Publication The Future of Poverty(Washington, DC: World Bank, 2025-07-15)Climate change is increasingly acknowledged as a critical issue with far-reaching socioeconomic implications that extend well beyond environmental concerns. Among the most pressing challenges is its impact on global poverty. This paper projects the potential impacts of unmitigated climate change on global poverty rates between 2023 and 2050. Building on a study that provided a detailed analysis of how temperature changes affect economic productivity, this paper integrates those findings with binned data from 217 countries, sourced from the World Bankās Poverty and Inequality Platform. By simulating poverty rates and the number of poor under two climate change scenarios, the paper uncovers some alarming trends. One of the primary findings is that the number of people living in extreme poverty worldwide could be nearly doubled due to climate change. In all scenarios, Sub-Saharan Africa is projected to bear the brunt, contributing the largest number of poor people, with estimates ranging between 40.5 million and 73.5 million by 2050. Another significant finding is the disproportionate impact of inequality on poverty. Even small increases in inequality can lead to substantial rises in poverty levels. For instance, if every countryās Gini coefficient increases by just 1 percent between 2022 and 2050, an additional 8.8 million people could be pushed below the international poverty line by 2050. In a more extreme scenario, where every countryās Gini coefficient increases by 10 percent between 2022 and 2050, the number of people falling into poverty could rise by an additional 148.8 million relative to the baseline scenario. These findings underscore the urgent need for comprehensive climate policies that not only mitigate environmental impacts but also address socioeconomic vulnerabilities.Publication Engineering Ukraineās Wirtschaftswunder(Washington, DC: World Bank, 2025-07-29)As Ukraine emerges from the devastation of war, it faces a historic opportunity to engineer its own Wirtschaftswunderāa productivity-driven economic transformation akin to post-war West Germany. While investment-led growth may offer quick wins, it is efficiency, innovation, and institutional reform that will determine Ukraineās long-term economic trajectory. Drawing on rich micro-level firm data spanning 25 years, this paper uncovers deep structural distortions that have suppressed creative destruction and productivity in Ukraine. It finds that business dynamism is on the decline, alongside rising market concentration among incumbent businesses, including low productivity state owned enterprises. To inform priorities for reviving business dynamism, this study develops a model of creative destruction drawing on Acemoglu et al. (2018) and Akcigit et al. (2021). The quantitative assessment highlights that policies that discipline entrenched incumbents are the bedrock for reviving business dynamism and engineer Ukraineās Wirtschaftswunder. Policies targeting specific types of firms have limited efficacy when incumbents run wild.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Disentangling the Key Economic Channels through Which Infrastructure Affects Jobs(Washington, DC: World Bank, 2025-04-03)This paper takes stock of the literature on infrastructure and jobs published since the early 2000s, using a conceptual framework to identify the key channels through which different types of infrastructure impact jobs. Where relevant, it highlights the different approaches and findings in the cases of energy, digital, and transport infrastructure. Overall, the literature review provides strong evidence of infrastructureās positive impact on employment, particularly for women. In the case of electricity, this impact arises from freeing time that would otherwise be spent on household tasks. Similarly, digital infrastructure, particularly mobile phone coverage, has demonstrated positive labor market effects, often driven by private sector investments rather than large public expenditures, which are typically required for other large-scale infrastructure projects. The evidence on structural transformation is also positive, with some notable exceptions, such as studies that find no significant impact on structural transformation in rural India in the cases of electricity and roads. Even with better market connections, remote areas may continue to lack economic opportunities, due to the absence of agglomeration economies and complementary inputs such as human capital. Accordingly, reducing transport costs alone may not be sufficient to drive economic transformation in rural areas. The spatial dimension of transformation is particularly relevant for transport, both internationallyāby enhancing trade integrationāand within countries, where economic development tends to drive firms and jobs toward urban centers, benefitting from economies scale and network effects. Turning to organizational transformation, evidence on skill bias in developing countries is more mixed than in developed countries and may vary considerably by context. Further research, especially on the possible reasons explaining the differences between developed and developing economies, is needed.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Framework for the Development of Social Protection Systems(World Bank, Washington, DC, 2015-07-07)Many countries have used social protection to achieve broader development goals, particularly on poverty reduction and inclusive growth. A wide range of social protection programs allows countries to tackle specific development constraints at national, community, and household levels; provide support to particular population groups; and enhance growth-promoting opportunities.For instance, public works programs and cash transfers are important and flexible social assistance programs that can be tailored to achieve specific objectives and adjusted to various levels of institutional capacity. They can also be implemented as national and centralized programs or delivered in a more decentralized fashion through community-driven development platforms.Publication Togo : Towards a National Social Protection Policy and Strategy(Washington, DC, 2012-06-29)Over the last several years, the Government of Togo has made important advances in the area of social protection. Although Togo has had limited social insurance and social assistance programs, the economic shock and natural disasters starting in 2008 brought the need for better mechanisms of social protection to the fore. The Government response has focused on measures to address the needs of the affected populations, while building the analytical base for developing a national social protection policy and strategy. For example, several important social protection programs were launched in the last few years, including the National Institute for Health Insurance, a labor intensive public works program for rural areas, a school lunch program, and a pilot for cash transfer program targeting vulnerable children. The Government has also promoted access to basic services by the poor by eliminating school fees and fees for cesarean sections. As part of developing the analytical base for a national social protection policy and strategy, a series of studies and analyses were carried out over the last two years. International development partners have supported this effort and have worked closely with the Government in developing this basis. This report forms part of the overall packet of analytical work prepared to support the formation of a national social protection policy and strategy. The objectives of this report are to: a) synthesize the situational analysis on poverty and vulnerability and the current state of social protection policies and programs from the set of background documents; and b) assist the government through providing general orientations and strategic choices in developing a national social protection policy and strategy that would integrate the various ongoing efforts and components of social protection with a view to achieving the Government's longer-term goal of social protection for all. This report is organized in the following sections: section two provides a brief overview of the objectives, components and importance of social protection as part a country's economic growth and poverty reduction objectives. Section three summarizes the basic situation of poverty and vulnerability in Togo and identifies vulnerable groups and main risks and shocks. Section four analyses the current policy and institutional framework and reviews the main areas of social protection, in terms of approach, coverage, targeting and expenditures. Section five proposes basic elements for the Government to take into consideration in developing a national social protection policy and strategy. Section six identifies next steps in finalizing the preparation of a national social protection policy and strategy.Publication Togo : Towards a National Social Protection Policy and Strategy(World Bank, Washington, DC, 2012-06)Although Togo has had limited social protection programs, the economic shock and natural disasters starting in 2008 brought the need for better mechanisms of social protection to the fore. The Government response has focused on measures to address the immediate needs of the affected populations, while building the analytical base for developing a national social protection policy. This report forms part of the overall analytical work prepared to support the formation of a national social protection policy. It finds that the most common safety net programs are in-kind transfers with limited coverage. It proposes basic elements for the Government to take into consideration in developing a national social protection policy and strategy and identifies next steps in finalizing the preparation of such a policy and strategy.Publication Vietnam : Strengthening the Social Safety Net to Address New Poverty and Vulnerability Challenges(Washington, DC, 2010-11)As it transitions to Middle-Income Country (MIC) status, Vietnam is considering whether its social protection system is adequate to meet rapidly changing needs associated with strong economic growth, integration of its economy in regional and global markets, industrialization, urbanization and other economic and societal shifts. Vietnam's social safety net - programs with the following objectives: 1) alleviation of chronic poverty; 2) help to the poor in coping with the worst forms of shocks and transient poverty; and 3) promotion of human development for long-term poverty alleviation. This note aims to assess the system of social safety net programs currently in place in Vietnam and to gauge how well it covers the poor and vulnerable populations. This note highlights two messages: first, it identifies gaps in the current poverty reduction and social protection system - programs that help address urban vulnerability and poverty and that help the poor and vulnerable manage shocks - which could be closed through strengthened and more effective household-targeted social safety net programs. Second, in examining the existing core social safety net programs the note finds that, while targeting is respectable, their primary weakness lies in limited coverage. Based on these findings, this note strengthens household-targeted social safety net interventions in Vietnam as a complement to geographically-targeted poverty reduction programs and social insurance.Publication World Bank Support for Social Safety Nets 2007-2013 : A Review of Financing, Knowledge Services, and Results(World Bank Group, Washington, DC, 2014-06)This review examines World Bank support to social safety nets between FY2007-13, including both financing and knowledge services. During this time period World Bank financing for safety nets totaled just over United States (U.S.) 12 billion dollars, 273 financing activities in 93 countries, the World Bank spent approximately U.S. 118 million dollars on 281 safety net studies and supported approximately 129 credible safety net impact evaluations covering in 24 countries. Among the 93 countries represented in the portfolio, 42 received little or no safety net support from the World Bank prior to FY2007. The growth in Bank support is especially notable during the period of the food, fuel, and financial crises. The analysis delves into these trends by region, type of intervention, and instruments involved. Finally, it delineates implications and outlook for the future based on lessons learned, results measured, and evaluative evidence.
Users also downloaded
Showing related downloaded files
Publication Governance Matters VIII : Aggregate and Individual Governance Indicators 1996ā2008(2009-06-01)This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.Publication Governance Matters IV : Governance Indicators for 1996-2004(World Bank, Washington, DC, 2005-06)The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.Publication Design Thinking for Social Innovation(2010-07)Designers have traditionally focused on enchancing the look and functionality of products.Publication Breaking the Conflict Trap : Civil War and Development Policy(Washington, DC: World Bank and Oxford University Press, 2003)Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.Publication Government Matters III : Governance Indicators for 1996-2002(World Bank, Washington, DC, 2003-08)The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.