Publication: Poverty and Income Distribution in a High Growth Economy : The Case of Chile 1987-98, Volume 1. Main Report
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2001-08-30
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2001-08-30
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The study analyzes Chile's strong economic growth, and well directed social programs, a combination that reduced the poverty rate in half, during a period of just eleven years. The previously noted trends in falling poverty, in terms of incidence, depth, and severity, continued into 1998, and the analysis shows there was unambiguously less poverty between 1994, and 1998, observed at all levels of income. Clearly, income poverty is related to, and impacted by a number of important factors, such as level of education, larger families, or families headed by women, and employment opportunities. Evidence shows Chile achieved considerable improvements in key social indicators, i.e., infant mortality, life expectancy, and educational coverage, for the combination of the three social sector deficit measures of poverty - education, health, and housing - with the income poverty measure, reveals that fifty one percent of all households have neither social sector, nor income deficits. Nonetheless, income inequality remained high by international standards, and appeared to have worsened between 1994-98. Thus, adjusting income inequality for social spending became an important estimate, particularly if social programs were growing. The methodology estimated imputed income transfers from subsidies in the three sectors, and the analysis confirmed that adjustments for in-kind income transfers, substantially reduce the Gini coefficient on income inequality. Results indicate that Chile's success in reducing income disparities through social spending is linked to its system for targeting social programs.
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“World Bank. 2001. Poverty and Income Distribution in a High Growth Economy : The Case of Chile 1987-98, Volume 1. Main Report. © World Bank. http://hdl.handle.net/10986/15468 License: CC BY 3.0 IGO.”
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Given the relatively high levels of unemployment, the persistence in educational deficits, and the low coverage of social programs amongst the poor, recommendations suggest, respectively, a focus on relevant, job creation aspects, in line with labor market demands, not merely responsive to the renewed economic growth, to include as well, further labor code, and unemployment insurance system reforms; efforts to consolidate, and intensify the quality, and equity in education, particularly tertiary education to advance Chile's human capital; and, improved targeting of social programs, with attention to regional disparities in the allocation of social spending, particularly as it regards poverty among indigenous communities.Publication Poverty and Income Distribution in a High Growth Economy : The Case of Chile 1987-98, Volume 2. Background Papers(Washington, DC, 2001-08-30)The study analyzes Chile's strong economic growth, and well directed social programs, a combination that reduced the poverty rate in half, during a period of just eleven years. The previously noted trends in falling poverty, in terms of incidence, depth, and severity, continued into 1998, and the analysis shows there was unambiguously less poverty between 1994, and 1998, observed at all levels of income. Clearly, income poverty is related to, and impacted by a number of important factors, such as level of education, larger families, or families headed by women, and employment opportunities. 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This theme is follows from the priorities set in President Aquino's Social Contract and the emerging 2011-2016 Philippines Development Plan (PDP). The PDP details the vision of inclusive growth and poverty reduction that underlies the social contract (chapter one). Accordingly, the PDP focuses on three strategic objectives: (1) attaining a sustained and high rate of economic growth that provides productive employment opportunities, (2) equalizing access to development opportunities for all Filipinos, and (3) implementing effective social safety nets to protect and enable those who do not have the capability to participate in the economic growth process. While the country's development agenda remains broadly the same over the last decade, the Aquino government is focusing on stepped-up implementation and delivery. The pressing development issues confronting the Philippines in 2011 are not radically different from those of previous years. 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