Publication: Poor People in a Rich Country : Volume 1. Poverty Report for Argentina
Date
2000-03-23
ISSN
Published
2000-03-23
Author(s)
World Bank
Abstract
The study presents an overview on
Argentina's economic growth, income distribution, and
poverty, mostly as of 1991, when the country underwent a
period of adjustment, which remarkably led to a sharp
inflation drop, to the privatization of state-owned
industries, and to fostering foreign commerce, thus widening
the economy. Nonetheless, the study points out that all of
these adjustments affected the poor, particularly through
labor demand, exacerbated by the slowdown of the growth
process, resulting from the economic crises of 1995, and
1998. Recommendations include macroeconomic, and reform
policies to allow rapid growth, and stabilize the economy,
without inflation, for a substantial poverty reduction. The
elimination of centralized, collective bargaining labor
agreements, reduction of labor taxes, and severance
payments, would prod a funded, unemployment insurance
system, based on individual accounts, and thus, reduce the
high cost of labor. Temporary employment, and extended
programs should not be enforced under payroll taxes, to
allow exceptions for small scale enterprise development.
Accessibility of the poor to basic services should be
enhanced, mainly through greater investments in education,
and health care services. In addition, a strong system of
safety nets is recommended, through the identification of
expanding programs, to also provide emergency employment,
and income during potential crises.
Citation
“World Bank. 2000. Poor People in a Rich Country : Volume 1. Poverty Report for Argentina. © Washington, DC. http://hdl.handle.net/10986/14364 License: CC BY 3.0 IGO.”