Ecuador Conference Social Policy Expansion in Latin America Candelaria Garay Kennedy School of Government Harvard University
Expansion of Social Policy, South America and Mexico • Expansion of transfers and social services for populations traditionally excluded from social policy (Labor-market outsiders) • Transformation of the incomplete or truncated structure of social policy in the region • Main innovations: old-age pensions, cash transfers for households with children below 18 and health services.
Distinctive Features of New Benefits • Meaningful scope of coverage • Limited discretion in access to benefits and services • Positive social and economic effects in several countries particularly concerning: – Infant mortality rates, school completion, income inequality, income stability among poorest households, growing economic activity in backward areas.
Population Excluded from Social Protection/Outsiders (percentage)
100 90 80 70 60 50 40 30 20 10 0
Argentina
Uruguay c.1990
Mexico c. 2000
Bolivia c.2010
Peru
Pensions Non-contributory benefits for people 65+ Modes of expansion: -Creation of a universal pension program - Inclusion of outsiders in the existing contributory system (i.e., flexibilizing eligibility conditions) -Creation of a targeted pension program for outsiders
Outsiders 65+ Receiving Pension Benefits c. 2010 (percentage) 100 90 80 70 60 50 40 30 20 10 0
Bolivia
Uruguay
Ecuador
Mexico
Cash Transfers for Households with Children Cash transfers for households with school-age children often conditional on school attendance and health checkups. Modes of expansion: -Extension of a pre-existing program of family allowances for insiders to outsider children. -Creation of a cash transfer program specifically for outsiders.
Outsider Children Receiving Cash Transfers c. 2010 (percentage) Chart Title 100 90 80 70 60 50 40 30 20 10 0
Bolivia
Argentina
Chile
Mexico
Health Services, c 2010 Coverage
Broad Moderate/low
Payment System Free Services Partly Subsidized Services Argentina Brazil
Uruguay Chile
Ecuador, Venezuela, Bolivia
Mexico, Peru
Future Social Agenda? • How to articulate contributory and non-contributory components of new welfare regimes • How to better coordinate different levels of government in the implementation of health services (funding, quality of services, oversight). • Pending Issues: - Housing Policy - Youth (education, skill formation, and Jobs)
Summary Outsiders Coverage
< 50%
>50% <60%
>60
> 70%
Argentina Uruguay
Brazil
Bolivia
< 70%
Chile
Mexico Venezuela
Ecuador Peru