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2. Declining Inequality in Latin America in the 2000s: The Cases of Argentina, Brazil, and Mexico.
- Author:
- Nora Lustig, Luis F. Lopez-Calva, and Eduardo Ortiz-Juarez
- Publication Date:
- 10-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Between 2000 and 2010, the Gini coefficient declined in 13 of 17 Latin American countries. The decline was statistically significant and robust to changes in the time interval, inequality measures, and data sources. In-depth country studies for Argentina, Brazil, and Mexico suggest two main phenomena underlie this trend: a fall in the premium to skilled labor and more progressive government transfers. The fall in the premium to skills resulted from a combination of supply, demand, and institutional factors. Their relative importance depends on the country.
- Topic:
- Development, Economics, Emerging Markets, Globalization, International Trade and Finance, Poverty, and Social Stratification
- Political Geography:
- Brazil, Argentina, Latin America, and Mexico
3. The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico, and Peru: A Synthesis of Results
- Author:
- Nora Lustig
- Publication Date:
- 11-2012
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- We apply a standard tax-and-benefit-incidence analysis to estimate the impact on inequality and poverty of direct taxes, indirect taxes and subsidies, and social spending (cash and food transfers and in-kind transfers in education and health). The extent of inequality reduction induced by direct taxes and transfers is rather small (2 percentage points on average), especially when compared with that found in Western Europe (15 percentage points on average). What prevents Argentina, Bolivia, and Brazil from achieving similar reductions in inequality is not the lack of revenues but the fact that they spend less on cash transfers—especially transfers that are progressive in absolute terms—as a share of GDP. Indirect taxes result in that net contributors to the fiscal system start at the fourth, third, and even second decile on average, depending on the country. When in-kind transfers in education and health are added, however, the bottom six deciles are net recipients. The impact of transfers on inequality and poverty reduction could be higher if spending on direct cash transfers that are progressive in absolute terms were increased, leakages to the nonpoor reduced, and coverage of the extreme poor by direct transfer programs expanded.
- Topic:
- Development, Economics, Education, Health, and Poverty
- Political Geography:
- Brazil, Argentina, Latin America, Mexico, Peru, and Bolivia
4. Scholars Who Became Practitioners
- Author:
- Nora Lustig
- Publication Date:
- 08-2011
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Celebrated by academics, multilateral organizations, policymakers and the media, Mexico's Progresa/ Oportunidades conditional cash transfers program (CCT) is constantly used as a model of a successful antipoverty program. Here I argue that the transformation of well-trained scholars into influential practitioners played a fundamental role in promoting a new conceptual approach to poverty reduction, ensuring the technical soundness and effectiveness of the program, incorporating rigorous impact evaluation, and persuading politicians to implement and keep the program in place. The involvement of scholar-practitioners also helped disseminate the new CCT “technology” to many countries around the world quite rapidly.
- Topic:
- Development, Poverty, and Foreign Aid
- Political Geography:
- Mexico
5. Coping with Rising Food Prices: Policy Dilemmas in the Developing World
- Author:
- Nora Lustig
- Publication Date:
- 03-2009
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- Rising food prices cause considerable policy dilemmas for developing country governments. Letting domestic prices adjust to reflect the full change in international prices generates inflationary pressures and causes severe hardship for poor households lacking access to social safety nets. Alternatively, governments can use food subsidies or export restrictions to stabilize domestic prices, yet this exacerbates global food price increases and undermines a rules-based trading system. The recent episode shows that many countries chose to shift the burden of adjustment back to international markets. The use of corn and oilseed for the production of biofuel will result in a recurrence of such episodes in the foreseeable future.
- Topic:
- Agriculture, Development, Humanitarian Aid, and Markets
6. Investing in Health for Economic Development: The Case of Mexico
- Author:
- Nora Lustig
- Publication Date:
- 03-2006
- Content Type:
- Working Paper
- Institution:
- United Nations University
- Abstract:
- Health is an asset with an intrinsic value as well as an instrumental value. Good health is a source of wellbeing and highly valued throughout the world. Health is not only the absence of illness, but capacity to develop a person's potential. Health is also an important determinant of economic growth. Given the importance of health, both as a source of human welfare and a determinant of overall economic growth, the Popular Health Insurance (Seguro Popular) was first introduced in Mexico as a pilot programme by the federal government in 2001, becoming part of the formal legislation in 2003. This study looks at the current situation, and some of the early findings and improvements made so far with regard to public health coverage in Mexico.
- Topic:
- Development, Economics, and Health
- Political Geography:
- Central America and Mexico