Ecuador Conference Social Policy Expansion in Latin America

Candelaria GarayKennedy School of Government

Harvard University

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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.

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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.

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Population Excluded from Social Protection/Outsiders (percentage)

Argentina Chile Uruguay Brazil MexicoVenezuela Bolivia Ecuador Peru0

102030405060708090

100

c.1990 c. 2000 c.2010

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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

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Outsiders 65+ Receiving Pension Benefits c. 2010 (percentage)

Bolivia

Argentina

Uruguay

Brazil

Ecuad

orChile

Mexico

Peru0

102030405060708090

100

8

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.

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Outsider Children Receiving Cash Transfers c. 2010 (percentage)

Bolivia

Brazil

Argentina

Uruguay

Chile

Ecuad

or

Mexico

Peru0

102030405060708090

100

Chart Title

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Health Services, c 2010

Coverage Payment SystemFree Services Partly Subsidized Services

BroadArgentina

Brazil Uruguay

Chile

Moderate/lowEcuador, Venezuela,

BoliviaMexico, Peru

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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)

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Summary

OutsidersCoverage < 50% >50% <60% >60

> 70% ArgentinaUruguay

Brazil Bolivia

< 70% Chile Mexico Venezuela

Ecuador Peru