Argentina : Poor People in a Rich Country, Volume 2. Background Papers

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.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2000-04-14
Subjects:ABSOLUTE POVERTY, ABSOLUTE POVERTY LINES, ADULT MALE, ANALYTICAL WORK, AVAILABLE DATA, AVERAGE POVERTY, AVERAGE POVERTY LINE, BASIC NEEDS, CALORIC INTAKES, COMMODITY BUNDLE, CONSISTENT POVERTY, CONSISTENT POVERTY LINES, CONSUMER PRICE INDEX, CONSUMPTION BEHAVIOR, CONSUMPTION EXPENDITURE, CONSUMPTION PATTERN, CONSUMPTION PATTERNS, CPI, DATA SET, DATA SETS, DEMOGRAPHIC COMPOSITION, ECONOMIC MANAGEMENT, ECONOMIC STABILITY, EFFECTIVE STRATEGY, EMPLOYMENT, EQUIVALENCE SCALE, EXPENDITURE SURVEY, EXPENDITURES, FOOD BASKET, FOOD BUNDLE, FOOD COMPONENT, FOOD CONSUMPTION, FOOD INTAKE, FOOD ITEM, FOOD ITEMS, FOOD NEEDS, FOOD POVERTY, FOOD SHARE, HOUSEHOLD CHARACTERISTICS, HOUSEHOLD EXPENDITURE, HOUSEHOLD INCOME, HOUSEHOLD LEVEL, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HUMAN CAPITAL, INCOME DISTRIBUTION, INCOME HOUSEHOLDS, INCOME INEQUALITY, INCOME LEVEL, INCOME POVERTY, INFLATION, LABOR MARKET, LIVING CONDITIONS, LIVING INDEX, LIVING STANDARD, LIVING STANDARDS, LOW INCOME HOUSEHOLDS, MATERIAL RESOURCES, NATIONAL INCOME, NON-FOOD BUNDLE, NON-FOOD COMPONENT, NON-FOOD COMPONENTS, NON-FOOD CONSUMPTION, NON-FOOD ITEMS, NON-FOOD NEEDS, NUTRITIONAL REQUIREMENTS, OFFICIAL POVERTY, OFFICIAL POVERTY LINE, OVERALL EXPENDITURE, PER CAPITA BASIS, POOR, POOR PEOPLE, POPULATION SIZE, POPULATION SUBGROUP, POVERTY ALLEVIATION, POVERTY ANALYSIS, POVERTY ASSESSMENT, POVERTY ASSESSMENTS, POVERTY COMPARISON, POVERTY GAP, POVERTY LINE, POVERTY LINES, POVERTY MEASURE, POVERTY MEASUREMENT, POVERTY PROFILE, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, POVERTY STUDIES, POVERTY THRESHOLD, POVERTY WORK, PRICE VECTOR, PUBLIC SERVICES, PUBLIC UTILITIES, PURCHASING POWER, REAL TERMS, REGIONAL BASKETS, REGIONAL DIFFERENCES, REGIONAL POVERTY LINES, REGIONAL PRICE INDEX, REPRESENTATIVE SAMPLE, RESULTING POVERTY LINES, RURAL AREAS, RURAL POPULATION, RURAL POVERTY, SAMPLE SIZE, SOCIAL DEVELOPMENT, SOCIAL PROGRAMS, SOCIAL PROTECTION, SOCIAL SERVICES, TARGETED SOCIAL PROGRAMS, UNEMPLOYMENT, UNEMPLOYMENT RATES, URBAN AREAS, URBAN POPULATION, WAGES ECONOMIC GROWTH, POVERTY, INFLATION RATE GUIDELINES, PRIVATIZATION, STATE-OWNED ENTERPRISES, INTERNATIONAL TRADE, ECONOMIC CRISIS, MACROECONOMIC SHOCKS, REFORM POLICY, ECONOMIC STABILIZATION, LABOR ADMINISTRATION, TAXATION, SEVERANCE PAY, UNEMPLOYMENT INSURANCE, TEMPORARY EMPLOYMENT, PAYROLL TAXES, ENTERPRISE DEVELOPMENT, BASIC SERVICES, EDUCATION SECTOR, PUBLIC HEALTH CARE, SOCIAL SAFETY NETS, INCOME GENERATION,
Online Access:http://documents.worldbank.org/curated/en/2000/03/728792/argentina-poor-people-rich-country-vol-2-2-background-papers
https://hdl.handle.net/10986/14971
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Summary: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.