Financing Social Policy www.ebook3000.com This page intentionally left blank Financing Social Policy Mobilizing Resources for Social Development Edited by Katja Hujo and Shea McClanahan www.ebook3000.com © UNRISD 2009 All rights reserved No reproduction, copy or transmission of this publication may be made without written permission No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988 First published 2009 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010 Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world Palgrave®and Macmillan®are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN 978–0–230–57664–3 hardback This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin A catalogue record for this book is available from the British Library A catalog record for this book is available from the Library of Congress 10 18 17 16 15 14 13 12 11 10 Printed and bound in Great Britain by CPI Antony Rowe, Chippenham and Eastbourne 09 Contents List of Tables and Figures vii Foreword Thandika Mkandawire xi Preface and Acknowledgements Katja Hujo and Shea McClanahan xii List of Abbreviations and Acronyms xiv Notes on the Contributors xviii Introduction and Overview Katja Hujo and Shea McClanahan Part I Global Dimension: Paradigms and Resources Social Exclusion Policies and Labour Markets in Latin America Rubén M Lo Vuolo Financing for Development: International Redistribution Isabel Ortiz Part II Taxation and Aid 25 27 53 87 How Can the Financing of Social Services be Made Pro-Poor? Enrique Delamonica and Santosh Mehrotra Financing Developmental Social Policies in Low-Income Countries: Conditions and Constraints Alice Sindzingre Aid and the Financing of Public Social Sector Spending Oliver Morrissey Part III Mineral Rents 89 115 141 163 Natural Resource Wealth, Development and Social Policy: Evidence and Issues Andrew Rosser Mineral Rents and Social Policy: The Case of the Norwegian Government Oil Fund Erling Holmøy v www.ebook3000.com 165 183 vi Contents Part IV Social Insurance and Pension Funds Social Insurance (Pensions and Health), Labour Markets and Coverage in Latin America Carmelo Mesa-Lago 10 Pensions and Pension Funds in the Making of a Nation-State and a National Economy: The Case of Finland Olli E Kangas 11 Provident and Pension Funds and Economic Development in Selected Asian Countries Mukul G Asher Part V Remittances 213 215 246 264 291 12 Remittances and Social Development Hein de Haas 13 Remittances and Social Development: The Latin American Experience Manuel Orozco 293 14 Conclusions Katja Hujo and Shea McClanahan 353 Index 362 319 List of Tables and Figures Tables 3.1 3.2 6.1 6.2 6.3 A6.1 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 9.1 9.2 9.3 9.4 9.5 Net financial transfers to developing countries, 1995–2006 (selected years/billions of dollars) International instruments to finance social policy Determinants of social sector spending HDI, aid and social spending Infant mortality, aid and social spending Some summary statistics GDP and individual consumption per capita measured in 2000 prices and by PPP in 2000 (OECD = 100) GDP: volume indices, 2000 = 100, and average annual growth rates GDP per capita measured in 2000 prices and PPP in 2000 (average annual growth rates in per cent) Labour market participation for different age groups and hours of work in 2005 Government expenditures and revenues in Norway (current prices/per cent of GDP) Macroeconomic development in the base scenario (average annual growth rates/per cent) GDP shares of government revenues and expenditures in the baseline scenario (per cent) Projected development in the number of pensioners, average annual benefits ex ante indexation and the labour force in the baseline scenario Central Government Pension Fund – Global (CPF), expected real return and Structural Non-petroleum Budget Deficit (SNBD) (billions NOK, current prices) Population groups difficult to cover by social insurance in Latin America, 2001–04 (in percentages) Proportional size of groups difficult to incorporate and legal and statistical pension coverage in selected countries, 2000–04 Social insurance pension coverage of the labour force by private and public contributory systems, based on active contributors Social insurance health coverage of the total population and the labour force in Latin America, 1984–2004 Social insurance pension coverage of the population age 65 and above in private and public systems, 2000–05 vii www.ebook3000.com 62 74 146 151 151 160 185 185 185 187 187 199 201 202 205 218 221 223 225 230 viii List of Tables and Figures 10.1 10.2 10.3 11.1 11.2 11.3 11.4 11.5 12.1 12.2 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 Investments from the NP funds, 1940–57 (per cent) Investment portfolio of the Finnish pension funds, 1997–2004 (per cent) Investment portfolios by investment categories in Finland and abroad, 2000–04 ($ billion) Macroeconomic indicators of selected Asian countries, 2006 Demographic indicators in selected Asian countries Human development and competitiveness rankings of selected Asian countries Selected labour force indicators of sample countries, latest estimates Thailand: Contribution rates for the SSO schemes (per cent) Main phases in migration and development research and policies Relation between household migration stage, consumption, and investments Central America in the global economy, 2005 (US$ millions) Remittances and key economic indicators Remittances and other indicators Impact of remittances on Latin American and Caribbean economies Monthly income, not including remittances Amount of money received per remittance transaction Remittance expenditures on food by level of education Remittance expenditures on food by Haitian recipients, per every $100 received Remittance recipient families who regularly purchase meat and milk Remittance expenditures on health care by Haitian recipients, per every $100 received Origin of recipient household investments in health care in Guatemala Expenditures in hospital care by households with at least one member abroad Expenditures in medicine and laboratory tests Education and income of recipients who use remittances to fund education Remittance expenditures on education by Haitian recipients, per every $100 received Origin of recipient household investments in education in Guatemala Members of emigrants’ families who are currently attending a formal educational institution (in the home country) Expenditures in education by households with at least one member abroad Breakdown of expenditures in education Basic profile of five cities 251 257 258 267 268 270 270 278 294 302 321 322 323 324 325 326 327 327 328 328 329 329 330 331 331 332 333 334 334 338 List of Tables and Figures 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 Monthly cost of living, income and remittances Business activities of local economies (number) Remittance recipient households Remittance recipients who have invested in a small business or have savings accounts (%) Education, health and finance institutions Type of school obligations people engage (%) Businesses operating in education-related activities Per capita tax revenue in selected Latin American and Caribbean countries, 1980–2004 (US$) Per capita expenditure in health and education (H&E) in selected Latin American and Caribbean countries, 1980–2004 (US$) OLS regression results on revenue OLS regression results on expenditures in health and education Percentage distribution of locations by type of business ix 338 340 340 341 342 343 343 344 344 345 345 347 Figures 3.1 3.2 3.3 3.4 and 3.5 3.6 3.7 4.1 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Regional wealth shares (%) Official development assistance, 1990–2010 How official development assistance is used in sub-Saharan Africa SWAPs in theory and practice Securitizing workers’ remittances The International Financial Facility Complex causalities Government expenditures in per cent of GDP (current prices) The composition of total consumption (current prices) Decomposition of the growth in man-hours allocated to service provision by the local government sector Index (1988 = 100) The composition of government consumption of individual services (per cent of GDP in 1999) The composition of government social security expenditures in 2003 The composition of social security expenditures in different countries in 1999 Projected growth in GDP shares of age-dependent government expenditures (Mainland sector GDP for Norway), 2000–50 (per cent) Persons of working age receiving social security benefits (1000 persons) Projection of the age composition of the Norwegian population www.ebook3000.com 54 56 63 76 78 78 105 188 188 189 190 190 191 193 193 197 x List of Tables and Figures 8.10 8.11 10.1 11.1 11.2 11.3 13.1 13.2 13.3 Projected payroll tax rate, given the fiscal policy rule (per cent) The Central Government Pension Fund (foreign) relative to GDP in current prices The percentage of pension funds in relation to GDP in the European Union, 2002 Malaysia: investment allocation of EPF, 1991–2005 Thailand: asset allocation of GPF Thailand: Rates of return from GPF, 2001–05 Annual remittance flows to Latin America and the Caribbean Dominican Republic: Remittances, prices, interest and exchange rates Salcaja: Number of businesses by starting year of operation 200 207 256 274 280 281 320 336 339 Index 307, 309, 311, 348, 353–4, 356–9, 361 development 1, 2, 4–7, 8, 10, 12, 13–14, 16, 18, 20, 30, 39, 53, 57–60, 61, 63, 64–7, 69, 72, 75, 80, 81, 89, 91, 97, 98, 117, 119, 126, 130, 132, 165–6, 169, 170–2, 173, 175, 177, 178, 202, 204–5, 216, 235, 240, 242, 247–8, 266, 284, 287, 288, 293–5, 296, 297, 299, 300–2, 303, 306–7, 309, 310, 311–12, 319–20, 324, 343, 346, 350, 353–4, 356, 357, 359 economic 1, 2, 4–5, 6, 56, 60, 64, 99, 175, 177, 260, 266, 281, 308–9, 348, 349, 358, 360 human 8, 11, 65, 89, 90, 92, 104, 128, 141, 142, 148, 160, 170, 246, 264, 269–70, 264, 269–71, 354 social 1, 2, 3, 4–5, 6, 7, 8, 10, 12, 13, 18–20, 61, 63, 67, 76–7, 79–80, 99, 101, 102–5, 106–7, 110, 142, 159–60, 172, 173, 178, 264–5, 281, 286, 295, 320, 325, 355, 361 development aid 55, 67, 70, 72, 74, 297 development assistance 6, 55 development banks 63, 68, 73 development capacity 39 development community development economics 125, 128 development finance 7, 8, 18, 21, 53–61, 70, 77 new sources of 56–7 developmental loans 70 developmental states 15, 16, 247, 252 in East Asia 10, 13, 14, 115, 116, 118, 120, 124 in Latin America 126 lessons for low-income countries 130–3 distributional justice 8, 57, 69, 252, 260 domestic servants 15, 215, 217, 221, 235, 236, 237, 241–2 and social insurance 219–20, 237 Dominican Republic 19, 215, 216, 218, 223, 224, 225, 229, 230, 231, 237, 241, 244, 321, 323, 324, 325, 344, 347 and the banking crisis 335–6 ‘Dutch disease’ 8, 13, 18, 71, 118, 120, 124, 158, 172, 184, 195, 196, 205, 309, 357 East Asia 58, 81, 120, 131, 177, 283 economic crisis 277, 278 365 Newly Industrializing Countries (NICs) 176 East Asian development state 14, 130 Economic Commission for Latin America and the Caribbean (ECLAC) 47, 233 economic crises 29, 30, 227, 336, 337, 359 Asian economic crisis 90, 278 economic development 1, 2, 4–5, 55, 56, 60, 64, 99, 175, 177, 199, 204, 205, 260, 266, 308–9, 349, 354, 358, 360 economic growth 5, 8, 10, 11, 16, 17, 19, 30–1, 64, 96, 99, 106–7, 110, 159, 166, 168, 169, 172, 173, 178, 184, 222, 248, 260, 265, 272, 283, 285, 301, 303, 345 and aid 149 and East Asian NICs and mineral rents 12–13, 165 and poverty reduction 102–5 and remittances 308–9 Latin America 29, 35, 45, 227, 234 Norway 184, 197, 203, 209 economic liberalization 28, 176 economic patronage 175, 321 economic volatility 5–6, 31 Ecuador 100, 216, 217, 221, 226, 237, 239, 240, 242, 321, 325 Ecuadorian migrants to the United States 304 education 4, 11, 17, 18, 19, 20, 46–7, 55, 59, 69, 74–5, 81, 82, 93, 94–5, 97–8, 102, 104, 106, 108, 116, 122–3, 125, 126–7, 128–9, 142, 143–5, 148–9, 152, 155, 160–1, 179, 189, 190, 194, 197, 242, 265, 270, 282, 286, 288, 296, 302, 303, 307, 309, 311, 319, 324–7, 329–34, 338, 339, 341–9, 355, 359 primary 67, 93, 97, 131, 148–9, 156–7, 295 secondary 157, 325, 330, 332–3, 341, 346, 349 tertiary 273, 330 Egypt 66, 305 migration patterns 306 El Salvador 215, 216, 217, 218, 219, 221, 223, 224, 225, 229, 230, 231, 238, 321, 322, 324, 325, 327, 328, 330, 338, 340, 343, 347 and earthquake 335 and migration 337–9 Employer of Last Resort (ELR) 6, 30, 40–2, 48 www.ebook3000.com 366 Index employment 6, 8, 28–9, 30–1, 35–6, 40, 42, 45, 47, 59, 64, 67–8, 71, 81, 101, 105–6, 118, 194, 196, 198–9, 203, 208, 217, 222, 227, 238, 248, 252, 253–5, 257, 258–60, 266, 271, 277, 280, 295, 298, 299, 302, 303, 308, 338, 360 formal 2, 31, 39, 41, 46, 283, 355 informal 2–3, 32, 118 see also self-employment; unemployment employment assistance 36 employment generation 5, 301 employment growth 189, 272 employment schemes 15, 35, 66 energy 58, 81, 186, 195 see also natural resources entrepreneurial spirit 31, 296, 307, 337 lack of 39 entrepreneurialism 40, 219, 303, 346, 348 see also microenterprises; microentrepreneurs environment 145, 294 institutional 310, 311, 312, 359 environmental externalities 56 environmental impact environmental standards 58, 61, 80–2, 101, Esping-Andersen, Gøsta 27 Ethiopia 124 Euro-Creativity Index 246 European Union 54, 55, 59, 68, 69, 74–5, 82, 189, 256, 260 Social Cohesion funds 59 excise taxes 91, 106, 107–8 Exim Bank 58, 81 expenditure 3–4, 6–7, 9, 42, 46, 53, 60, 61, 65, 69, 74, 79, 80, 95, 100, 105–6, 115, 122, 125, 143, 146, 148, 149, 154, 156–7, 199–200, 208, 283, 353, 360–1 aid 55 private 94, 319 ‘pro-public’/‘pro-poor’ 142, 149, 155 public 40–1, 43, 44, 89–90, 98, 104, 105, 107, 108, 109, 117, 122, 124, 126–7, 141, 142, 159, 161, 183–4, 186–8, 190–4, 197, 200–1, 202–3, 206, 209, 273, 277, 285, 307, 357 remittance 19, 299, 300–4, 310, 326–8, 331 social 2, 4, 11, 28, 82, 133, 328–9, 330–2, 333–4, 339, 343–5, 355, 358, 360 expenditure policies expenditure tracking/monitoring 154 exports 12, 58, 61–2, 64, 71, 96, 116, 118–20, 122, 131, 158, 167–70, 172, 174–5, 177, 186, 198, 200, 202, 266, 283 see also individual countries export dependence 116, 120 Extended Structural Adjustment Facility (ESAF) 90 externalities 10, 46, 56, 116, 143–4, 307 extrabudgetary funds 98, 109 family allowances 45–6, 128, 237 see also under individual countries Fiji 297 finance 6, 9, 10, 13, 41, 53, 56, 65, 68, 77, 78, 99, 115, 116, 123, 141–3, 145–7, 155–6, 157, 181, 201, 203, 215, 275, 297, 330, 356–7, 358, 361 functional 40 public 2, 95 services 39 see also development finance financial architecture 64 financial assets 183, 204, 206, 208 financial capacities 272 financial commitments 231 financial constraints 8, 231, 332 financial contributions 14 financial costs 231, 273 financial crises 28, 71, 131, 334 see also East Asia, financial crisis financial education 33 financial flows 53, 56, 62–3, 64, 79 financial globalization 40 financial indicators 324 financial institutions 28, 60, 91, 94, 116, 118, 271, 287, 339–41, 346, 347–8, 356 financial instruments 53, 77, 285 financial integration 121 financial liberalization 64 financial management 15, 81, 94, 288 financial markets 33, 110, 285 financial paradigm 46 financial policies 78 financial products 33, 37 financial resources 7, 15, 48, 63, 98, 293, 310 financial risks 61, 65 financial robustness 197, 199 financial services 37, 110, 119 Index financial support 242 financial sustainability 14, 234, 278, 358 financial systems 37–8, 72 financial tools 18, 320 financial transfers 62 financial viability 180, 194, 203 financial wealth 195 financing 1, 2, 8, 11–15, 17–18, 20, 27, 39, 41, 44, 46, 53–81, 115–34, 141–61, 178, 199, 234, 238, 239, 253, 255, 258, 269, 275, 319, 353–4, 359–61 access to 6, 38–9, 71, 104, 115, 175, 198, 277, 335, 343, 348 constraints on debt gaps 75 mechanism 56, 108, 354, 360, 361 ‘pro-poor’ 8, 89–110 regimes 360 retirement 284 social policies 3–4, 6–7 sources 1, 7, 15, 233, 360 techniques 360 see also development finance financing instruments 4, 7, 8–9, 313 Finland 246–63, 354, 358–9 employment-related pensions 253–5 First National Pension Scheme of 1937 249–52 National Pension Reform of 1956 252–3 pension funds 16, 248, 249, 255–8 social capital and 248, 255, 258–9 social policy as developmental strategy 248 fiscal balance fiscal consolidation 90 fiscal constraints 17, 174 fiscal costs 3, 273 fiscal crises 2, 100 fiscal deficit 41, 67, 122, 123, 134, 238 fiscal discipline 67, 82, 206, 209 fiscal gap 71 fiscal impact 277 fiscal inertia 90 fiscal management 159 fiscal neutrality 14, 358 fiscal policies 1, 7, 13, 41, 46, 82, 99, 105–7, 116, 120, 124, 174, 183, 184, 186, 196, 199–200, 202–3, 204–6, 209, 210, 354 fiscal policy rule 13, 183–4, 199–200, 202, 203, 204–6, 208, 210 fiscal planning 367 fiscal problems 34, 120 fiscal reforms 283, 285 fiscal resources 10, 15, 120, 222, 226, 354 fiscal response models 123 fiscal revenues fiscal risks 284 fiscal space 2, 6, 7, 20, 21, 53, 61, 63–4, 77, 79, 122, 354, 360–1 fiscal structures 124 fiscal subsidies 219, 222, 228, 234, 235, 236, 238, 239, 242–3 fiscal surplus 41, 42, 43, 46 fiscal sustainability 124, 184, 200, 202, 203, 206, 209 fiscal transfers 227, 231, 240 ‘flexibilization’ 15, 119, 215, 217 see also labour foreign aid 9–11, 72, 115, 120, 125, 131, 133, 177, 298, 310, 345 see also development aid foreign direct investment (FDI) 18, 124, 177, 297, 308 foreign exchange reserves 5, 6, 7, 53, 62–5, 71, 79, 158, 173, 321 France 70, 82, 117, 126, 256 Free Trade Area of the Americas (FTAA) 59 full employment 40–1, 105–6, 107, 110 see also employment; self-employment funds 7, 11, 13, 20, 37, 39, 43, 57, 60–1, 65, 67–8, 72–3, 75, 78, 79, 82, 94, 97, 98–9, 108, 128, 149, 153–6, 157, 165, 183, 208, 227, 228, 234–5, 237, 250, 252, 261, 324, 328, 331, 334, 343, 346, 347, 349, 351 compensation 239, 242, 243, 244 investment 76–7 pension 4, 14–17, 18, 32–3, 34, 46, 204–9, 248, 250–2, 253–60, 264–87, 319, 357–9 ring-fenced 98, 147 stabilization 119 tax 8–9 fungibility 9, 19, 21, 53, 66, 70–1, 79, 123, 143, 147–8, 154 Gates Foundation 57 gender 93, 215, 235, 238, 305, 319, 326, 328, 330 and tax reform 101 consumption patterns equality 1, 4, 8, 131, 295, 358 inequality 16, 104, 226, 228–9, 238–9, 242, 294, 310 www.ebook3000.com 368 Index general budget support (GBS) 7, 68, 69, 74, 147 general equilibrium model 99, 196, 198 Germany 47, 70, 193, 256, 260 Ghana 73, 80, 109, 123, 306 Gini coefficient 131, 337 Gini index 28 Global Advice for Vaccines and Immunization (GAVI) 78 Global Social Trust 72 Global Welfare Agency 72 globalization 6, 40, 54, 59, 72–3, 79, 80, 257, 264, 275, 287, 355 goods 2, 35, 70, 82, 91, 93, 101, 116, 117, 198, 210, 335 consumption 82 health 234 monopolized 63 public 10, 115, 118, 126, 128, 130, 142, 143–5, 148, 158–9 social 105 tradable/traded 124, 186, 196 governance 9, 20, 71, 124, 276, 281, 288, 357, 360 global 57, 72, 355 governance structures 5, 282, 285, 304 governments 3, 10–11, 15, 16, 20, 21, 33–4, 37, 40–1, 47, 53, 55–7, 58, 60, 65, 66, 67, 68, 72–5, 76, 77, 79, 80, 81, 82, 89, 94, 97, 101, 106, 115, 120, 121, 124, 132, 149, 155, 159, 168, 176, 178, 183, 186, 195, 202, 206, 208, 210, 216, 222, 226, 232, 233, 238, 242, 255, 301, 310, 320, 346, 348, 350 see also individual countries government bonds/securities 7, 75–6, 276–7, 284, 285–6, 358 government intervention 27, 33, 40, 119 government policy 9, 105, 119, 124, 149, 177, 204, 337, 343–5 government revenues 9, 12, 13, 99–100, 105, 117, 119, 147, 149, 155, 173, 201 government services 90, 158, 188–90, 209 government spending/expenditure 11, 41, 53, 63, 64, 67 70–3, 98, 100, 105, 106, 117, 123, 124, 131, 141–3, 146, 149, 150, 152–4, 156–7, 160, 183, 184, 186–8, 190, 193–4, 197, 201–3, 206, 208, 209, 210, 285, 319 Great Britain 126 growth 21, 37, 67, 68, 71, 82, 116, 117, 118, 122–3, 124, 125, 128, 130, 131, 132–3, 141–2, 144, 150, 152, 153, 156, 183, 192, 193, 195, 200, 202, 204, 206, 208–10, 227, 234, 257, 266, 267, 281, 321, 337, 344 demographic 129, 345 economic 5, 8, 10, 11, 12, 13, 16, 17, 20, 29, 30–1, 35, 45, 47, 89, 96, 99, 102–5, 106–7, 110, 120, 149, 159, 165–6, 168, 169, 172, 173, 176–8, 184–6, 197–9, 203, 209, 222, 234, 248, 260, 265, 272, 283, 285, 301, 303, 308–9, 345 employment 189, 219 of local currency bond markets 75 labour force participation 191 productivity 189, 196, 198, 200, 201 pro-poor 81 public debt 48 remittance flows 18 volatility of 59 growth-mediated strategy 104–5 growth-oriented policies 10, 64, 71, 109, 116, 169 growth–poverty–inequality nexus 125–6 Guatemala 216, 217, 226, 321, 325, 327 and education 329–33 and health care 328–9 and Hurrican Stan 334–5 Vice-President’s Office 328 Gulf countries 306 Guyana 117, 322, 323, 324, 325, 347 Haiti 216, 217, 218, 219, 222, 223, 224, 226, 230, 232, 299, 321, 323, 324, 347 and remittances 321–2, 327–8, 331 health 4, 5, 11, 18, 19, 47, 55, 59, 61, 66, 67, 69, 75, 78, 81, 93, 95, 98, 102, 104, 106, 108, 117, 123, 126, 128, 129, 131, 132, 142, 144–5, 155, 160, 165, 179, 187, 190, 192–3, 215, 216, 219, 222, 223–4, 227, 237, 238, 241–2, 253, 271, 282, 297, 302, 303, 306, 311, 312, 319, 324–5, 326, 329–30, 331, 338, 339, 341, 342, 346, 348–9, 355, 358, 359 cost recovery 93–5 expenditure on 5, 9, 11, 14–17, 20, 40, 66–7, 82, 93–4, 126, 146, 148–9, 152–3, 273, 344–5 improvements 141 Index investment in 328–9 see also under individual countries health care 14–17, 20, 92, 93–5, 122, 127, 144, 156–7, 200–1, 203, 219, 220, 226–7, 228, 229, 231–2, 233, 234, 236, 239, 241, 243, 244, 265, 273, 286–7, 295, 303, 309, 319, 325, 328, 349, 358 health costs 66, 82 health institutions 61, 94, 153, 156, 157 health insurance 15, 40, 94, 238, 272, 287, 346, 349 health outcomes 69, 148–9 heavily indebted poor countries (HIPC) initiative 3, 62, 64, 154–5, 157 HIV/AIDS 57, 66, 67, 145 Honduras 216, 217, 218, 219, 220, 221, 223, 224, 225, 228, 229, 230, 239, 321, 347 housing 16, 160–1, 244, 248, 251, 256, 265, 273, 275, 286–7, 288, 295, 302–4, 311, 326, 358 human capabilities 295 human capital 110, 123, 127, 142, 158, 294 enhancement of 286–7 formation 306–7, 358 human development 8, 65, 89, 90, 104, 128, 141, 142, 264, 295 and economic growth 102 indicators 11, 269–70 outcomes 104, 148, 354 human development index (HDI) 148–9, 152, 156, 160, 170, 246 human resources 282, 293, 306 Hurricane Stan 19, 334–5 implementation capabilities 286 incentive policies 47 income 2, 11, 15, 18–19, 20, 27, 30, 31, 33, 35–6, 37–8, 46, 54, 64, 68, 89, 90–1, 97, 99, 101, 107, 119, 126, 146, 149, 150–2, 156, 158, 160, 166, 170, 185, 191, 192, 195, 198, 199, 200, 205, 206, 207, 215, 220, 222, 227–30, 231, 232, 235, 236, 238–9, 240, 242, 243, 247, 250, 253, 259, 264, 265, 266, 270, 275, 282, 283, 284, 286, 288, 293, 295, 298, 299, 301, 302, 304, 306, 309–10, 311, 321, 324, 325, 326–7, 330–2, 335, 337–8, 339, 344, 345, 355, 360 369 access to 39 basic 40, 42–4, 46 concentration 3, 54 differences in 27 distribution/redistribution 8, 17, 34, 45, 53, 70, 73, 91, 99, 103–6, 116, 133, 186, 299, 300 generation 34 inequality 131, 294, 295, 299, 300, 337 multipliers 295 risks 294, 311 security 280, 358 shocks 295, 296–7, 309 smoothing 359 strategies 39 taxes 9, 44, 46, 91–2, 97, 99–100, 101, 117, 119, 133, 194, 200, 239, 275, 279 unearned 168 income poverty 91, 102–6, 149 reduction income stability 32, 298 income transfer 43, 45–6, 265 India 54, 56, 58, 66, 73, 75, 82, 90, 94, 95, 96, 97, 99–100, 126, 129, 261, 307 Right to Information Act individualism 8, 92 Indonesia 13, 17, 66, 81, 90, 94, 127, 134, 172, 173, 175–7, 264, 266, 267, 268, 269, 270 provident and pension funds 271–3 SJSN law 272 industrialization 14, 186, 208, 247, 248, 251, 257, 260, 354 industrialized countries 2, 14, 91, 94, 97, 99, 102, 137 inequality 2, 19, 32, 33, 68, 105, 131–2, 133, 215, 227–30, 242–3, 244, 282, 295, 301, 303, 309, 320, 349 and growth 125–6 and migration 299–300 and social policy 125–6 economic 179, 227–30, 294, 337 gender 16, 104, 226, 227–30, 294, 310 in global wealth 6, 21, 53 in social insurance 15 reduction 238–9 infant mortality 141, 148, 152, 170, 326 infant mortality rate (IMR) 67, 148–9, 150, 151, 156, 160, 166 ‘informal’ sectors 10, 15, 28–9, 99, 109, 118–19, 122, 125, 127, 129–30, 133, 215, 217, 220–2, 226–7, 232, 234–7, www.ebook3000.com 370 Index ‘informal’ sectors – continued 241, 242–3, 269–70, 272, 280, 283, 297, 355, 56, 358 employment 2, 3, 6, 15, 31, 36, 42, 115–16, 118, 280, 283, 327 informality see labour market, informality infrastructure 7, 11, 17, 47, 53, 58, 60–1, 64, 68, 79, 81, 82, 93, 94, 98, 100, 107, 128, 142, 157–8, 177, 189, 248, 251–2, 258, 259, 265, 282, 285, 309, 311, 334, 358 see also individual countries institutional environment 19 Inter-American Development Bank (IDB) 38, 347 proposals for health coverage 234–5 International Financial Facility (IFF) 7, 77, 78–9 international financial institutions (IFIs) 6, 28, 48, 60, 80, 91, 106, 107, 116, 118, 119, 122, 128, 356 International Financing Facility for Immunization (IFFIm) 77, 78 International Labour Organization (ILO) 225, 233 International Monetary Fund (IMF) 61, 71, 121, 122 International Evaluation Office 90 International Organization for Migration (IOM) 335 International Social Security Association (ISSA) 232 International Tax Organization (ITO) proposals for 57 investment 3, 10, 13, 17, 18–19, 39, 56, 59, 61–2, 65, 70, 71, 74, 76, 80–1, 101, 103, 124–5, 127, 171, 177, 178, 186–7, 201, 247, 248, 255–7, 260–1, 265, 273–7, 278, 280, 282, 286, 288, 293–6, 300–3, 307, 309–12, 319, 323, 325, 339, 343, 346–8, 355, 357, 358–9 and savings 283–5, 287 education 329–33 foreign 16, 101, 132, 176, 257–8, 261 health 328–9 infrastructure 11, 53, 79, 249–52 nutrition 326–8 social 2, 7, 60, 63, 67, 74, 78–9, 131, 345 South–South 58 see also foreign direct investment (FDI) investment funds 76–7 investment policies 15, 256–7, 274, 279 investment portfolios 16, 157–8, 279, 346, 348 investment risk 264, 279 investment strategy 16 Iraq war 55 Islamic Development Bank 60 Japan 55, 131 Jamaica 100, 321 Jamsostek 271–2, 282 Kaldor, Nicholas 123 Kazakhstan 77 knowledge 144–5, 246, 307, 325, 348 transfers 294 see also education Korea, Republic of see Republic of Korea labour 4, 42, 59, 81, 82, 103, 110, 158, 177, 186, 196, 198, 203, 210, 233, 234, 258, 261, 283, 302, 304, 306, 337–8 labour flexibility 27, 28–9 labour force 14, 168, 186, 191, 194–5, 196–7, 198, 215, 217, 220, 221–3, 225–9, 232–3, 236, 241–4, 269–70, 273–4, 275, 281, 282–3 labour markets 4, 5–6, 15, 17, 27–8, 29, 30, 32, 35–6, 40, 46, 117, 130–1, 186–7, 191–2, 194, 206, 215–44, 250, 254–5, 258, 266, 269, 278, 324–5, 330, 358 child 46 flexibilization 15, 35, 215, 217, 236, 358 informality 6, 10, 15, 29, 32, 35, 117, 119, 215, 241 mobility 253, 272, 282, 349 productivity 198, 200, 203 reproductive 8, 93, 102–3 standards 81, 101 see also individual countries labour migration 293, 296–7, 301–2, 309, 350 labour relations 27, 32, 46 labour statutes 32, 269, 358 land reform 104, 131 late industrializers 1, 131, 354 Latin America 5–6, 14–15, 19–20, 21, 27–47, 53–4, 59, 60–2, 65, 77, 84, 90–1, 94, 96, 97, 99–100, 107, 126, 215–44, 319–50, 358 Index and the social question 44–7 elderly 231–2, 241 gender inequalities 228–30, 242 health systems 216, 226 labour markets 217–22 pension systems 224–5 poverty 240–1 social exclusion policies 5, 27–48 social insurance programmes policies for extension of 232–41 social protection systems (SPS) 27–9, 39, 44–5, 47 urban–rural inequality 229–30 Latin American Reserve Fund (FLAR) 61 League of Arab States 59 Lesotho 299 less developed countries (LDCs) 41, 261 see also individual countries liberalization 2, 75, 81, 109, 127, 133, 210, 257 markets 2–3, 16, 28, 64, 176 trade 9–10, 81, 107, 115–16, 120–2 livelihoods 89, 246, 255, 259, 297, 301, 303–4, 307, 309, 311 insurance 283 risks 296 security 296, 324 strategies 296, 303, 309 loans 16, 37–8, 46, 58, 60, 64, 68, 70, 73, 80–1, 90, 123, 159, 222, 237, 244, 251, 274–5, 286, 349, 355 commercial 55, 58, 73, 75, 257–8 to alleviate poverty 37 low-income countries 3, 4, 8, 9–11, 15, 20, 36–7, 58, 63–4, 66, 77, 90, 95, 96, 107, 115–22, 124, 125–7, 130–3, 146–7, 150, 152–3, 156, 157, 160, 222, 227, 230, 233–8, 240–2, 265, 297, 324, 329–30, 348, 355, 256, 359, 360 Luxembourg 55 Madagascar 142 Malaysia 13, 17, 56, 75, 81, 94, 172, 264, 266–70, 277, 282–4, 286–8 provident and pension funds 273–5, 282 malaria 57, 80, 144–5 manufacturing activities 67, 109, 120, 168, 172, 177, 186, 195–6, 208, 262, 338–40 investment 171 371 markets 2, 5–6, 9, 15, 19, 29, 36–9, 48, 59, 64–5, 70, 71, 73, 82, 103–4, 108–10, 125, 129, 130, 133, 143–4, 158, 165, 175, 186, 198, 222, 233, 235, 248, 255, 282, 311–12, 325, 336, 337–8, 343, 347, 355 capital 2, 62, 71, 77–8, 198, 285, 288, 293 credit 16, 130, 209, 255, 257–8, 273, 310 export 177 insurance 16, 31, 130 labour 3, 5, 15, 17, 27–48, 130, 131, 186–7, 191–2, 194–5, 197, 206, 210, 215–44, 250, 254–5, 266–70, 278, 283, 327, 330, 358 market distortions 2, 45 market failure 3, 94, 107, 125–6, 127, 128, 129, 209, 355 market forces 125 market functioning 30, 44 market instability market segmentation 9, 95, 341 marketing boards 119 Marshall Plan 55 ‘Marshall Plan for the South’ 55 ‘Matthew principle’ 261 Medium Term Expenditure Framework (MTEF) 69 MERCOSUR 57, 59, 61, 81 Mexico 215, 216, 221, 237, 239, 240, 242, 304, 321, 326 and infant mortality 326 and migration 304 and remittances 326 and tax collection 100 microenterprises 15, 28, 37–9, 215, 217, 218, 236, 242, 346, 348 employees 220 social insurance 220 microentrepreneurs 38–9 microfinance 5–6, 37–40, 142, 149, 346, 349 middle-income countries migrants’ remittances 19–20, 293–5, 297–8, 299–303, 304–12 migration 18–19, 56, 65, 129, 232, 292–312, 322, 324–5, 330–1, 334–9, 343, 344–6, 348, 349–50, 358–9 ‘optimists’ 18, 294, 301 ‘pessimists’ 18, 294 rural–urban 42 www.ebook3000.com 372 Index Millennium Development Goals (MDGs) 53, 74–5, 154 contracts 7, 53, 68, 74–5 mineral rents 4, 12–14, 21, 165–79, 183–210, 356, 357, 361 Moldova 299 Monetary Financial Institutions (MFIs) 346–7, 349 monetary policies 10, 41–2, 43, 46, 82, 124 see also individual countries money transfers 20, 320, 335 see also remittances Monterrey Conference on Financing and Development 57, 58 moral hazard 95, 240 Morocco 296, 304, 305 Mozambique 58 municipal bonds 76–7 Myanmar 58, 81 natural resources 12, 20, 58, 116, 118, 131, 133, 165, 174, 177, 183, 186, 195, 208, 355, 357 curse of 166–72 ‘diffuse’ 169 lootable 12, 170–1, 174 point source 12, 169–70 neoliberalism 106 neostructuralism 45 Nepal 97 Netherlands, the 55, 70, 193, 246, 256 new economics of labour migration (NELM) 296, 297 Nicaragua 216, 217, 226, 232, 321, 325 Nigeria 58, 62, 66, 80, 173, 176, 361 non-governmental organizations (NGOs) 38, 72, 355 Nordic Countries 117, 248, 249, 254, 255 North America 54, 265 North–South transfers 53–4 see also transfers Norway 12, 13–14, 55, 70, 82, 173, 183–212, 260, 280, 354, 357–8, 361 Official Development Assistance (ODA) 7, 53, 54–5, 60, 65–6, 71, 355, 356, 359 alternatives 71–3 conditionality of 68–9 drawbacks and possible solutions 66–8 fungibility of 70–1 grants 63 high transaction costs of 69–70 tied aid and 70 offshore tax havens 57, 77, 109 optimal tax theory 99 Organisation for Economic Co-operation and Development (OECD) 55–6, 80, 98, 108, 183–6, 192, 195, 199, 200, 203, 208, 269, 246 Development Assistance Committee (DAC) 58, 65, 99, 72, 80 Organization of Petroleum Exporting Countries (OPEC) 60, 73 Pakistan 296 Pan American Health Organization (PAHO) 234, 244 advice on health care coverage 234 Panama 216, 217, 218, 220, 223, 224, 225, 226, 227, 228, 229, 230, 231, 240, 322, 324 Paraguay 59, 81, 216, 217, 218, 219, 220, 221, 223, 224, 225, 226, 228, 229, 230, 322, 324 pensions 5, 15, 73, 108, 190, 191–2, 193, 194, 209, 215, 216, 218, 219–21, 231–2, 233, 234–5, 236, 237, 238–9, 240, 241, 243, 248–50, 252, 253–5, 256, 258, 259–60, 261, 271–2, 273–4, 276, 278, 279, 281, 282, 287, 302, 355, 358, 359 disability 192, 201–2 employment-related 248–52, 253–5, 257, 259, 260 occupational 256 social 128, 230, 286 universal 17 pension contributions 21, 253, 255, 256, 258 pension entitlements 192, 197, 219, 278 pension expenditures 183, 197, 201, 208, 210, 277 pension funds 4, 15–16, 18, 32–3, 34, 46, 237, 248, 250, 252–3, 256–7, 259, 260, 264–5, 271, 277, 281, 283–5, 286, 287–8, 319, 357, 358–9 remittances 18 social insurance 14–17 see also provident funds (PF) pension liabilities 284 pension reform 5, 6, 15, 16, 32, 45, 184, 210, 215, 243, 281 Finland 252–5 Latin America 32–5, 215, 243 Norway 184, 210 Index Thailand 281 pension reserves 272, 278 pension system 5, 16, 28, 30, 32–3, 46–7, 191, 192, 203, 206–7, 209, 222, 235, 238–9, 248, 254–5, 256, 259, 260, 265, 272, 275, 277, 279, 282, 354, 358 contributory 9, 14, 28, 35, 46, 223, 226–7, 230–2, 233, 234, 235, 237, 240–1, 276–7 funded 14–16, 33–4, 72, 215, 248, 249, 252, 255, 259, 260, 279 ‘pay-as-you-go’ 14–16, 33–4, 46, 194, 216, 249, 275 Perseon Terbatas Taspen (PT Taspen) 271–2 Peru 81, 96, 100, 109, 215, 216, 217, 218, 219, 221, 223, 224, 225, 226, 227, 229, 230, 231, 243, 322, 323, 324, 347 Petrocaribe 60 petroleum revenues 13, 183, 194, 195–6, 198, 201, 208 see also Norway Petrosur 60 Philippines 56, 81, 90, 97, 272 policy environments 1, 29, 43, 185, 233, 235, 252, 309, 335, 346, 359 political actors 172 political clientelism 37 political economy 4, 10, 13, 116, 119, 120, 126–7, 130–3, 176 political institutions 10, 13, 116–17, 124, 172, 173, 174, 177 political mechanisms see under political institutions political reform 308 population ageing 34, 184, 192, 197, 200 see also individual countries post-Washington consensus 5, 71, 355, 356, 360 poverty 6, 12, 15, 19, 20, 28–9, 32, 33, 44, 55, 67, 91, 110, 118, 125–6, 127, 130, 148–9, 152, 156–7, 165, 166, 218, 226, 227–8, 230–1, 232, 241–3, 247, 295, 296, 308, 310, 333, 336–7, 355 causes of 35–6, 38–9, 235, 265, 275 and inequality 301 reduction of 1, 3, 5, 6, 8, 10, 11, 19, 30, 33, 37, 43, 65–6, 67–8, 89, 99, 102–6, 107, 110, 122–3, 141, 149, 153, 154–5, 156–7, 159, 176, 233, 240, 265, 295, 319–20, 360 373 remittances 298–9 Poverty Action Funds (PAFs) 147, 155 poverty cycle 286 poverty gap 36 poverty lines 35, 95, 149, 166 Poverty Reduction and Growth Facility (PRGF) programmes 90, 121 poverty reduction programmes impact of 122–3 poverty reduction strategies (PRSs) 3, 10, 122 Poverty Reduction Strategy Papers (PRSPs) 66, 82, 106, 122, 143, 154–5, 157, 159 poverty traps 36, 126, 129–30, 133 pre-paid schemes 93–5 private flows 5, 18, 55–6, 319, 359 see also remittances privatization 1, 3, 15–16, 21, 28, 33, 64, 75, 81, 82, 174, 175 see also liberalization productivity Project Grand National 60 property 119, 280, 309 rights 13, 66, 117, 175, 208, 286 taxes 9, 91, 97 pro-poor policies 354 and taxation 89–93 pro-public expenditures (PPE) 142, 149 provident funds (PF) 17, 264–5, 271–2, 273–4, 276, 277, 279–80, 282, 284–5, 287 public debt 41, 46, 48 public expenditure 7, 40–1, 43–4, 89–90, 104, 107, 108, 109, 122, 126–7, 142, 149, 159, 161, 192 see also public spending public goods 10, 115, 118, 126, 128, 130, 142, 148, 158, 160 social services as 143–5 public institutions 28, 124, 128, 133, 189, 133 public–private partnerships 57, 355 public spending 10, 90, 116, 122–3, 125, 133, 142, 148, 150, 152–9, see also public expenditure redistribution 1–2, 3–4, 9–10, 14, 53–82, 94, 96, 119, 129–33, 358 global 6–7, 72 income 17, 53–82, 99, 102, 105, 133 regimes www.ebook3000.com 374 Index redistribution – continued social policies 8, 116, 125, 126–7, 128, 159, 360 regional integration 7, 53, 57, 59–60, 61 regulatory environment 17, 285, 359 remittances 18–20, 293–312, 319–50, 353, 355, 359, 361 and banking institutions 348 and economic growth 19, 308–9, 321–4 and education 329–33 and gender 305–6, 319 and government policy 343–5 and health 328–9 and human capital formation 306–7 and inequality 299–300, 303 and investment 300–2, 310, 326–7, 345–9 and nutrition 326–7 and poverty 19, 298–9, 319, 320, 336–7 and private flows 55–6, 319, 320–1, 322–4 and profits 62, 79 and social development 293–312, 319–50 as social protection 19, 293–7, 319, 320, 324–6, 333–6 dependency 311 Latin America 319–50 limitations and challenges 337–9 macro impacts 297 policy recommendations 345–7 recipients 19, 293–5, 296, 303–4, 309–10, 319, 339–43 securitizing 77–8 workers’ 293–5 remittance decay hypothesis 297–8 remittance flows 19–20, 21, 293, 296, 298, 319, 350 Renda Básica de Cidadania 6, 30, 42–4 rentier states 20, 172, 173, 180 rents 4, 8, 12–13, 168–9, 173, 195, 196, 208 see also mineral rents Republic of Korea 94, 131, 132, 260, 309 reserves 6, 53, 62–3, 65, 67, 72, 79, 81, 168, 279, 284 bank currency 5, 62–5, 71, 158, 173, 321 natural resources 174 pension 272, 278 petroleum 13, 196 resources 1–2, 3–4, 7, 8, 10, 14, 17, 20, 27, 31, 34, 45, 54, 60, 61, 65, 68–9, 73, 91, 97–8, 101, 104, 108, 115, 123, 125, 132, 155, 158, 167, 194, 198, 205–6, 222, 227, 235, 237, 240–1, 242, 259, 282, 284, 306, 329, 333, 343, 345, 348, 353 fiscal/financial 10, 15, 48, 120, 222, 226, 293, 310, 346, 354, 356, 359, 361 transfer of 57, 60, 62–3, 79 see also natural resources resource allocation 1, 32, 81, 98, 125, 147, 154–5, 179, 243, 354 ‘resource curse’ 4, 12–13, 20, 118, 165–6, 168–9, 171–4, 176–9, 184, 195, 208, 357 resource mobilization 1, 78, 108, 159, 354 resource-rich countries 12–13, 165–79, 183–210 revenues 2, 7–8, 10–11, 21, 71, 90, 91–2, 94, 95–102, 103, 105, 107, 115, 117, 120–1, 122, 131, 133, 149, 168, 174, 187, 201, 247, 255, 274, 286, 288, 297, 341, 344–5, 348, 353–4, 360 and social policy 3–5, 145–7, 149, 360 bonds 77 fiscal 70 fluctuations 14 petroleum 183, 194, 195–6, 198, 208 private 18 progressivity tax 7–9, 11, 20, 89–91, 96–102, 107, 116–17, 121–2, 145–6, 147, 159, 161, 187, 234, 344–5, 355, 356–7, 358 tourist 335 volatility 119–20, 127 revenue collection 6, 10, 53, 61, 79, 90, 344, 350, 361 revenue deficit 77 revenue generation 9, 90–1, 124, 343 ‘revenue sources’ 353, 356, 359, 360 risk pooling 130, 234 risk spreading 19, 296–8, 309 Roads Management Initiative 98 ‘Robin Hood principle’ 261 rural economy/sector 15, 16, 61, 104, 126, 127, 142, 155, 215, 226–7, 228–30, 242–3, 247, 283, 296, 301, 304, 323, 330, 334–5, 337, 346, 348, 354 rural unemployment 42 rural workers 217–18, 220–1, 222, 231–2, 236–7, 240, 242–3 Russian Federation 58, 174 Rwanda 117, 134 Index Sachs, Jeffrey 55 Salcaja Credit Union 347 sanitation 11, 104, 106, 142, 143–5, 147, 149, 152, 155, 156, 160, 161, 325 Saudi Arabia 58, 173 savings 6, 20, 34, 37, 38, 95, 117, 200, 208–9, 249–51, 259, 264, 265, 272–3, 280, 283–5, 287, 302, 304, 321, 335, 337, 339–40, 343, 345, 346, 347, 348, 350 global 7, 62 incentives 33 patterns private 15, 33, 231 see also individual countries savings gap 71 savings ratio 13, 131, 185, 208 Scandinavia 118, 184, 186–7, 189, 194 see also Denmark; Finland; Norway; Sweden sector-wide approaches (SWAps) 7, 53, 69, 70, 75–6 SEDI (Social Enterprise Development Indicators) 265 seignorage 119 self-employment/-employed 15, 37, 39, 215, 227, 241, 242, 244, 301 and social insurance 217–19, 220–2, 232–3, 236–8, 254, 255 self-provision 8, 91–2, 93, 106, 108, 355 Sen, Amartya 104 capabilities approach 295 Senegal 118 Singapore 56, 65, 81, 94 social assistance 4, 15, 17, 28, 31, 44, 104, 128, 230–1, 234, 239, 240–1, 243, 244, 272, 280, 283, 286, 288, 319, 358 see also individual countries social capital 172, 248, 255, 258–9 see under individual countries social change 177, 178, 179, 304 social cohesion 15, 46, 59, 176, 275 social consensus 173 social contract 2–3, 14, 108, 179, 194, 356, 358, 361 ‘social debt’ 59 social development 1–8, 12–13, 18, 19–20, 61, 63, 67, 76, 77, 79–80, 99, 101, 104–5, 107, 142, 159–60, 172–3, 178, 264–5, 281, 287, 355, 361 and remittances 293–312, 319–50 and the role of taxation 105–6 375 see also individual countries social exclusion 5, 29 social expenditure 2, 4, 28, 41, 82, 115, 133, 328, 355, 358, 360 see also individual countries social funds 15, 128, 272 social insurance 2, 4–5, 18, 27, 31, 35, 73, 94, 104, 127, 129, 130, 215–16, 224–6, 228, 229, 230, 244, 249, 264, 272, 274, 277, 297, 319, 320, 353, 255, 358 and labour market 217–22, 226, 228, 232, 236, 241–3 and pension funds 14–17, 215 coverage 216, 217–23, 226–7, 229, 230, 232–41, 358 financing of 47 lessons from Latin America 241–3 mandatory 32 social investment 2, 7, 60, 63, 67, 74, 79, 131, 345 social liberalism 28, 29 social mobility 32, 45, 126, 129, 354 social policy 1, 7–10, 28, 37, 47, 56, 59, 67, 89, 98, 99, 102–6, 108, 125, 132, 142, 154, 166, 184, 186–95, 247–9, 255, 258, 260, 265, 319, 355, 357 developmental impact of 2–3, 360 financing of 1–2, 6, 53, 73–9, 92–3, 115, 130, 353–4 in low-income countries 125–30 institutions 45 positive effects of 123 revenues 3–5, 18, 178–9, 357–61 social programmes 1, 9, 10, 29, 319 social protection 5–6, 13, 15, 18, 19, 21, 30–2, 43, 44–5, 115, 133, 159, 179, 233, 236, 243, 310 informal 116, 129–30 remittances 319, 324–6 safety nets 31, 67, 68, 115, 128, 179 schemes 3, 125–8, 355 times of economic downturn/poverty 333–7 transfers 195 social protection systems (SPS) 6, 27–8, 39, 44, 45, 47, 127–8, 355 social risk 27, 30–1, 247, 274, 277 social risk management 5, 6, 30, 233–4, 355 limitations and potential 30–2 see also risk pooling www.ebook3000.com 376 Index social security 6, 16, 17, 28, 34, 36, 73, 91, 98, 99, 107–8, 117, 119, 128, 129, 184, 190–5, 210, 232, 234, 236, 240, 243, 249, 260, 264, 269–72, 277, 282–3, 311–12, 358 see also social insurance social services 4, 8–11, 29, 42, 128, 146, 149, 153, 159–60 aid and 153–6 as public goods 143–5 financing of 8, pro-poor 4, 8, 89–110 efficiency of provision of 10–11, 42, 89–110, 141–2, 158 targeting of social spending 10–11, 20, 59, 71, 90, 117, 125–6, 128, 130, 141, 142–3, 156–7, 320, 343–4, 356–7 aid and efficacy of 148–53 aid and level of 145–8 ‘social wage’ 27–8, 45 Somalia 297 South Africa 58, 62, 75, 82, 117, 122, 127, 306 mining communities 301 South Asia 94, 104 South–North transfers 6, 53, 79 avoidance of 61–4 Southern African Development Community (SADC) 57, 59 Spain 60, 62, 82, 256, 307, 309 and Moroccan immigration 307 Special Purpose Vehicles (SPV) 77 Sri Lanka 17, 264, 266, 267, 268, 269, 270, 282, 283, 284, 285, 286, 287 pension and provident funds 275–7 stabilization policies 2, 3, 42, 89, 116, 119–20, 121–2, 173–4, 309 state 1–2, 4, 9–10, 19, 20, 30, 33, 40–1, 57, 82, 130, 133, 168, 177, 195, 202, 208, 209, 216, 219, 233, 241, 247, 250, 251, 252, 254, 255–7, 259, 265, 271, 280, 308, 309, 310, 311, 320, 344, 354, 355, 356–7, 359 developmental 10, 14, 115, 118–19, 120, 124, 126, 130–3, 252 resource-rich 13, 120, 171, 173–5 role in the economy 6, 33, 40–1, 42, 61, 67, 93, 98, 125–6, 128, 169, 235, 287 see also welfare state state building 16, 115, 120, 126, 247 state–citizen relationship 7, 92, 117, 118–19, 124 state–market relationship 5, 282 state-owned enterprises (SOEs) 61, 82, 98, 280 stratification ethnic/social 300 structural adjustment programme (SAP) 101, 106 structural reforms 28, 47, 215, 222, 231, 232 structuralism 45, 107 structuralist theories 293, 299–300, 311 sub-Saharan Africa 9, 58, 62–3, 90, 91, 100, 104, 115, 117–24, 126, 129–33, 148, 158, 166, 168 Sudan 58, 80 Surinam 297, 322, 324 sustainability 1, 3, 8, 9–10, 12, 14, 15, 17, 37, 38, 39, 46, 55, 67, 101, 124, 142, 159, 184, 195, 196, 199, 202–3, 206, 209, 234, 242, 265, 278, 282, 309, 310, 311, 353, 354, 357, 358, 361 Sweden 55, 117, 246, 247, 260 Taiwan 309 Tanzania 93 targeting 6, 9, 44 94, 128, 159, 222, 233, 239–40, 242–3 tax 2–3, 21, 40–1, 47, 91–3, 107, 121, 132–3, 147, 159–60, 173, 186–7, 192, 194–5, 200–3, 219, 226, 231, 236, 239, 275, 280, 288 arms trade 56 commodity-based currency flows (‘Tobin tax’) 56 direct 8, 9, 46, 91, 99–100 earmarked 8, 9, 91, 97–9 environmental 7, 56 excise 96 income 42–3, 44, 91, 99, 100, 119, 133, 194, 279 indirect 8, 9, 91, 96, 100, 122, 210 luxury 7, 56 payroll 14, 32, 194, 198–200, 210 regressive sales 20, 107 time-burden 92, 93 trade 10, 90, 91, 96, 100, 101–2, 106, 107, 119–20, 121, 122, 356 Value Added Tax (VAT) 9, 64, 95, 96, 119, 122 tax administration 99 Index tax avoidance 91 tax breaks 346, 348 tax collection 20, 48, 91, 100, 123, 345 tax competition 2, 57 tax compliance 99 tax evasion 57, 91, 100 tax exemptions tax havens 57, 77 tax law 99 tax policies 122, 356 tax ratio 117, 127, 131 tax regimes 2, 9–10, 14, 101, 161, 354 tax reform 8, 44, 46, 90, 99, 101, 160, 356 tax revenues 9, 11, 18, 20, 89, 91, 99, 100, 102–5, 121, 131, 145–6, 159, 187, 234, 344, 345, 355, 357 tax smoothing 105, 205, 206 taxation 4, 18, 20, 63, 70, 71, 81, 89–91, 115, 116–17, 118–19, 128, 130–1, 132, 183–4, 240–1, 247, 250, 285, 344, 356–7, 358 and aid 7–11, 355–6 general 77 role of 105–6 taxation mechanisms taxation systems 4, 7–8, 14, 46, 57, 65, 72, 99, 115, 116, 120–4, 125, 133, 160, 174, 250, 260, 356, 361 taxation traps 10, 118, 126, 133 technical assistance 7, 75, 80, 273, 346, 348 technological change 103 Thailand 17, 56, 81, 94, 264, 266, 267, 268, 269, 270, 282, 283, 284, 287 pension and provident funds 277–81 time-burden tax 91, 92, 93, 103, 105 ‘Tobin tax’ 56 Tonga 299 total fertility rate (TFR) 269 trade 3, 56, 59, 60, 106, 115, 118, 176, 186, 196, 202, 209, 237, 307 revenues 10, 119–20, 122 trade deficits 158, 297 trade liberalization 9, 10, 81, 107, 115, 117, 120–2, 133 consequences of 120–2 free trade agreements 66–7 trade reforms 133 trade taxes 9, 10, 90, 91, 96, 100, 101, 107, 116, 119–20, 133 trade unions 16, 237, 252, 253–4, 259 377 trading strategies 59 transfers 6–7, 35, 56–8, 61–4, 68, 72–3, 104–5, 115, 128–9, 131, 158, 175, 187, 190, 194–5, 197, 210, 241, 261, 265, 309 cash 128, 187, 201, 209, 320, 355, 359 fiscal 227, 231, 240, 244 income 43, 45–6 intraregional 59–60 knowledge 294 remittance 296, 319, 322, 335–6, 337, 343, 346–8 social 2, 115 North–South 53–7, 79 South–South 7, 53, 57–61, 73 South–North 6, 53, 79 avoidance of 61–5 wage-indexed 206 transfer costs 335 transfer prices 101 transfer programmes 128, 354 transnational ties 295, 297, 298, 302, 304, 307, 320, 325, 346, 350 transparency 8, 9, 61, 98, 205, 206, 274, 288 and policy making 74 bureaucratic 308 initiative 17 lack of 60 levels of 173–4 money 20 political 208 TRIPS (Trade-Related Aspects of Intellectual Property Rights) 66, 82 Trudeau, Pierre 55 tuberculosis 57 Turkey 58, 75, 77, 296–7, 305, 309 Turkmenistan 174 Uganda 103, 154, 155 UK Department for International Development (DfID) 178 underdevelopment 165, 171, 226, 350, 359 unemployment 2, 3, 6, 15, 21, 29, 32, 35–6, 40–2, 44, 47–8, 103, 129, 186, 190–4, 196, 205, 222, 226–8, 238, 243, 249, 277, 307, 308, 336, 355 unemployment trap 36 UNDESA 62 United Kingdom 62, 70, 82, 165, 246, 256, 260, 272 Child Trust Fund (CTF) 265 www.ebook3000.com 378 Index United Nations 55, 65, 70, 72, 80, 107, 170 see also individual agencies United Nations Children’s Fund (UNICEF) 93, 108 United Nations Conference on Trade and Development (UNCTAD) 118, 120, 166 United Nations Economic Commission for Africa (ECA) 93 United Nations Economic and Social Council (ECOSOC) 72 United Nations General Assembly (GA) 55, 57, 67 United Nations Research Institute for Social Development (UNRISD) 1, 3, 4, 82, 133, 161, 243, 354, 357, 360 United States 7, 41, 48, 55, 57, 62–6, 77, 94, 97, 101, 108, 117, 125, 165, 184, 187, 189, 191, 201, 246, 260, 265, 307, 320, 322, 325, 335 and Ecuadorian migrants 304 United States Agency for International Development (USAID) 37 United States–Guatemala Chamber of Commerce 335 universality 6, 8, 14, 17, 20, 27, 28, 31, 34–5, 43–4, 46, 67–8, 98–9, 108, 115, 125, 128–9, 133, 145, 157, 216, 222, 226, 228, 232–4, 235, 240, 243, 244, 247, 249–51, 252–3, 258, 295, 353, 354, 355, 360 urban–rural inequality 229 Uruguay 28, 91, 215, 216, 217, 218, 219, 220, 223, 224, 225, 226, 228, 229, 230, 231, 232, 239, 244, 322, 324 user charge system 93–4, 98, 108 user fees 8–9, 91, 92, 93–5, 106, 107, 108, 229 Uzbekistan 58, 174 Venezuela 7, 28, 60–1, 81, 173, 216, 217, 218, 223, 224, 225, 226, 230, 231, 237, 240, 322, 324 volatility 3, 70, 116, 133 aid flows 70, 123–4 commodity prices 118 economic 5–6, 31 economic growth 31, 59 revenue generation 9, 119–20 state revenues 356 wages 27–8, 29, 32, 41–2, 97, 101, 103, 104, 122, 131, 154, 158, 194, 196, 197, 198, 199, 201, 202–3, 206, 207, 210, 219, 250, 252, 254, 260, 271, 273, 274, 278, 283, 285, 299, 301, 303, 307, 338, 355, 356, 358 earned 27 fixed 41 growth of 192, 195–6, 199, 201, 202, 206, 207 minimum 239, 240 ‘social wage’ 27–8, 45 wage earners 27, 39, 45, 48, 158, 220 wage indexation 201, 209, 272 wage levels 191–2 ‘Wagner law’ 117 Washington consensus 3, 5, 28, 44, 45, 67, 82, 89, 90, 103 see also post-Washington consensus wealth 13, 33, 34, 72, 93, 99, 100, 108, 110, 131, 186, 198, 204, 228–9, 242, 296, 299–300, 301, 306, 337, 341 accumulation 132 distribution 29, 79 foreign 198–9 global disparities 6, 53–4 natural resource 12, 14, 165–72, 174–5, 179, 357 petroleum 183–4, 195–6, 200, 203–6, 208–9, 357 taxes 91 wealth generation 341 welfare 1, 29, 30, 31, 35, 45, 53, 63, 89, 131, 141, 149, 150–3, 156–7, 200, 205, 265, 296, 297, 298, 309, 310, 312, 337, 355, 356, 359 indicators 141, 142, 147, 153 non-monetary indicators 11, 149 see also welfare regimes; welfare state welfare outcomes 11, 143, 148 welfare regimes 2, 3, 195 welfare state 27, 93, 117, 131, 178, 184, 247, 354 credibility of 126 European 27 Finnish 16, 260 Keynesian model Latin American 14 liberal market model Nordic model 249 Norwegian 186–95, 197–201, 203, 210 retrenchment 28, 45 see also individual countries welfare schemes/systems 15, 183, 186–9, 194, 197–9, 203, 282, 354 Index Wells Fargo & Company 335 Western Europe 14, 27, 93, 184 women 28, 93, 101, 105, 179, 186, 201, 226, 228, 238–9, 242–3, 325–9, 331–2 access to education 131 consumption needs 93 in the labour force 168, 194, 229–30 migrants 305–6 status of 12, 18, 103–4, 165, 168 time-burden tax on 103 workers 29–32, 33–5, 40, 42, 48, 81, 209, 217, 219–21, 224, 226, 228, 229, 235, 241, 244, 272, 274, 277, 280, 306–7 elderly 253 family 217–18 informal 42, 119, 217–18, 232, 235, 236, 237, 283 overseas 78 private sector 271 productivity 28, 101 public sector 254, 279 379 rural 15, 221–2, 232, 236–7, 242, 338 self-employed 37, 217 temporary 6, 32 see also remittances; social insurance workfare programmes 5, 6, 30, 35–7, 42, 43, 44, 358 World Bank 5, 6, 29, 30–1, 32–3, 34, 35, 36, 47, 48, 58, 60, 61, 68, 70, 72, 73, 79, 80, 81, 93, 95, 98, 119, 122, 155, 166, 222, 231–2, 233–4, World Development Indicators 117 World Development Report 93–4 World Health Organization 108 World Summit for Social Development World Trade Organization (WTO) 90, 120 Yemen 305 Zimbabwe www.ebook3000.com 58 ... (International Association of Latin American Pension Fund Supervisors) ALBA Bolivarian Alternative for Latin America APPFs Approved Private Provident Funds (Sri Lanka) Asabri Asuransi Angkatan... rate IOM International Organization for Migration ISSA International Social Security Association ITO International Tax Organization Jamsostek Jaminam Sosial Tenaga Kerja (Private Sector Social Security... Introduction and Overview Katja Hujo and Shea McClanahan Part I Global Dimension: Paradigms and Resources Social Exclusion Policies and Labour Markets in Latin America Rubén M Lo Vuolo Financing for Development: