Social spending in Latin America

The following figure shows a comparison of social spending per capita among countries of Latin America. Chile and Mexico are the countries with the best performance, during the analysis period almost doubled the expenditure allocated to social category. The graph was taken from the book "Social Policy inMexico. Recent achievements and remaining challenges" published by the Economic Culture Fund and SEDESOL.

One dollar a month and poverty in Brazil

The government is giving families an extra one dollar a month as a complement in the conditional cash transfer program Bolsa Familia. The family allowance is intended to reduce the number of families in extreme poverty. Read the note here. By the way the literature on poverty under one dollar a day has been summarized in the -very successful book- Poor Economics.

Discussions in Chile to improve the pension system

Read the complete note here

Increases 50% middle class in LAC: World Bank

A new World Bank report "Economic Mobility and the Riseof the Latin American Middle Class" found that in Latin America and the Caribbean the middle class grew by 50% in the last decade, which is considered an historic achievement for the region . The report said that the middle class in the region grew to an estimated 152 million in 2009, compared to 103 million in 2003. More information here.

New social support program in Brazil

The president of Brazil announced the launch of a new social program in Brazil: "Tenderness Brazil (Brazil Carinhoso)". The program aims to overcome the problem of extrem poverty among families with children under 6 years old. Complements the CCT program "Bolsa Familia" offering childcare, additional health services and free medicines.
 

 

Discussion to reform Uruguay´s pension system

During these weeks there are several discussion to reform the pension system in Uruguay. You can read the note here

"Health Savings Accounts in Brazil"

The financing of healthcare for pensioners, and elderly in general, is an unsolved topic. In Brazil there are discussion for the implementation of Health Savings Accounts. HSA will allow workers to contribute during their active live to an account (similar to an Individual Retirement Account), and at retirement withdraw the money to complement the healthcare provided by the State. Read the note here (in Portuguese).

Have the labor markets recovered in the decade in the countries of the continent?

Have the labor markets recovered in the decade in the countries of the continent? The following figures compare the level of employment when the economy had its peak before the crises. This allows quantifying “gaps” in employment, i.e., the difference between the observed level and the “potential” (in reference to the peak) level of employment. We can observe three patterns (all in relation to earliest peak):

i) In Canada, Colombia, Mexico and the United States there is an employment gap by 2012.

ii) In Brazil, Chile, Costa Rica, Ecuador, Peru and Uruguay there is not an employment gap, i.e. the level of employment is similar to the potential employment.

ii) In Argentina, Panama and Venezuela current employment is higher than potential employment

Figure

Employment and Potential Employment across the Business Cycle, 2000-2010

Note: Employment calculated using working age population 15+.

Source: Own calculations using International Labour Organization (ILO), LABORSTA

For more information, The Americas Social Security Report 2013 will soon be available on the website of the CISS.

In Chile the adult population has doubled since 1990

Casen Survey Data in Chile reveal that the elderly population has doubled since 1990. There are currently 2,638,000 older adults. More information here.

Study reveals low replacement rates in "solidarity pillar" of Chile

According to a study commissioned by the AFP to the Department of Scientific and Technological Research (Dictuc) of the Catholic University in Chile replacement rates were 88% in the case of men and 64% for women for the 26,002 affiliates who retired in the first quarter of 2011. However, when replacement rates for the contribution of so-called solidarity pillar for the poorest 40% of the population where calculated, they reported that these drop to 72% for men and 37% for women. More information here.

In Argentina 30% of households do not have enough income to meet their needs

In three out of ten households in Argentina, the income received by its members are insufficient to meet their needs and maintain a certain quality of life. More information here.

The "brick" and Chilean pension reform

The reform to the pension system in Chile has been one of the more researched events in social security. For those interested in history, the "brick" is a main reference. This is a document drafted by a group of Chilean economists during the early seventies. There, the main ideas for reform are outlined (see part G in chapter 2). We notice that in the opinion of this seminal authors, they were devolving the system to its principles.

Generous pensions can cause economic slowdown in Brazil

Generous pensions received by civil servants (or their families) in Brazil can be one of the causes of the economic slowdown in that country. Congress passed a bill that limits the pensions of public officials. More information here.

Brazil: Unemployment rate in January the lowest in 10 years

According to the Brazilian Institute of Geography and Statistics (IBGE), the Brazilian unemployment rate in January was 5.5%, the lowest in 10 years. More information here.

CISS Health Systems and Insurance Report: 2006-2010 Health Reforms in the Americas

The "CISS Health Systems and Insurance Report: 2006-2010 Health Reforms in the Americas" is already available in the Social Science Research Network (SSRN) : http://papers.ssrn.com/sol3/papers . cfm? abstract_id = 1810010

ILO: urban unemployment declined in LAC

In recent days the ILO presented its Labour Overview report showing a decline in urban unemployment in Latin America and the Caribbean, reaching a historic low of 6.8%. The Agency warns of the need to improve job quality. See press release here.

The deficit of the pension system in Brazil has been reduced

In 2011 the deficit of the pension system in Brazil declined, thus registering his best result since 2002. More information here and here.

Paraguay have plans to include social security to homemakers and domestic workers

The Social Security Institute (IPS) of Paraguay presented to Congress the draft law to housewives and domestic workers may receive retirement. More information here and here.

ECLAC perspectives for 2012

Yesterday we talk about IMF expectations for Latin America in 2012. Today we present the ECLAC perspectives. According to the Organization, Latin America and the Caribbean will grow by 3.7% in 2012 amid global uncertainty and volatility.

IMF expectations for Latin America in 2012

The International Monetary Fund does not forecast a recession for the countries of Latin America in 2012, but forecast weak growth in the region due to the confidence and commodity prices have been falling. To view the complete note of IMF expectations click here.