Argentina: income support policies toward the bicentennial

Following the serious economic crisis in 2001-02, Argentina mobilized an unprecedented effort to provide income support to the segment of the population most in need. Now, as growth has returned and social indicators recovered to precrisis levels, there is an opening to move from emergency support programs to a more comprehensive, long-term, and sustainable strategy for social protection. The challenge is to design and fully implement a social protection system that has adequate coverage and benefits and is integrated and fiscally and politically sustainable.The analysis contained in this book aimed to contribute to and inform the debate about the future of income support policies in Argentina, taking the views, values, and preferences of the stakeholders and the population as starting points. The research included two innovative efforts to collect and understand the landscape of ideas regarding options for social protection circulating in Argentina: first, an extensive set of consultations with policy makers and practitioners in social policy, mainly at the provincial level; and second, a national, representative opinion survey on the views and perceptions of the population regarding social policy and income support programs in particular.

Argentina approaches its bicentennial as an independent republic and has a window of opportunity in social protection policy. Following the most serious economic crisis in its history during 2001-02, the country mobilized an effort to provide income support to the population in need. Now, as growth has returned and social indicators have recovered to pre-crisis levels, there is an opening to move from emergency income support programs to a more comprehensive, long-term, and sustainable strategy for social protection. The emergency response was effective, as it helped the country to overcome the worst of the crisis. The centerpiece of the strategy, plan Jefes y Jefas, provided benefits to nearly two million households during a period when poverty affected more than half the population and unemployment reached record levels. The number of beneficiaries slowly declined beginning in 2003, and was at nearly one-third of its maximum value by early 2008. This reduction was achieved by the reentry of beneficiaries into the formal labor market, the loss of eligibility, and the shift of beneficiaries to familias and seguro de capacitacion y empleo (Seguro), the successor programs to Jefes. Now that the crisis has passed, the policy debate has shifted toward the future of social protection over the longer term. The improvement in overall economic conditions since 2003 has resulted in a decline in unemployment, poverty, and inequality, and a recovery of formal employment and real salaries to pre-crisis levels. These positive trends have generated opportunities to consider longer-term and structural issues, including a debate over the future of whether this new type of noncontributory social policies, based on income transfers to households and individuals, should continue.--Publisher's description