By The World Bank
Following the intense fiscal obstacle in 2001 02, Argentina mobilized an exceptional attempt to supply source of revenue aid to the section of the inhabitants so much in want. Now, as development has back and social signs recovered to precrisis degrees, there's a gap to maneuver from emergency help courses to a extra complete, long term, and sustainable procedure for social safety. The problem is to layout and completely enforce a social defense method that has enough insurance and advantages and is built-in and fiscally and politically sustainable. The research contained during this publication aimed to give a contribution to and tell the controversy concerning the way forward for source of revenue aid regulations in Argentina, taking the perspectives, values, and personal tastes of the stakeholders and the inhabitants as beginning issues. The examine incorporated leading edge efforts to gather and comprehend the panorama of principles concerning ideas for social safeguard circulating in Argentina: first, an in depth set of consultations with coverage makers and practitioners in social coverage, almost always on the provincial point; and moment, a countrywide, consultant opinion survey at the perspectives and perceptions of the inhabitants concerning social coverage and source of revenue help courses particularly.
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Additional resources for Argentina: Income Support Policies Toward the Bicentennial (World Bank Country Study)
Emergency Response and Current Income Support Policy When Argentina was hit by one of the deepest crises in its history in 2002, apart from the fall in GDP, the social consequences were quite severe. Unemployment, poverty, and inequality reached all-time highs. Informality continued its two-decades-long increasing trend. Banking and political crises accompanied the process that ended in the biggest default of sovereign debt in history. In this context, a new income transfer program, Plan Jefes y Jefas, was launched and reached 2 million households, amounting to nearly 25 percent of the population.
This level was almost 10 percentage points higher for the first quintile of the per capita income distribution. During this decade, only 3 percent of households received more than one benefit from the programs. The introduction of Plan Jefes reversed the growth of the coverage gap in 2003, as it succeeded in reaching the bottom of the income distribution. In 2001, 60 percent of households in the first quintile of the distribution did not receive income support programs. The massive expansion of Jefes reduced this gap to 40 percent two years later.
Originally divided into three groups (private, public, and training), some of the federal programs received external financing from the Inter-American Development Bank (that is, Proyecto Joven). Plan Trabajar is one of the ALMPs that outlived the initial group of programs and was later financed by the World Bank. The impact of this program was evaluated several times between 1999 and 2001. The repeated conclusion was that the program was welfare enhancing, given that the forgone income of the beneficiaries was lower than what they actually received from participating (Ravallion, Galasso, and Salvia 2001; Jalan and Ravallion 1999; Ravallion et al.