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SOCIAL PANORAMA 2010
GOOD NEWS
BAD NEWS
• Despite the severe global
crisis, social variables in
the countries of the region
have shown a resilience
not seen in previous crises
• The region faces the great
challenge of ending the
production and
reproduction of inequality
throughout the life cycle
• This is witnessed by recent
trends in the poverty rate,
income distribution and
social spending
• The region has not
overcome gaps in
development opportunities
during childhood and youth
GAPS HAVE TO BE CLOSED IN EDUCATION CYCLES, WHICH ARE
DETERMINED LARGELY BY HOUSEHOLDS’ EDUCATIONAL CLIMATE
AND SOCIO-ECONOMIC STATUS
I. RECENT TRENDS IN
POVERTY AND INCOME
DISTRIBUTION
The region has learned the lesson of the social costs of the
crisis: poverty and indigence rose less than expected in 2009
and are projected to fall in 2010 as the economies recover
LATIN AMERICA: POVERTY AND INDIGENCE, 1980 – 2010 a
Percentage of the population
Millions of persons
Source: Economic Commission for Latin America and the Caribbean (ECL:AC), on the basis of special tabulations of household surveys conducted
in the respective countries.
a Estimate for 18 countries of the region, plus Haiti. The figures above the bars are the percentage and total number of poor persons (indigent plus
non-indigent poor).
The deterioration in poverty indicators in 2009 did not
wipe out the substantial gains of the past six years
LATIN AMERICA (18 COUNTRIES): POVERTY AND INDIGENCE RATES, AROUND 2002 AND 2009
(Percentage points)
Source: Economic Commission for Latin America and the Caribbean (ECL:AC), on the basis of special tabulations of household surveys conducted in the respective countries..
a Urban areas.
b Figures from the Mission to Reduce Poverty and Inequality (MERPD), the National Administrative Department of Statistics (DANE) and the National Planning Department (DNP) of
Colombia.
c Figures from the National Institute of Statistics and Informatics (INEI) of Peru.
The two major pillars for the reduction of
inequality are: employment and social policies
LATIN AMERICA (12 COUNTRIES): ANNUAL VARIATION OF THE COMPONENTS OF THE PER CAPITA
LABOUR INCOME IN POOR HOUSEHOLDS, 2008-2009 a
(Percentages)
The countries have adopted a variety of counter-ciclical
policies in the areas of labour and social affairs to soften
the impact of the crisis
LATIN AMERICA AND THE CARIBBEAN: COMPOSITION OF THE PORTFOLIO OF SOCIAL
PROGRAMMES ANNOUNCED BETWEEN THE OUTBREAK OF THE CRISIS AND 31 DECEMBER 2009
(Percentages of all measures)
100%
4.8%
20.0%
90%
16.1%
19.0%
80%
12.9%
Consumption subsidies
12.0%
70%
23.8%
60%
12.0%
16.1%
Efforts to combat
unemployment
Wage rises
6.5%
50%
Employment creation
20.0%
19.0%
40%
Support for poor families
29.0%
Social security
30%
20.0%
20%
28.6%
10%
16.0%
19.4%
4.8%
0%
South America
Mexico and Central America
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official information.
The Caribbean
Social public spending has been procyclical,
but turned countercylical during the crisis
LATIN AMERICA AND THE CARIBBEAN (21 COUNTRIES): ANNUAL VARIATION IN SOCIAL PUBLIC
SPENDING, TOTAL PUBLIC SPENDING AND GDP a
(Percentage variation)
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of social spending data.
a Regional aggregates. Spending figures for 2009 are estimates based on information for seven countries.
Social public spending in Latin America has risen
in relation to both total public spending and GDP
LATIN AMERICA (21 COUNTRIES): TOTAL PUBLIC SPENDING AND SOCIAL PUBLIC SPENDING AS A
PROPORTION OF REGIONAL GDP, WEIGHTED AVERAGE
(Percentages)
30
28.5 70
28.0
25.9
60
58.9
18.4
15
12.3
50
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of social spending data.
2008
2007
2006
2005
2004
2003
2002
2001
1997
1996
1995
1994
1993
1992
1991
0
1990
43.8
2000
Total public spending as a percentage of GDP
Social public spending as a percentage of GDP
Ratio of social spending to total spending
5
1999
10
55
15.3
1998
Percentage of GDP
20
65
45
40
Percentage of total public spending
64.7
25
The crisis did not put a stop to inequality reduction
efforts, which have been yielding fruit in Latin
America since 2002
LATIN AMERICA (18 COUNTRIES): GINI COEFFICIENT OF INCOME DISTRIBUTION, 2002–2009 a
0.70
0.65
0.60
0.55
0.50
2002
Guatemala
Honduras
Colombia
Brazil
Dominican Rep.
Bolivia
(Pl. State)
Nicaragua
Chile
Panama
Mexico
Paraguay
Argentina b/
Costa Rica
Ecuador b/
El Salvador
Peru
Uruguay b/
0.40
Venezuela
(Bol. Rep)
0.45
Most recent year
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of special tabulations of household surveys conducted in the respective
countries.
a The survey year varied between countries. The period 2002 corresponds to the most recent survey year available between 2000 and 2002, and the period 2009 to
surveys available between 2006 and 2009.
b Urban areas.
A multidimensional measurement based on unmet basic
needs shows that the population with serious deprivations
decreased significantly between 2002 and 2009
2000
Chile
Uruguay b/
Costa Rica
Ecuador b/
Argentina b/
Venezuela
(Bol. Rep.)
Dominican Rep.
México
Brazil
Colombia
Paraguay
El Salvador
Peru
Bolivia
(Plur. State of)
Honduras
Guatemala
70%
60%
50%
40%
30%
20%
10%
0%
Nicaragua
LATIN AMERICA (17 COUNTRIES): INCIDENCE OF UNMET BASIC NEEDS, 2002 – 2009 a
Most recent year
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of special tabulations of household surveys conducted in the respective
countries.
a The survey year varied between countries. The period 2002 corresponds to the most recent survey year available between 2000 and 2002, and the period 2009 to
surveys available between 2006 and 2009.
b Urban areas.
In sum: in the period from 2002 to the
most recent estimate
There is a general trend towards the
reduction of poverty and extreme poverty
And increase of income in the poorer
households
A better income distribution
Explicit will and capacity of the countries
to mitigate the social costs of the crisis and
advance towards more integrated social
policies
II. EDUCATION:
THE KEY TO ENDING OR
REPRODUCING EXCLUSION
AND INEQUALITY
Education and equality:
an equation still in the making
1. Education is the key stage and life cycle
marker addressed in this edition of
Social Panorama
2. Education is the main tool for decoupling
life trajectories from gaps at origin.
3. New generations have joined the
education system, but outcome and
learning gaps by household socioeconomic level persist.
One of the harshest faces of inequality in educational
achievement is the contrast in secondary completion
rates by socio-economic level
LATIN AMERICA (18 COUNTRIES): COMPLETION OF UPPER SECONDARY EDUCATION AMONG YOUNG
PEOPLE AGED 20 – 24, BY PER CAPITA INCOME AND SEX, AROUND 2008 a
(Percentages)
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of special tabulations of household surveys conducted in the respectiv
countries.
a The figures on indigenous and non-indigenous young people refer to eight countries and corresponds to 2007.
Supply-side segmentation in education is
reflected in unequal learning and educational
outcomes
LATIN AMERICA (6 COUNTRIES) AND OECD: DISTRIBUTION OF PERFORMANCE IN PISA SCIENCE TEST
BY PUPILS AGED 15 YEARS, BY ECONOMIC, SOCIAL AND CULTURAL STATUS OF THEIR FAMILIES, 2006
(Percentages)
Source: Economic Commission nor Latin America and the Caribbean (ECLAC), on the basis of special tabulations of microdata from the PISA 2006 survey.
Note: The distribution of performance levels in Latin America and in OECD refers to the simple average of average weighted national achievement levels of the countries participating in the Programme for International Student Assessment (PISA) 2006 (Argentina, Brazil, Chile, Colombia, Mexico and Uruguay).
The link between education and employment
reproduces and can even widen social inequities
LATIN AMERICA (18 COUNTRIES): MONTHLY LABOUR INCOME FOR THE EMPLOYED POPULATION AGED
15-29, 30-64, AND 15 AND OVER, BY LEVEL OF EDUCATION
(Percentages and 2000 purchasing power parity dollars)
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of special tabulations of household data in the
respective countries.
Social investment in education has risen
significantly, but shows distributive biases
1.
Education is the sector that allocates the greatest resources to
children and young people.
2.
Most of the countries increased spending per student between
2000 and 2008. In the last decade, countries focused on
increasing coverage, which rose by 14 percentage points
between 1990 and 2000, but has risen by only 5 percentage
points since.
3.
The increase in public spending per student in the region
largely reflects economic growth and efforts to afford greater
importance to education within national budgets.
4.
The expansion of education has helped to make spending more
progressive, especially in preschool, primary and lower
secondary education. But, given more limited entry to higher
education, spending at this level is not yet as progressive as
might be wished.
Public spending is progressive in preschool, primary and lower secondary education;
access for lower-income students to upper secondary and tertiary education must
now be broadened to make public spending more progressive at those levels
LATIN AMERICA (15 COUNTRIES): DISTRIBUTION OF PUBLIC SPENDING ON EDUCATION AND
COMPARISON WITH PER CAPITA INCOME, AROUND 2008, WEIGHTED AVERAGE
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of special tabulations of household surveys conducted in the respective countries.
a/ Simple averages.
Main ideas
1. Deactivating the intergenerational reproduction of
inequality is not a task for the education system alone, but
for the entire institutional structure, in which the family is a
key actor and territorial segregation a key driver.
2. Household traits, such as their socio-economic, ethnic and
territorial status and the educational level of the heads of
household, are markers of intergenerational transmission
of education inequalities
3. Education is not only segmented on the supply side;
spending by those paying for private education also
segments quality.
4. Convergence through digital-skills-building will be crucial
for deactivating the intergenerational reproduction of
inequalities.
Major challenges and instruments for combating
inequalities of origin and at different stages of
the life cycle
• Education policy must be linked with other social
protection and development efforts
• Key factors for action in the field of education:
•
Extend coverage of early and preschool education
•
Extend the school day in public primary primary education
•
Mainstream ICT in public education
•
Improve progression and completion rates of young people
from lower-income homes with poor educational climates
•
Enhance the quality of public education and close the quality
gap with respect to private education
•
Coordinate education with training for employment
•
Seek ways to make quality compatible with the expansion of
tertiary education
Governments in Latin America play a limited role in
financing consumption by children and young
people
SOURCES OF FINANCING FOR CONSUMPTION BY CHILDREN AND YOUNG PEOPLE, AROUND
2000
(Percentages of total consumption)
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of information from the project on intergenerational
transfers, population aging and social protection in Latin America of the Latin American and Caribbean Population Centre (CELADE) – Population
Division of ECLAC, and the International Development Research Centre (IDRC) [online] http://www.ntaccounts.org.
Public policy reflections
•
The region has learned the lesson of the social costs of crises and
the importance of softening their impact by means of countercyclical
policies.
•
The life cycle approach is important in identifying the links that must
be deactivated to prevent the intergenerational reproduction of
inequality.
•
Public policies on education, in combination with other social
policies, are very important for breaking the vicious cycle of
inequality reproduction.
•
It is crucial that young people complete upper secondary education,
which is a threshold for social inclusion that helps to deactivate the
mechanism of inequality reproduction.
•
Social spending on education is very important at each stage of the
cycle, as is investment in capacity-building.
•
The transfers system, meanwhile, should be used to offset lacks in
other social areas, to help prevent the loss of capacities while
investment projects are developed.