| On decentralization and privatization |
June, 2004
Reforming
Infrastructure: Privatization, Regulation, and Competition
Credible Regulation Vital For Infrastructure Reform To
Reduce Poverty, Says World Bank |
Documents and
Reports from the World Bank archives: |
From The World Bank
Venezuela
- Public Sector Legislative and Administrative Modernization Project Vol. 1 of 1 (2004)
The ratings for the project were as follows: the outcome was unsatisfactory, the
sustainability was unlikely, the institutional development impact was
negligible, and the Bank and borrower performance were both unsatisfactory. The
lessons learned indicate that the Bank should be more sensitive to the political
changes taking place in a country, in order to analyze the implications,
moreover when the Project has not been approved, signed or implementation has
not begun. When a project restructuring is needed, the Bank should agree with
the Government on a time-bound action plan, with specific benchmarks and
milestones, in order to avoid never-ending discussions. Whenever changes occur
at the level of a minister or vice minister of the executing agency, the task
team should take the initiative to approach the new authorities, clarify any
doubts that they could have about the Project, and make special efforts to
involve and commit them to the process. Project approval or signing around the
time of a Presidential election or inauguration may be highly counterproductive
even for the best technically designed operation. While the continuity of task
manager may assist in the generation of sound technical proposals at the design
stage, the frequent changes at the time of supervision may erode the quality of
the constant dialogue and follow up required for Project implementation to
proceed smoothly. Participation and consultation are not exhausted during the
preparation. The Bank should coordinate closely its decision-making process with
multilateral or bilateral partners, in order to take joint decisions at the
project design or implementation stages.
|
From The World Bank
Brazil - Country assistance evaluation Vol. 1 of 1 (2004)
This Country Assistance Evaluation (CAE) reviews key aspects of the Bank's
program in Brazil, based on the central objective of the Bank's assistance to
Brazil in the 1990s and early 2000: poverty alleviation. The strategy became
more selective, focusing on the poor Northeast and on activities expected to
address directly the roots of poverty. The growth element of the strategy
supported the Government 's decentralization, and privatization of
infrastructure through technical assistance, in regulation and selective
lending, while assistance to the environment expanded significantly in the 1990s
focused on green issues. At the end of the 1990s, the Bank shifted to adjustment
lending to assist the Government in its stabilization and reform efforts. The
Bank's assistance program to Brazil produced a sufficient mass of positive
outcomes to be rated as satisfactory. The program contributed only modestly to
the decline in income poverty rates - the gains resulted primarily from
eliminating high inflation - and, the program contributed only indirectly, by
helping the Government sustain stabilization at the end of the decade. However,
the program contributed importantly to the impressive improvement in social
indicators, and to the expanded access of the rural, and urban poor to basic
infrastructure, and, the education gains will likely translate into reduced
poverty and inequality. Nevertheless, in going forward, these gains will need to
be enhanced for Brazil to achieve further reductions in poverty and inequality.
Moreover, policies must maintain fiscal discipline to ensure access to external
finance, keep inflation low, and prevent an erosion of the gains of the 1990s,
including completing tax, social security, and financial sector reforms
considered critical.
|
From The World Bank
International
political risk management : the brave new world Vol. 1 of 1 (2004)
Part One provides a first look from the "supply side" at the reaction of the
political risk insurance market to September 11, 2001, the Argentine economic
crisis, and other recent corporate upheavals. This section starts off with the
public provider's perspective, provided by Vivian Brown, Chief Executive of the
U.K.'s Export Credits Guarantee Department (ECGD) and President of the Berne
Union.
Part Two explores the reactions of investors and lenders to the recent
upheavals in the global economy. It pays particular attention to the problems
confronting large infrastructure projects, in which purchase agreements are
guaranteed by the host country, and revenues are denominated in local currency.
It examines how political risk insurance can help lenders to return to financing
infrastructure development in emerging markets, and asks to what extent
investors and lenders need new products or new kinds of coverage to deal with
currency crises.
Part Three brings together Felton "Mac" Johnston, President,
FMJ International Risk; Charles Berry, Chairman, Berry, Palmer & Lyle
Limited; and Witold Henisz and Bennet Zelner, Assistant Professors at Wharton
and Georgetown University respectively. Additional commentary is provided by
David Bailey, Vice President, Sovereign Risk Insurance Ltd. and Edith Quintrell,
Manager, Insurance, at the Overseas Private Investment Corporation, who provide
perspectives on how the political risk insurance industry might evolve to meet
the needs of insurers and reinsurers, on the one hand, and investors and
lenders, on the other.
|
From The World Bank
Subnational
capital markets in developing countries : from theory to practice
Vol. 1 of 1 (2004)
Editors: Mila Freire and John
Petersen with Marcela Huertas and Miguel Valadez
In developing countries the twin tasks of building more dispersed and democratic
governments and opening economies to freer markets and greater private ownership
have been attempted in tandem-and have proved a difficult undertaking. A
reduction in barriers to the movement of capital and goods has been a nearly
universal objective. However, implementation of the required reforms has meant
tough competition for domestic industries and increasing constraints on the
fiscal and monetary policies of national governments. In the face of economic
slowdowns and unstable financial markets, many emerging and developing economies
have found privatization and the opening up of their economies to be painful and
unpopular. The steep price and uncertain benefits of joining global markets have
their critics. Subnational governments, for their part, are being required to do
more things, to do them more efficiently, and to be more self-reliant in raising
resources. At the same time devolution and hard-pressed budgets have constrained
the ability of central governments to provide for the needs of subnational
governments. After years of neglect and with expectations rising, the needs for
infrastructure are particularly daunting. The enormous funding requirements
cannot be met either practically or equitably without long-term investment.
International lending and grant-giving institutions, another traditional source
of funds, are also limited in their resources and restricted by rules and
customary practice to dealing only through sovereign governments.
|
| Turkey
- Greater prosperity with social justice policy notes Vol. 1 of 1 (2003) |
| Turkey
- Greater prosperity with social justice policy notes Vol. 1 of 1 (Turkish)(2003) |
| Ethiopia
- Economic Rehabilitation Support Credit Project Vol. 1 of 1 (2003) |
| Mozambique
- Public expenditure review : Phase 2 - sectoral expenditures Vol. 1 of 1 (2003) |
| Pakistan
- Structural Adjustment Credit for the Government of Sindh Province Vol. 1 of 1 (2003)
|
| Slovak
Republic - Joining the EU : a development policy review Vol. 1 of 1 (2003) |
| Indonesia
- Suralaya Thermal Power Project and Sumatera and Kalimantan Power Project Vol. 1 (2003)
|
| Rural
extension services Vol. 1 (2003) |
| Benin
- Under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative (Completion Point
Document) Vol. 1 (2003) |
| The
effects of a fee-waiver program on health care utilization among the poor : evidence from
Armenia Vol. 1 (2003) |
| Niger
- Country assistance strategy Vol. 1 (2003) |
| Slovak
Republic - Development policy review Vol. 1 of 2 / Summary report (2002) |
| Slovak
Republic - Development policy review Vol. 2 of 2 / Main report (2002) |
| Romania
- Building institutions for public expenditure management : reforms, efficiency and equity
- a Public Expenditure and Institutions Review Vol. 1 (2002) |
| Vietnam
- Agricultural Rehabilitation Project Vol. 1 (2022) |
| Assistance
to transition economies : were there alternatives ? Vol. 1 of 1 (2002) |
| |
| Pakistan
- Sindh Structural Adjustment Credit Project Vol. 1 (2002) |
| Guinea
- Decentralized Rural Electrification Project Vol. 1 (2002) |
| Congo,
Republic of - Transparency and Governance Capacity Building Project Vol. 1 (2002) |
| Slovak
Republic - Development policy review Vol. 2 of 2 / Main report (Slovak)(2002) |
| Indonesia
- Development policy review : the imperative for reform Vol. 1 (2001) |
| Breaking
up the collective farm : welfare outcomes of Vietnam ' s massive land privatization Vol. 1
(2001) |
| Venezuela
- Public Sector Legislative and Administrative Modernization Project Vol. 1 (2001) |
| The
development of property taxation in economies in transition - case studies from Central
and Eastern Europe Vol. 1 (2001) |
| Transition
12 (3) Vol. 1 (2001) |
| Technical
efficiency gains from port reform : the potential for yardstick competition in Mexico Vol.
1 (2001) |
| Transition
12 (1) Vol. 1 (2001) |
| Integration
of transport and trade facilitation : selected regional case studies Vol. 1 (2001) |
| Transition
11 (6) Vol. 1 (2001) |
From The World Bank
Report
on the meeting of the Latin American and Caribbean Forum on Poverty, Inequality, and
Vulnerability : Buenos Aires, October 19-20, 1998 Vol. 1 (2000)
This report summarizes the discussions from the "Forum on Poverty, Inequality,
and Vulnerability," organized in Buenos Aires, Argentina, on October 19-20,
1998, by the World Bank's Latin America and the Caribbean Region (LAC), the
World Bank Institute, and the team working on the Bank's "World Development
Report on Poverty and Development." The forum emphasized that inequality is the
central factor of the poverty problem in Latin America, and upheld the need to
persevere against it. Other presentations focused on the different policy
options available to improve poor people's access to basic services; discussed
experience gained in the region while applying four options--decentralization,
privatization, participation, and public-private partnerships; and proposed an
analytic framework. Also stressed was the importance of understanding how labor
markets function and the labor market crisis in the 1990s. Employment was
identified as a principal poverty-fighting mechanism; education and training was
the most efficient path to stable employment. The World Bank Report on Poverty
and Development 2000/1 was also unveiled. Session leaders underscored the
report's innovative methodology, preparation, and participation (the drafting
team was multidisciplinary, with extensive female participation and non-Bank
staff). Because poverty levels continue to be unacceptable, other actions, such
as modifying income determinants, and instituting income-transfer policies must
occur.
|
| Sri
Lanka - Recapturing missed opportunities Vol. 1 (2000) |
| Indonesia
- Public spending in a time of change Vol. 1 (2000) |
| The
political economy of infrastructure investments in Nigeria Vol. 1 of 1 / The political
economy of infrastructure investments in Nigeria (2000) |
| Indonesia
- Public spending in a time of change Vol. 1 (2000) |
| Guatemala
- Expenditure reform in a post-conflict country Vol. 1 (2000) |
| India
- Policies to reduce poverty and accelerate sustainable development Vol. 1 (2000) |
| India
: reducing poverty, accelerating development Vol. 1 (2000) |
| Tanzania
- Public Sector Reform Program Project Vol. 1 (1999) |
| Privatization
and regulation of the seaport industry Vol. 1 (1999) |
| Madagascar
- An agenda for growth and poverty reduction Vol. 1 (1999) |
| The
Russian city in transition - the first six years in ten Volga capitals Vol. 1 (1999) |
| Financing
higher education in Africa : Makerere, the quiet revolution Vol. 1 (1999) |
| Lithuania
- Country assistance strategy Vol. 1 (1999) |
| Senegal
- Agricultural Services and Producer Organizations Project Vol. 1 (1999) |
| Light
and lightning at the end of the public tunnel : reform of the electricity sector in the
Southern Cone Vol. 1 (1999) |
| Reforming
Bolivia ' s power sector Vol. 1 of 1 / La reforma del sector electrico de Bolivia (1999)
|
| Reforming
Bolivia ' s power sector Vol. 1 of 1 / Reforme du secteur de l ' electricite en Bolivie
(1999) |
| Reforming
Bolivia ' s power sector Vol. 1 (1999) |
| Southern
African agribusiness : gaining through regional collaboration Vol. 1 (1999) |
| Madagascar
- An agenda for growth and poverty reduction : country economic memorandum Vol. 1 (1998)
|
| The
transport sector in Mexico : an evaluation Vol. 1 (1998) |
| Reforming
the Russian electricity sector Vol. 1 (1998) |
| Zimbabwe
- Agricultural Services and Management Project (ASMP) Vol. 1 (1998) |
| Venezuela
- Public Sector Modernization and Decentralization Project Vol. 1 (1998) |
| Concessions
for infrastructure : a guide to their design and award Vol. 1 (1998) |
From The World Bank
The case-by-case approach to privatization : techniques and examples Vol. 1 (1998)
Most privatization programs outside the transition economies take a case-by-case
approach. Governments move control of state enterprises to the private sector,
usually one at a time, using domestic and international public offerings, trade
(third-party) sales, or a combination of the two (a mixed sale). The
case-by-case approach allows government to pay close attention to the policy
issues surrounding privatization. It also allows structure privatizations to
bring in needed foreign capital, knowledge, and market connections; and
maximizes the financial returns from privatization. Drawing on global
experience, this paper provides practical guidance to government officials
charged with managing case-by-case privatization programs. It identifies the
five key steps in case-by-case privatization, describes sale options and the
processes for carrying them out, and examines special conditions, such as golden
shares. It then outlines how governments should undertake case-by-case
privatization, identifying basic principles and common challenges, describing
various methods for valuing state enterprises, and explaining the role of
financial advisers and sales agents in valuing privatization candidates and
developing options for sale.
|
| Zimbabwe
- Agricultural Services and Management Project Vol. 1 (1998) |
| 1995
and 1997 questionnaires - Nicaragua school autonomy reform Vol. 1 (1998) |
| |
| India
- Haryana Power Sector Restructuring Project Vol. 1 (1997) |
| Private
ownership and corporate performance : some lessons from transition economies Vol. 1 (1997)
|
| Albania
- Enterprise and Financial Sector Adjustment Credit Vol. 1 (1997) |
| Jamaica
- Public Sector Modernization Project Vol. 1 (1997) |
| Venezuela
- Public Sector Modernization and Decentralization (PSMoD) Vol. 1 (1997) |
| Laos
- Priorities for rural infrastructure development Vol. 1 (1997) |
| A
framework for reforming urban land policies in developing countries Vol. 1 (1996) |
| Jamaica
- Public Sector Modernization Project Vol. 1 (1996) |
| Bulgaria
- Private sector assessment Vol. 1 (1996) |
| Lending
for electric power in Sub-Saharan Africa Vol. 1 (1996) |
| Russian
Federation - Housing reform and privatization : strategy and transition issues Vol. 1
(1995) |
| Ownership
and financing of infrastructure : historical perspective Vol. 1 (1995) |
| Decentralization
of the socialist state : intergovernmental finance in transition economies Vol. 1 (1995)
|
| Transition
6(3) Vol. 1 (1995) |
| Fiscal
decentralization and intergovernmental finances in the Republic of Albania Vol. 1 (1994)
|
| Central
bank independence : a critical view Vol. 1 (1994) |
| Viet
Nam - Public sector management and private sector incentives Vol. 1 (1994) |
| Colombia
- Power Market Development Project : sector environmental assessment - Colombian
electricity sector Vol. 2 (1994) |
| Colombia
- Power Market Development Project : sector environmental assessment - Colombian
electricity sector Vol. 3 (1994) |
| Colombia
- Power Market Development Project : sector environmental assessment - Colombian
electricity sector Vol. 1 (1994) |
| Uruguay
- The private sector Vol. 1 (1994) |
| Making
a market : mass privatization in the Czech and Slovak Republics Vol. 1 (1993) |
| Property
tax in Anglophone Africa : issues and constraints Vol. 1 (1993) |
| Wage
controls during the transition from central planning to a market economy Vol. 1 (1993)
|
| Fiscal
decentralization and intergovernmental relations in transition economics : toward a
systematic framework of analysis Vol. 1 (1993) |
From The World Bank
Public
enterprise reform : the lessons of experience Vol. 1 (1991)
This book tries to systematize the lessons learned in the past two decades of
public enterprise reform to correct the perceived deficiencies of
state-enterprise sectors in Africa, Asia, and Latin America. It addresses the
macroeconomic adjustments typically required in the effort to fashion a more
open and competitive economy - liberalizing trade and ending preferential
treatment for state enterprises; shifts toward market-oriented financing in the
banking system; moves toward market pricing and reforming the institutional
structure for setting tariffs; and establishing more competitive and evenhanded
compensation and staffing policies in state enterprises. It argues that with
macroeconomic reforms under way, government needs to ground its reform of state
enterprises in an assessment of the purposes to be served by its state-owned
sector. It describes how reforming the relationship between government and its
enterprises entails striking a delicate balance between autonomy and
accountability. The report examines the mechanisms used by governments in a
variety of developing countries to set goals for state-owned firms and to
evaluate their performance. It addresses the promise and the risks of
privatization, whether through outright sales, management contracting, leasing,
franchising, contracting-out, or encouraging new entrants into the private
sector. It also offers an overview of the task facing governments with a failing
public enterprise sector.
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|
M. Dulic, August
24, 2004
Is decentralisation vital for poverty
reduction?
In a series of development paradigms, decentralization
that carries the premises of democracy is one of the latest development strategies to
reduce poverty. According to the glossary (KIT Information and Library Services, ILS,
2002), "decentralization is the gradual process of transforming power and resources
from central government to the lower level of government, such as the regions, provinces,
districts and municipalities." Although this definition does not explain how
decentralization can reduce poverty, empirical evidence indicates that decentralization
provides better accountability and responsiveness. When a society is decentralized, social
capital has a better chance to sustain itself and participation at different local levels
gives a community a role of a direct client and controller over the society's own needs
(Katsiaouni, 2003). |
From War on Want
Privatization, Power and Poverty
The privatisation of public services in developing countries is hampering
the global fight against poverty.
The evidence shows that the poor are denied access to essential services when
multinationals take over. Private companies have failed to extend services to
ensure that the poorest people can access them, as well as increasing the prices
of services beyond what the poorest can afford. Governments are best placed to
provide public services on the scale needed to tackle poverty and ensure access
and affordability for all. No wonder there are so many cases where privatisation
has been deeply unpopular – witness mass protests in Bolivia, Peru, the
Dominican Republic, India, South Africa and elsewhere.
DFID's global power
empire:
Profile of power company Globeleq, wholly owned by the UK
government and using taxpayers’ money for electricity
privatisation.
Profiting from Poverty
[pdf]:
Report analysing the role of privatisation consultants in
developing countries.
Privatisation Briefing
[pdf]:
Outline of public service privatisation and how the poor can’t
afford it.
Water for Sale
[pdf]:
Report in which workers examine the effects of privatisation in
South Africa.
|
United Nations Development Programme - UNDP - 2003
Decentralised Governance for Development:
A Combined Practice Note on Decentralisation, Local Governance and Urban/Rural
Development
Decentralised Governance, carefully planned, effectively
implemented and appropriately managed, can lead to significant improvement in
the welfare of people at the local level, the cumulative effect of which can
lead to enhanced human development.
Decentralised governance is not a panacea or a quick fix. The key to
human development-friendly decentralised governance is to ensure that the
voices and concerns of the poor, especially women, help guide its design,
implementation and monitoring.
Decentralised governance for development (DGD) encompasses
decentralisation, local governance, and urban/rural development – three areas
that may have distinct delineations and yet share attributes that call for
greater conceptual and operational synergy.
DGD is a key area of democratic governance which in turn is crucial to
attaining human development and the MDGs.
For development and governance to be fully responsive and
representational, people and institutions must be empowered at every level of
society – national, provincial, district, city, town and village. From UNDP’s
perspective, DGD comprises empowering of sub-national levels of society to
ensure that local people participate in, and benefit from, their own governance
institutions and development services. Institutions of decentralisation, local
governance and urban/rural development must bring policy formulation, service
delivery and resource management within the purview of the people. These
institutions should enable people, especially the poor and the marginalized, to
exercise their choices for human development.
|
United Nations
Economic and Social Commission for Asia and the Pacific - UNESCAP - 2000
Socio-Economic
Measures to Alleviate Poverty in Rural and Urban Areas
"Rural poverty alleviation through economic and social development was high on
the state agenda in almost all countries of the Asian and Pacific region during
the second half of the twentieth century. To achieve that goal, several
development models were experimented with. These ranged from state-driven import
substitution to market-driven export promotion models, from agriculture focused
to infrastructure focused models and from the trickle-down approach to directly
focused programmes. Several other policies, such as effective land reform,
development of irrigation and drainage systems, subsidized inputs and credit
facilities, human resources development and primary education and health care
services were also pursued to achieve economic and social development. As a
result, the incidence of poverty declined during the 1980s and 1990s, but with
sharp variations across the region."
|
United
Nations Capital Development Fund (UNCDF) - 2003
Empowering the Poor. Local Governance for Poverty Reduction
By Angelo Bonfiglioli -
UNCDF Senior Technical Advisor
In order to better meet its own mandate to reduce poverty, the United
Nations Capital Development Fund (UNCDF) has, since 1995, come
through intense and far-reaching changes. Today, it is specialized in
two areas: support to decentralized public investments (through local
governance) and support to small-scale private investments (through
microfinance). The focus on these two areas allows UNCDF to ensure
the best possible impact on poverty reduction and on building capacity
of national and local stakeholders.
In local governance, UNCDF investments are meant to foster a
people-centred approach, promote good governance at the national
and local levels, reinforce human and institutional capacities, reduce
vulnerability, and protect the environment. UNCDF activities are also
geared to mobilize additional financial resources. In supporting decentralized
public investments, UNCDF pursues the global objective of
poverty reduction.
The main concern is to ensure better access of the
poor to essential infrastructure and socio-economic services in the sectors
of health and education, road transport, markets, water supply and
the management of natural resources. In addition, UNCDF recognizes
the need to promote participation at the local level, in order to allow
local populations to identify solutions that address the local context. It
is necessary to ensure the effective participation of women in the decision-
making processes, decisions that will affect their daily lives and the
future of their children and families. It is also important to ensure the
participation of civil society as a whole and to build the capacities of local
governments and local officials, so that public investments are managed
in the common interest
|
Fifth Global Forum on Reinventing Government
(Interactive Workshop :Decentralised Governance)- 2003
(UNDP, UNCDF, WBI and UN-DESA)
Decentralization and Poverty Reduction: Does it Work?
In a forum, such as this, one is permitted, or indeed encouraged, to ask questions for
stimulating dialogue. For example, what is decentralisation and how exactly does it fit
into the sphere of good governance ? Further, if there are well known prerequisites for
good governance, are there equally prerequisites for decentralisation? If decentralisation
is embraced so clearly both by national governments, and donors, why is progress,
especially in Africa, limping and fragile? Finally, and more crucially, does
decentralisation affect poverty reduction, and if this is the case what more can be done to
shore up decentralisation in developing countries? It would seem to us that progress in
answering these questions would not only help to bring clarity to the role of
decentralisation, within the sphere of governance, but would enable us to see where the
links are between decentralisation and poverty reduction – a core element in the
Millennium Development Goals, MDGs. Hence, as this is work in progress, it is based
largely on field experience, on secondary sources, and on the discussions and findings
from two recent workshops on the theme that UN-DESA was involved, than on
systematic academic research.
|
| The
social effects of decentralisation and privatisation: |
Chile - A. M. Arteaga - 2003
The brutal rationale of
privatisation
«Beyond euphemisms, privatisation of health, social security and education operated by
neo-liberals has imposed a brutal rationale: depending on the amount of money you have,
you will have so much health care, quality of education for your children and pension
upon retirement. If you are privileged, you will have access to privileged services. If you
are poor, you will have to make do with what the public system is able to give you.»
Mexico - A. Sandoval Terán - 2003
Now the responsibility lies
with the individuals
Stabilisation and structural adjustment programmes adopted following the foreign debt
crisis in 1982 have included the total or partial privatisation of many state companies and
activities in various sectors: industrial, financial, agriculture and stock-raising, mining,
infrastructure, communications, petro-chemical and even social security. Along with
cutbacks in social expenditure associated with trends to privatise public and basic services,
the «novelty» lies with the transfer of State responsibility to private companies.
Chile - A. M. Arteaga-C. Ochsenius.-2004
Low-intensity democracy
Despite its economic stability and the substantial improvements that the Government has achieved
in the rates of poverty and education, 52% of Chileans “feel they are losing out, and 74% have
negative feelings about the country’s economic system”. This is no paradox, since according to the
World Bank, Chile is among the 15 countries with the worst income distribution in the world.
Things are not much better in politics, where the principle of “one person, one vote” is not viable in
the “protected democracy” inherited from the military dictatorship.
Mexico A. Sandoval Terán - 2004
Rights and
human security to break the vicious circle
Neo-liberal economic policies generate multiple vicious circles of human insecurity. One of these
circles (involving indiscriminate trade liberalisation, the crisis in rural areas and migration) illustrates
the extent to which economic, social, cultural and environmental rights are being violated. In
December 2003, following recommendations made in the Diagnosis of the Human Rights Situation
in Mexico, President Vicente Fox made a commitment to set up a National Human Rights Programme.
It is essential that the State addresses the question of rights by taking a holistic approach that recognises
their interdependence, in order to start creating “virtuous” circles of human security.
Chile- C. Pey, D. Donoso and L. Arellano - 2002
Growth without equity
At the beginning of the twenty-first century, Chile shows paradoxical characteristics. While Chile
is being touted as a champion of economic liberalisation, the country is finding that the free trade
measures adopted are not reactivating its economy or reducing the persistent and high
unemployment rate and the serious and prevailing inequality. The private sector is not receptive
to monetary and tax incentives, and the old government is financing thousands of emergency
jobs, an intervention that reminds us of the hardest times of the 1980s.
Mexico - A. Sandoval Terán - 2002
Priorities of the Vicente Fox government
To generate more resources for social development, Mexican President Vincente Fox promoted
a regressive tax reform during 2001. The real objective was to achieve, at any price, a lower level
of public debt, as demanded by the international financing agencies. While social development
is not a priority, payment and redemption of public debt are ensured.
Chile - L. Arellano - D. Donoso - C. Pey - 2001
Stagnant and disenchanted
In 2000, the countries of the region were strongly affected by a variety of problems: the
political crisis in Peru; sharp social unrest in Bolivia, which literally paralyzed the country;
and the strong financial, political, ethical and social crisis affecting Argentina. In this
company, Chile appears to be an exception, demonstrating a “healthy economy” and
political stability.
Mexico - R. Aguilera - A. Sandoval Terán - 2001
Among the most unequal
At the 1995 Social Summit in Copenhagen, countries committed themselves to policies
and programs to promote and protect equal opportunity and overcome disparities in
wealth, both within and among nations. The fourth commitment specifically addresses
promotion of social integration based on equality and respect for human dignity. Despite
some progress, “Mexico is among the 15 countries with the worst concentration of
income in the world.”2
Chile - D. Donoso - M. Hidalgo - O. Torres - 2000
Precarious progress
The weight and presence of transnational capital in the
Chilean economy has kept growing, however, and the
decisions and interests of those who control this capital are
becoming more powerful in determining not only the
economic, but also the social, political and cultural
structure and dynamics of Chile.
Mexico - A. Sandoval Terán - 2000
Much ado about nothing
Guerrero and Oaxaca, are only some of the indicators that
little progress has been made toward fulfilling commitments
made at Copenhagen and Beijing.
During the administration of President Ernesto Zedillo, the
government has taken various legislative, economic policy and
social measures and has plans and programmes to solve the
problems of social development. These measures have not achieved
their objectives or done so insufficiently; some have even resulted
in greater impoverishment of the population.
Chile - X. Valdés - 1998
Inequality: the latest data
Chile has followed this tendency. It has maintained annual
growth rates of higher than 7%. The income share of the poorest
40% of households remained the same, while the richest 10% of
households increased their share of the total income from 1990 to
1994, according to ECLAC figures. This situation was unchanged
in 1996.
Towards the end of 1996, MIDEPLAN carried out the CASEN
survey for the sixth time. This survey measures the development
of income distribution, poverty and mployment in the country
from 1987 onwards. The latest results of this survey show the
following:...
Mexico = S. Cruickshank - M. Purcell - 1998
More poor than 15 years ago
For 69 years Mexico has been governed by a single party, the
Institutional Revolutionary Party (PRI). Although there have been
opposition parties (with a growing presence since the mid–eighties),
the executive, legislative and judicial branches of government
have been controlled by the PRI throughout this period.
In 1996, after a series of negotiations among the country’s
principal political parties, an electoral reform law was passed by
the PRI without the support of the opposition parties. The latter
insisted on more far–reaching reforms in areas that the PRI was
not willing to cede. An important limitation of the reform was its
strict focus on «leveling the playing field» among political parties
only, leaving organised civil society out of consideration. Concrete
proposals for building a more accessible democracy for all – including
legal recognition of plebiscites and referendums, for example
– were disregarded. Thus, while advances were made in
terms of greater equity among political parties, there is still a
long way to go in terms of improving equal access to democracy
among civil society at large.
Chile - X. Valdés - T. Valdés - J. Bengoa - 1997
Economic growth and poverty
Economic growth has once again fallen into income concentration,
which, even though not reversed, had come to a halt in
the 1990–1992 period, when there were no substantial variations
in the sharing–out of wealth between the different social
sectors. The homes of the richest fifth of the population took
nearly a whole point more of the total wealth in 1994 compared
with 1992, while the poorest homes became poorer by
nearly the same amount.
Mexico - C. Casabuenas - C. Heredia - M. Purcell - 1997
Diagnosis of poverty and inequality
During 1996 the social situation continued to deteriorate. Although
macroeconomic indicators evolved more favourably than
in disastrous 1995, most people’s standard of living worsened.
Since 1982, when structural adjustment policies were introduced,
mean income growth per capita has been less than the average
population growth. The economic model and the growing external
debt turned Mexico into a country of debtors with scant possibilities
for productive work and for generating the income to cover
costs. Employment is falling and the cost of living is increasing.
In a recent survey, when people were asked «For you, economically,
1996 has been», 50% of individuals surveyed answered
«worse than 1995», 26% «the same as 1995», and only 24% «better
than 1995».
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