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Argentina Income Support Policies Toward The A WORLD BANK COUNTRY STUDY Argentina Public Disclosure Authorized Income Support Policies toward the Bicentennial Public Disclosure Authorized Public Disclosure Authorized THE WORLD BANK Public Disclosure Authorized A WORLD BANK COUNTRY STUDY Argentina Income Support Policies toward the Bicentennial Copyright © 2009 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First Printing: June 2009 Printed on recycled paper 1 2 3 4 5 12 11 10 09 World Bank Working Papers are published to communicate the results of the Bank’s work to the development community with the least possible delay. The manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally-edited texts. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the International Bank for Reconstruction and Development/The World Bank and its affiliated organizations, or those of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank of the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/The World Bank encourages dissemination of its work and will normally grant permission promptly to reproduce portions of the work. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, Tel: 978-750-8400, Fax: 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, Fax: 202-522-2422, email: [email protected]. ISBN-13: 978-0-8213-8051-2 eISBN: 978-0-8213-8052-9 ISSN: 0253-2123 DOI: 10.1596/978-0-8213-8051-2 Library of Congress Cataloging-in-Publication Data Argentina : income support policies toward the bicentennial / The World Bank ——p. cm. —ISBN 978-0-8213-8051-2 (pbk.) — ISBN 978-0-8213-8052-9 (ebook) –1. Income maintenance programs—Argentina. 2. Economic assistance, Domestic—Argentina. 3. Social security—Argentina. 4. Argentina—Economic policy. 5. Argentina—Social policy. I. World Bank. Argentina, Chile, Paraguay and Uruguay Country Management Dept. —HC180.P63A74 2009 —362.5'820982—dc22 — 2009019209 Abbreviations and Acronyms AAA Analytical and advisory activities ALMP Active labor market program ANSES Administración Nacional de la Seguridad Social CCT Conditional cash transfer CEDLAS Centro de Estudios Distributivos, Laborales y Sociales / Center for Distributive, Labor and Social Studies CIC Integrated Community Center EPH Continuous Permanent Household Survey EPPS Encuesta de Percepción de Planes Sociales en la Argentina / National Survey of Perceptions of Social Policy in Argentina FNE Fondo Nacional de Empleo INDEC Instituto Nacional de Estadísticas y Censos ITP Income Transfer Program MDS Ministry of Social Development MTESS Ministry of Labor, Employment and Social Security NCP Noncontributory pensions NEA Argentinian North East region NOA Argentinian North West region OECD Organisation for Economic Co-operation and Development PIP Plan de Inclusión Previsional (Pension Inclusion Plan, or Moratoria) UTDT Universidad Torcuato di Tella Currency Equivalents Currency Unit = Argentine Peso (Arg$) 1 U.S. Dollar = Arg$3.0202 1 Peso = US$0.331 (as of June 23, 2006) FISCAL YEAR January 1 to December 31 iii Contents Acknowledgments ................................................................................................................ viii Preface ........................................................................................................................................ix Executive Summary..................................................................................................................xi Why Does Argentina Need Social Protection?..............................................................xii What Is the Status of Social Protection in Argentina?.................................................xiii What Happened to Income Support during the Crisis? ..............................................xv What Has Happened since the Crisis?...........................................................................xv What Do Argentines Think about Social Protection?..................................................xvi What Does the Future Hold for Income Support in Argentina? .............................xviii What Is the Potential of Income Support to Reduce Structural Poverty in Argentina?.............................................................................................................xix Final Reflections: What Are the Preconditions for Integrated Social Protection? ...xxi The Report .......................................................................................................................xxii 1. Income Transfer Programs and Social Protection ..........................................................1 Introduction.........................................................................................................................1 Definitions: Social Protection and Income Support .......................................................2 The Size of Income Transfer Programs in Argentina.....................................................5 2. Income Support Policies in Argentina: Origins and Development ...........................7 The Origins of Income Transfer Programs in Argentina...............................................7 Emergency Response and Current Income Support Policy ........................................ 14 Current Income Support Policy ...................................................................................... 25 3. Opinions and Preferences Toward Income Support.................................................... 32 Data and Approach .......................................................................................................... 33 Familiarity and Experience with Programs................................................................... 37 Views about Programs ..................................................................................................... 39 Perceptions of Beneficiaries............................................................................................. 41 Program Design ................................................................................................................4 2 Conclusions ....................................................................................................................... 47 4. Income Support and the Role of the Provinces............................................................. 50 The Federal Model in Argentina..................................................................................... 51 Social Spending at the Subnational Level in Argentina .............................................. 54 Income Support Policies at the Provincial and Municipal Levels.............................. 57 5. Policy Options and Future Challenges........................................................................... 60 The Role of Income Support for the Poor ...................................................................... 61 A Typology of Options..................................................................................................... 61 iv Contents v The Potential Impact of Income Transfers..................................................................... 63 The Simulations.................................................................................................................65 Introducing Behavioral Responses ................................................................................. 70 Implementation Challenges............................................................................................. 73 6. Reflections, Challenges, and Policy Considerations ................................................... 75 7. References............................................................................................................................. 78 Appendixes............................................................................................................................... 81 Appendix A: Methodology of the EPPS............................................................................. 83 Appendix B: Provincial Consultations: Process and Methodology ............................. 85 Selection of Provinces and Key Informants................................................................... 85 Methodology .....................................................................................................................86 Appendix C: Methodology of the Behavioral Simulation .............................................
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