Argentina: Income Support Policies Toward the Bicentennial by The World Bank

By The World Bank

Following the intense fiscal problem in 2001 02, Argentina mobilized an unparalleled attempt to supply source of revenue help to the phase of the inhabitants such a lot in want. Now, as progress has lower back and social signs recovered to precrisis degrees, there's a gap to maneuver from emergency aid courses to a extra complete, long term, and sustainable method for social security. The problem is to layout and completely enforce a social safety process that has sufficient assurance 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 talk in regards to the way forward for source of revenue help regulations in Argentina, taking the perspectives, values, and personal tastes of the stakeholders and the inhabitants as beginning issues. The learn integrated cutting 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, generally on the provincial point; and moment, a countrywide, consultant opinion survey at the perspectives and perceptions of the inhabitants relating to social coverage and source of revenue help courses specifically.

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The sustained upward trend drove the unemployment rate up from 5 percent to 20 percent between 1991 and 2002. By 2007 the percentage of people not working but looking for a job was below 10 percent. Until 1995, unemployment and GDP seemed to be positively correlated. However, since the second half of the 1990s the indicators were negatively correlated, although GDP seems to be slightly more volatile. Inflation may have cushioned this elasticity. 8. GDP, Unemployment, and Informality, 1980–2007 Sources: Ministry of the Economy; INDEC Permanent Household Survey.

Several other workfare programs were designed and implemented in the 1990s, although their coverage and impact were very limited. 9 shows that until 2001 the peak of the series of beneficiaries had only reached 130,000. 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.

First, the flow of new beneficiaries to the defined contribution scheme has decreased drastically. Previously, new workers not declaring their preference between defined contributions and defined benefits were automatically enrolled in the defined contributions scheme. This default (c) The International Bank for Reconstruction and Development / The World Bank 24 World Bank Working Paper option was reversed, implying that 90 percent of new entrants to the labor market will now go to the defined benefits scheme every month.

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