Protecting Latin America’s Poor During Economic Crises

By Nora Lustig
February 18, 2010

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History tells us that economic crises cause large increases in poverty and slow down or reverse progress in key social indicators. Even when governments try to protect the poor, they often lack the institutional capacity to do so quickly and effectively.  The brief describes how past economic crises have affected poverty, education and health in Latin America, and suggests a pro-poor policy response in three areas: the macroeconomic policy mix, the composition of fiscal adjustments and social safety nets. It is the second in a series of policy briefs that will target key issues on the region’s social agenda.