Fiscal Policy & the Poor in Latin America

This post is also available in: Español 

Good fiscal policy not only promotes macroeconomic stability and growth, it is also a powerful tool for directly reducing poverty and inequality. Many governments around the world have raised and spent funds to build the assets of the poor and to directly redistribute income, successfully improving welfare and constructing more prosperous and equal societies.

Unfortunately, fiscal policy in Latin America does not have a good record of reducing poverty and inequality. Why? According to the best information available, the combination of inadequate revenues, low-quality services and poor targeting helps explain why poverty has declined so slowly and why inequality has remained extraordinarily high.

Download the complete brief below.



Suggested Content

Earthquake Exposes Haiti’s Silent Crisis

Haiti represents one of the most complex and deeply rooted challenges facing U.S. foreign policy in the Western Hemisphere: a failing state on the doorstep of the world’s most powerful nation.


Haiti’s Faint Signs of Progress Take a Vicious Blow

Since achieving independence in 1804 to become the world’s first free black state, Haiti has been beset by turbulent, often violent, politics and a gradual but seemingly unstoppable slide from austerity to poverty to misery.