Public social expenditure and the need for a social contract in Latin America

Abstract

The level and structure of public social expenditure in Latin America continue to fall short of what is required to meet the social needs of the vulnerable population. Considerable advances in reducing indigence notwithstanding, these shortcomings have led to slow progress in alleviating non-extreme poverty and reducing inequalities in the region. On the one hand, the level of such spending is insufficient, and funds are administered under severe budgetary constraints resulting from low rates of taxation and the narrow coverage of contributory social protection programmes; on the other, the structure of expenditure has to be constantly adapted to address emerging social needs before existing ones have been met.