Can Social Sector Reform Make Adjustment Sustainable and Equitable? Lessons from Chile and Venezuela-p

Abstract

Adjustment in Latin America has largely been analysed in terms of macroeconomic policy. However, for reforms to be sustainable in the long term, there needs to be accompanying change in the social sectors. Such reform is difficult and costly. It is necessary, however, not simply to sustain the economic reforms, but also for an effective long-term strategy of poverty alleviation and for the consolidation of democracy. There are lessons to be learnt from successful and unsuccessful social sector reform.

Majority voting leads to unanimity

“…For a discussion of compensations under reforms, see Haggard and Webb (1994, pp. 23-35), Angell and Graham (1995), Weyland (1998), and Edwards and Lederman (2002).…”

Gender and governance: democratic consolidation and economic reform

“…Second the need to institutionalize distributional con¯icts by absorbing them into the political arena so that the majority of the population`own' the reforms rather than feeling that they have been imposed from above, has also been emphasized (Bresser Pereira et al, 1993). This focus has been accompanied by a concern with the need to reduce poverty by targeting the disadvantaged groups particularly the`new poor' through social sector adjustment rather than through old statist welfare policies (Angell and Graham, 1995;Graham, 1994). It is now considered necessary to build coalitions for economic reform and to incorporate new and hitherto excluded groups if both consolidation and economic reform are to be sustained.…”

The ‘Neoliberal Turn’ and the New Social Policy in Latin America: How Neoliberal, How New?

“…25 25 Angell and Graham (1995) argue that decentralization is part of the prevailing market consensus ensuring greater compatibility with the competitive market model. …”