The distributive impact of public policy and financing
- Author: Economic Commission for Latin America and the Caribbean
- Main Title: Economic Survey of Latin America and the Caribbean 2009-2010 , pp 55-61
- Publication Date: July 2010
- DOI: https://doi.org/10.18356/6263cfdb-en
- Language: English
The levels of inequality found in the countries of the Latin American and Caribbean region make State action through distributive policies especially important. Public provision of goods and services can change income distribution through programmes whose beneficiaries do not bear the burden of financing (or bear it only in part) and whose impact depends on the level and quality of social spending. But in societies as unequal as those of Latin America, redistributive policy based on public spending is not enough. It is important to examine how this provision is financed and how tax systems work to achieve more equitable income distribution. Not only must a certain amount of resources be generated to finance public spending (especially social spending). It is also necessary to consider which segments of the population are providing those funds
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