Fiscal Policy and Inclusive Growth in Latin America: Lessons for Asia

Sang-Hyop Lee and Donghyun Park

No 408, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Broadly speaking, developing Asia and Latin America are at similar income and development levels. Relative to the advanced economies, economic growth and development are much more urgent priorities for both, yet Latin America has significantly more experience in using fiscal policy to tackle inequality and to promote inclusive growth. Therefore, its greater experience with inclusive fiscal policy can offer valuable lessons for developing Asia in its new-found quest to leverage public spending and taxation to spread the benefits of growth to the broader population. While the Latin American experience has general implications for Asia, of particular interest is its generally successful experience with conditional cash transfer (CCT) programs. Overall, the evidence suggests that CCT programs can be an effective tool for inclusive growth in Asia, too. However, CCTs are not a panacea for poverty and inequality, and the ingredients for their success in Asia may differ from those in Latin America.

Keywords: fiscal policy in Latin America; conditional cash transfer; social protection (search for similar items in EconPapers)
JEL-codes: H50 H53 I38 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2014-10-28
New Economics Papers: this item is included in nep-lam, nep-pbe, nep-pub and nep-sea
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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