New publication reflects on social policy challenges for improving inclusion and equity

(Lima, October 20, 2011).- CAF - Latin American development bank - presented the publication Social Policies to Promote Citizenship and Social Cohesion which examines the need for institutional changes to adapt to the new realities in the region in an effort to achieve better results in implementing social policies.

The work, which is the first volume of the series Reflections on social and environmental policies published by the multilateral institution, was presented by the CAF vice president of environmental and social development, José Carrera; Peruvian Minister of Production, Kurt Burner; and CAF director in Peru, Eleonora Silva.

The event was also attended by the authors of the study, Horst Grebe and Ana María Sanjuán, and Gustavo Yamada, economist and researcher at the University of the Pacific, who introduced the publication.

During the presentation Carrera said CAF publishes works on important issues for the development of the region under its strategy of promoting social inclusion and equity.

"These editorial contributions are tools which we make available to our partner countries for the definition of public policy and as part of our institutional work and role as an independent think tank," he added.

Eleonora Silva said the book expanded the analysis into new dimensions of social policies, particularly considerations of citizenship and social cohesion.

With the event CAF begins a series of activities to reflect on the challenges of social and environmental policies in the changing conditions of the region and its international participation, Silva said.

According to the authors, "it is not easy for the traditional institutions to meet the need to rebuild and democratize the State, manage emergencies and the new forms of political activity of the social movements, incorporating approaches based on rights and citizenship in polarized societies and understanding that social exclusion is much more difficult to manage than decades ago."

The publication also points out that public spending has a greater redistributive effect in countries which developed state social services early on, and which have achieved higher levels of coverage of basic education and health services.

The book emphasizes that lack of an integrated outlook on social actions, promoted at official level, leads to contradictions and can deepen poverty and inequity, pointing out that the principle of universality states that basic social services provided by the State are the rights of citizens rather than services or merchandise goods.

The authors argue that making progress on a universal social policy requires a "fiscal pact" to increase public revenue and convert tax policy into a more progressive instrument.

The general conclusion of the analysis is clear: higher levels of progressivity of public spending are closely related to the degree of coverage of services, and can reach optimal level when services are universal in scope.

The complete publication is available at http://www.caf.com/attach/15/default/politicas_sociales.pdf