A New Social Contract for Peru: An Agenda for Improving Education, Health Care, and the Social Safety Net

By Daniel Cotlear | Go to book overview

CHAPTER 2
Public Expenditure
in the Social Sectors

José R. López-Cálix

When public services fail poor people, a good place to start looking for the underlying problem
is almost always how the government spends money. If politicians and policymakers spend
more than they can sustain, services deteriorate. If budgets are misallocated, basic services
remain underfunded and frontline providers are handicapped. And if funds are misappropri-
ated, service quality, quantity and access suffer. The budget is the critical link on the long route
of accountability connecting citizens to providers through politicians and policymakers.

World Development Report 2004

During the Toledo administration, Peru’s poverty reduction strategy has essentially relied on the trickle-down effects from economic growth. Successful efforts to restore fiscal discipline have been critical to promoting economic recovery. Fiscal discipline—reflected by lower fiscal deficits—has been obtained through a combination of dramatically reduced capital spending, modest increases in taxation, and some debt service savings from an active public debt management. Growth has averaged around 4.5 percent per year, but its impact on poverty reduction has been mitigated, at best. The question is, Why?

First, social spending remains low, at around 5.6 percent of gross domestic product (GDP), only modestly increasing by end-period. Economic growth by itself is a major determinant of poverty outcomes, but, according to international experience, it is public spending that makes most dramatic improvements possible. Thus, fiscal discipline has not translated into additional social outlays, and budget rigidities need to be explored.

Second, the particular mix of measures implemented for restoring fiscal discipline has resulted in a double-edged outcome for poverty. On one hand, lower deficits have led to low inflation, higher growth, and a strong external position, all of which have contributed to improving living standards—measured by income per capita levels—and by some social

-43-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
A New Social Contract for Peru: An Agenda for Improving Education, Health Care, and the Social Safety Net
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 307

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.