Crises and Safety Nets: A Cross-Country Perspective

Oct 2000
This presentation was commissioned by the Poverty Reduction and Social Protection Network of the Regional Policy Dialogue for the Preparatory Meeting celebrated on October 19th and 20th, 2000 in Washington, D.C. Esta presentación fue comisionada por la Red de Reducción de la Pobreza y la Protección Social, del Diálogo Regional de Política, celebrada los días 19 y 20 de octubre de 2000, en Washington, D.C. Evidence across Latin America, East Asia and Eastern Europe show strong links between macroeconomic downturns and rising poverty. One estimate shows every percent decline in growth increases poverty by 2 percent. This effect is greater if crisis increases inequality, as in Latin America. Latin America region is interesting because of repeated crises during the 1980s and 1990s Two findings are worth noting -- Poverty increased after the crisis, In some countries, inequality too increased.