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Examining myths and truths in public social policy: the Latin American case

Latin America is a continent with enormous economic potential going through a hopeful and positive process of democratization. But it nevertheless presents acute social problems: 44 percent of the population is poor; 60 percent of children live below the line of poverty; and nearly 20 percent of young people are unemployed. A central reason for this is the high level of inequality. According to available reports, these inequalities were worsened by the orthodox policies applied in countries like Argentina during the 1990s, which reduced the middle classes and increased polarization. Social public policies can be key to the future of the region. This study examines a series of myths about these policies that lead down erroneous paths and that are applicable to other regions of the developing world as well. It suggests the need to overcome such myths and urgently advance economic policies with a human face as well as aggressive and well-managed social policies.