The Politics of Adjustments to Cash Transfer Programs in Latin America

• In Event: Politics of Pre-Distribution and Redistribution

Abstract

In the last decades, left- and right-leaning governments in Latin America have implemented various social policy reforms. Recent evidence suggests that ideological shifts have not necessarily translated into clear patterns of social policy expansion or retrenchment. While some administrations have created entirely new flagship programs, others have resorted to institutional layering or have engaged in policy drift. We explore this variation in social policy change, focusing on cash transfers, one of the most prominent policy tools in the region, and an “easy” policy to implement in times of austerity. Prior work has extensively analyzed the determinants of the adoption of non-contributory programs in Latin America, but we know less about the change in these policies and their implications. Drawing upon an original database, we first study the range and magnitude of adjustments to cash transfer programs in the region, including changes to targeting criteria, associated services, transfer amounts, and conditionalities. We then examine the determinants of these changes, considering the role of government ideology, electoral incentives, and structural constraints.

Authors

• Melina Altamirano, El Colegio de México

• Maria Cecilia Rossel, Catholic University of Uruguay