UN DESA | DPAD | Development Policy Analysis Division
Capacity Development and Advisory Services
Macroeconomic policy, external shocks and social protection
Economic vulnerability to external shocks, social protection and poverty in Latin America
Economic vulnerability to external shocks, social protection and poverty in Latin America. Conditional cash transfers and non-contributory pension plans can be viable fiscal instruments to offset the negative effects of external shocks on poverty and inequality. This conclusion is drawn from applying an integrated macro-micro modelling framework with data from Bolivia, Colombia, Costa Rica, Ecuador, Guatemala, Nicaragua and Mexico. The results of country studies conducted by national teams were integrated into a comparative analysis. The modelling framework, described in detail, takes explicit account of social protection systems and policies, and is used to gauge the economy-wide effects of external shocks and policy responses through scenario analyses.