Social Policies and Poverty Reduction in Argentina: A Comprehensive Approach

1. Daniel ArroyoSecretary of Social Policies and Human Development Social Development National MinistryArgentine Republic November 2004, Washington D.C.

2. GBA Poverty Agglomerates’ Total Poverty GBA Indigents Agglomerates’ total Indigents 70,0 60,0 47,3 50,0 40,0 38,5 32,8 35,4 31,9 30,6 33,7 30,1 29,5 32,3 28,7 30,0 28,9 27,9 26,7 21,5 25,9 26,0 20,6 24,8 19,1 19,0 17,8 17,7 20,0 16,8 16,5 14,9 13,8 12,7 9,6 9,3 10,7 12,2 8,5 8,3 8,3 7,9 7,6 10,0 6,6 6,2 5,0 4,7 5,4 4,4 3,0 3,5 3,6 3,2 3,5 7,7 7,5 1,8 6,9 6,7 6,4 6,3 2,1 0,0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 2001 2002 1974 1980 1983 1984 1985 1986 1987 1998 1999 2000 Evolution of the poor and indigent population In population percentage Total urban agglomerates and Gran Buenos AiresOctober 1974 – October 2002 57,7 54,3 En porcentajes 27,7 24,7 Fuente: SIEMPRO, elaboración propia en base a EPH - INDEC Source: SIEMPRO, own elaboration on the basis of the EPH - INDEC

3. GBA - Poverty Total Urban - Poverty GBA - Indigence Total urban - Indigence 60,0 50,0 40,0 30,0 20,0 10,0 0,0 Oct 91 Oct 92 Oct 93 Oct 94 Oct 95 Oct 96 Oct 97 Oct 98 Oct 99 Oct 74 Oct 80 Oct 83 Oct 84 Oct 85 Oct 86 Oct 87 Oct 88 Oct 89 Oct 90 Oct 00 Oct 01 Oct 02 May 91 May 92 May 93 May 94 May 95 May 96 May 97 May 98 May 99 May 00 May 03 May 88 May 89 May 90 May 01 May 02 1°Sem03 2°Sem03 1°Sem 04 Total urban agglomerates and Gran Buenos AiresOctober 1974 – 1er semester 2004 Evolution of the poor and indigent population In population percentages 54,7 51,7 44,3 42,7 In percentages 26,3 25,5 17,0 15,2 Source: SIEMPRO, own elaboration on the basis of the EPH - INDEC

4. Unemployment Rate Subemployment Rate 22,0 20,0 20,4 17,7 18,0 16,6 16,3 15,7 16,0 16,3 14,0 14,5 14,4 12,0 10,0 1er quarter 03 2do quarter 03 3er quarter 03 4to quarter 03 1er quarter 04 2do quarter 04 Unemployment and subemployment RatesIn % Total urban agglomerates1er quarter 2003 - 2do quarter 2004 17,8 17,8 15,2 14,8 Source: SIEMPRO, own elaboration on the basis of theEPH, INDEC.

5. Institucionality of the Social Policy in Argentina In the ´90, there have been created more than 70 programs to fight the poverty, depending on 7 different national ministries. Consequences Intercrossing and inefficiency of the programs. Institutional fragmentation and low management capacity. Low impact on the fight against poverty.

6. Intents of constituting a Social Authority • Social Federal Cabinet(1993) • Social Cabinet 1997 within the National Coordination Unit of Social Policies and Planes, Social Expense Evaluation Commission (1999) • Social Development and Environment Ministry 1999 (Ministry Range) (1999) • Social Development Federal Council (1999) • Social Policy Coordination Council (2002)

7. Social Policies Federal Network (2003-2004) MAIN AXES Human Development and Family Food Security Local Development and Social Economy “THE MOST URGENT EL HUNGER” NATIONAL PLAN “FAMILIES” NATIONAL PLAN “BEAR A HAND!” NATIONAL PLAN

8. National Plan of Food Emergency“The most urgent Hunger” Objective • To make possible the access to an adequate and enough feeding to the vulnerable population, according to the particularities and customs of each region of the country Lending • Assistance to scholar and communitarian soup-kitchens • Delivery of feeding modules and fortified milk • Tickets (exchange system in attached commerce) • Training on feeding production (familiar and communitarian kitchen gardens, and brood of animals) • Education in familiar nourishment Components • Feeding Assistance to families in risk • Direct Feeding Assistance in special cases • Assistance to scholar, infantile and communitarian soup-kitchens • Assistance to familiar , scholar and communitarian kitchen gardens • Assistance to familiar and communitarian Farms • Assistance to pregnant women and to the healthy Child • Technical Assistance and Training • Equipment to Effectors • Monitoring and y Evaluation

9. Results obtained from the 2003-2004 Administration“The most urgent hunger” Plan

10. Local Development and Social Economy National Plan : “Bear a hand” Objetives • To contribute to the improvement of income of the population in social vulnerability situation in the whole country. • To promote the social or solidarity economy sector, by means of the technical and financial support to productive enterprises of social inclusion, generated in the frame of local development processes. • To strengthen public and private organizations, as well as associative spaces and networks to improve the local development processes and to increase the social capital in the local level, and to generate greater capacities and options to the people, promoting the decentralization with the local actors’ participation.

11. Local Development and Social Economy National Plan : “Bear a hand” Economical-Financial Support • Destined to personal, familiar, associative, communitarian or commercial productive enterprises, in a direct form or through financial units Institutional Strengthening • By means of training and technical assistance activities, destined to local agreement, Local and Provincial Advisors Councils, governmental organizations Technical Assistance and Training • To the formulation and execution of productive projects, promoting the sustainability of the enterprises.

12. Local Development and Social Economy National Plan : “Bear a hand” Young People Inclusion Program • To improve the income of the families with young people from 18 to 25 years old, by means of their participation in socio-productive activities. • To develop the productive capacities of the young people and to favor the creation of productive enterprises, promoting the learning of crafts and the formation of associative young groups to the production and commercialization of goods and services • To strengthen the institutional spaces of the provincial and municipal governments, and of the civil society, which aim their actions to improve the life quality of the young population. Objectives

13. Local Development and Social Economy National Plan : “Bear a hand” National Register of Effectors of Local Development and Social Economy Objectives • To facilitate the formality of the economic activities, which are outside the formal economy, by the creation of the tributary figure of the Effector of Local Development and Social Economy. Benefices • Incorporation to the Social Monotribute Regime with two years free. • Invoicing System to favor the commercialization opportunities with the private sector and public organisms. • Access to a medical coverage, with the same lendings that receives the other affiliated monotributists, in whichever Unions’ Social Assistance • Belonging to the pension system during the period in which stay in the Effectors’ Register.

14. Massiveness: 27.350 producer units financed 160 credit and micro-credit banks 342. 840 small producers benefited 10% of the strategic productive projects Territorial Impact: 600 municipalities performing local development plans Private sector participation in the definition of the municipal agendas of local development Results obtained in the 2003-2004 Administration“Bear a hand Plan” • Sustainability • 45% of the programs pre-existent to the Plan Strengthening of the Civil Society and the institutional spaces of agreement • 300 workshops with a total amount of 42.000 NGOs’ members and advisors councils.

15. Families National Plan Objectives • To give economical support to the families with children in social vulnerability condition. • To assure the scholar attendance and the health care of the children of the family. Benefices: • Granting of an income up to $ 200 (U$S 67) to 750,000 householder heads, according to the number of children. • Incorporation of a tutor ( 1 every 50 people) • National State and Provinces Monitoring. Payment Card • Benefice collection by cash dispensers. • Use of the card as a purchasing card (automatic debit) • Restitution of the consumption tax (15%) of every purchase made by the card (automatic debit)