Public Policies and Regional Inequalities in the Income Distribution in Argentina

Abstract

The analysis of the indicators of income, inequality and poverty in each of the 32 urban centers shows the huge regional disparities of Argentina. In the Northern Zone of the country per capita income is 35% lower than the national average, poverty is four times that of the federal capital and there is more inequality in income distribution. Available statistical information indicates that economic growth and public policies that have been implemented in the last years have reduced the aggregate levels of poverty, but have had little impact in the poorest regions of the country. On the other hand, the redistributive impact in Argentina of public policies and programs is small when compared with what happens in more developed countries. The design and implementation of new policies to reduce poverty that are focused on the specific problems and difficulties of the poorest regions of the country are needed. Among them, emphasis must be given to policies to reduce the high level of informal employment in these regions. Besides that, these new policies must transfer responsibilities and reward the self efforts of local governments, replacing the present “culture of dependence” on the programs of the central government by institutional development at the local level, that emphasizes efficient management by provincial public administrations and the development of local social capital.