129 lac 7 countries include argentina brazil chile

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Unformatted text preview: 57 21,009 (246,251) 129,022 108,647 42,061 108,765 50,425 121,898 45,553 11,103 531,555 (1,859) (62,270) 591 (78,733) (92,764) (114,572) 11,544 (3,055) (29,623) (19,534) (46,332) 0 (436,607) Self-employed 77 (59,752) (852) (107,208) (113,050) (185,711) (5,445) (19,909) (42,864) (11,119) (41,115) 0 (586,948) Non-paid (14,713) (122,918) 224 (28,247) (100) (83,832) (12,454) 3,533 10,531 (6,854) (4,719) 1,562 (257,987) Total (19,329) (102,783) 20,972 (460,439) (76,892) (275,468) 35,706 89,334 (11,531) 84,391 (46,613) 12,665 (749,987) Table 4: Changes in household income per capita by region and initial family labor income quintile: Fourth quarter 2008 (year‐to‐year) (in nominal Mexican pesos) Region Northwest North Northeast Midwest Mideast South Eastern Yucatan 1 -13.7% -34.9% -39.4% -38.8% -20.9% -16.2% -32.0% -5.6% 2 -4.3% -7.4% -9.6% -6.4% -2.9% -3.7% 0.3% 2.3% Quintile 3 -2.8% -3.2% -6.0% -3.3% -0.8% -1.2% 1.9% 4.1% 96 4 -4.5% -1.7% -4.7% -2.6% 1.9% 0.1% 0.9% 2.0% 5 -6.8% -6.3% -5.6% 1.4% 0.4% -0.1% 2.5% -4.5% Total -5.6% -5.4% -6.6% -1.5% 0.0% -0.4% 1.5% -1.6% 5. HOW MUCH ROOM DOES LATIN AMERICA AND THECARIBBEAN HAVE FOR IMPLEMENTING COUNTER‐CYCLICAL FISCAL POLICIES?* Cesar Calderón and Pablo Fajnzylber April 2009** Abstract Latin America’s government debt has exhibited a clear downward trend since 2003. While this has been partly due to rapidly increasing commodity prices, more sustainable fiscal policies have also been a contributing factor. In effect, in a significant break with the past, cyclically adjusted government balances have risen (fallen) in response to increases (reductions) in debt levels. However, Latin governments have continued to under‐save in good times and therefore fiscal policy has remained pro‐ cyclical, thus weakening the ability to protect the poor and maintain infrastructure investments during bad times. Financing and institutional constraints to more counter‐cyclical fiscal policies still remain in most countries. They are lowest in Chile, followed by Brazil and Colombia, and highest in Ecuador and Venezuela. Looking forward, long‐term sustainability considerations cannot be ignored as decisions are made regarding the size, composition and targeting of fiscal stimulus packages. Financing and institutional barriers to counter‐cyclical fiscal policies remain Counter‐cyclical fiscal policies have recently been the focus of increasing attention by Latin American policy‐makers. As suggested by the stimulus packages recently announced by various G20 countries (Figure 1), such policies are being considered a potentially important tool for mitigating the negative impacts of the current global economic slowdown. In the case of LAC, both the size and the composition of the fiscal stimulus packages that have been announced vary considerably across countries. While some countries have focused predominantly on tax cuts (Brazil), others have planned to raise infrastructure spending (Mexico, Chile and Peru). Moreover, some countries are reinforcing their social protection networks (Argentina and Chile) whereas others are f...
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