Social costs of adjustment : the case of Latin America and the Caribbean

This paper examines the extent to which this was true in Latin America. It is concerned only with empirical results, and with evidence on changes in poverty, in social indicators (e.g., consumption expenditures, nutrition, and infant mortality), and in public expenditures, especially in the poverty-sensitive sectors (health and education). One chapter of the report also addresses the question of whether or not the poor have fared worse in countries undergoing structural adjustment programs. The paper concludes that the perception of worsening conditions is false, and that compared to the 1970"s, the 1980"s were characterized by increased calorie intake, less malnutrition, longer life expectancy, better vaccination rates, and less infant mortality. Moreover, in most countries access to primary education did not decline, though real public spending per pupil did fall. The report also disputes the view that structural adjustment has a disproportionate burden on the poor. In explaining how the misperception took hold, the report identifies biases and weaknesses in the research.