1.
INEQUALITY
PUBLIC FINANCES
TRUST IN GOVERNMENT
LAC countries made significant improvements in public
welfare in the past two decades, but these achievements
are at stake…
Public spending choices in LAC countries may not enhance
inclusive growth
LAC countries spend proportionately less than OECD countries on social benefits, such as pensions and
conditional cash transfers (10.2% of GDP compared to 16.5% in the OECD countries in 2017), and more on
grants and other expenses, such as capital and current transfers to other actors of the economy (3.4% in
the region compared to 2.4% in the OECD).
See more:
Chapter 2 –Public Finances and Economics
The economic and fiscal outlooks in LAC countries have
deteriorated due to sluggish economic growth
More LAC countries are advancing in adopting a
medium-term perspective in their budgetary process
Trust in government has declined in the majority of LAC
countries
Confidence in national government in 2018 and its change since 2007
Index Quality of Regulations against Undue Influence, 2018
OURData Index, 2019
General government fiscal balance as a percentage of GDP, 2007 and 2018
Use of a medium-term perspective in the budget process, 2018 Gender equality in public sector employment 2018
Government expenditures by economic transaction as a percentage of GDP, 2017
Gini coefficient post-taxes and transfers, 2000, 2007 and 2014
Government at a Glance: Latin America and the Caribbean 2020
analyses the workings of governments in the LAC region and
the public governance challenges they face.
This report provides data to help Latin American and Caribbean
countries in their efforts to tackle pressing problems such as
persistently high inequality, deteriorating public finances, and
low public trust. The results show both where progress has
been made and the challenges that remain, and point to some
possible avenues for further public sector reforms.
LAC countries reported an average deficit of 4.3% of GDP in 2018, compared to 0.9% in 2007.
See more:
Chapter 2 – Public Finances and Economics
Chapter 5 – Budgeting Practices and Procedures
0.74 0.71 0.69 0.67
0.60 0.59 0.58
0.41
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
BRA PAN URY CHL BHS PER GTM PRY
2018 LAC (2018) OECD (2018)
LAC countries are progressing in linking the budgetary process to broad fiscal policy goals, beyond the annual
budgetary cycle (as shown by the indicator on Use of a Medium-Term Perspective, where LAC countries
obtained a score of 0.63 out of 1.00, where a high score means a robust MTEF). Medium-term planning
contributes to foresee the general direction of policy, enhance fiscal discipline and increases the
predictability of financial flows.
See more:
Chapter 5 – Budgeting Practices and Procedures
Income inequality can have a negative impact on economic growth and generate social unrest due to
disparities in access to economic opportunities and basic services, such as education and health care.
In LAC countries for which data are available, income inequality was lower in 2017 or the latest
available year compared to 2007. However, income inequality is higher in all LAC than on average in
the five most unequal OECD countries (which have an average Gini of 0.38).
See more:
Chapter 11- Core Government Results
0
5
10
15
20
25
30
35
BRA COL HND CHL PRY SLV MEX PER LAC OECD
Property income (incl. interest) Social Benefits
Grants + Other expenses (current and capital) Investments (gross)
%
Continue advancing towards gender parity in senior
positions and improving institutional capacity would
enhance the efficacy of public policies
Overall, women represent 51% of the public sector workforce in LAC in 2018. However, in 2019 only
27.4% of ministers in the region were women. Eight of the twelve surveyed LAC countries have
mechanisms for merit-based recruitment in the civil service. Yet, a significant proportion of
nonpermanent staff in the public service workforce is not subject to such procedures.
See more:
Chapter 6. Human resources management
As of 2018, 34% of the population in the LAC region reported having trust in government, 4
percentage points lower than in 2007.
See more:
Chapter 11- Core Government Results
LAC countries are adopting regulations to restrict undue
influence in policymaking
The Index of Quality of Regulations against Undue Influence measures the existence and reach of
lobbying regulations, enforcing transparency of influence seeking and the regulation on conflicts of
interest. The regional average for 2018 is 4.08 out of a maximum of 9 points.
See more:
Chapter 9 – Public Sector Integrity
Many LAC countries have policies to proactively disclose
government data, but lag in their implementation
The OECD OURdata Index measures government data availability, accessibility and government support for
its re-use. On average, LAC countries scored 0.43 compared to an OECD average of 0.60 in 2018. Data
accessibility is the component where LAC countries score highest, while there is room to improve the policy
frameworks that regulate data availability and the support to its re-use by stakeholders from civil society.
See more:
Chapter 8 – Open Government Data
-10
-5
0
5
10
2018 2007
0.20
0.25
0.30
0.35
0.40
0.45
0.50
0.55
PRY PAN CRI BRA CHL MEX BOL DOM ECU PER URY OECD 5
most
unequal
OECD
2017 or latest available year 2007
0
10
20
30
40
50
60
70 % of women
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
% in 2018 Percentage points since 2007
0.00
0.04
0.16
0.28 0.29
0.37
0.41
0.46 0.46
0.52 0.53 0.54
0.62 0.63
0.71
0.88
0.43
0.60
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Government support for data re-use Data accessibility Data availability
7.50 7.40
7.00
6.35
4.60
4.08
3.40 3.40 3.25
1.00 1.00
0.00
0
1
2
3
4
5
6
7
8
9
ARG CHL MEX PER COL LAC CRI URY BRA ECU GTM PRY
Lobbying regulation Transparency of influence seeking Conflict of interest regulation