The egg or the chicken?

Citizens generally ask for and even demand massive social spending without much thought about its implications, says Ocliver A. Rojas Gómez in his blog on the Fuerza Verde web site.

Friday, July 25, 2008

The market can't carry out all economic functions, he says, and so some of the responsibility has to be lodged with the State as a provider of social services.
Still, the State should do so keeping in mind the basic concepts of efficiency and equality in terms of access to opportunity.
Trying to resolve economic differences can become a means of improving distributive justice and that implies a better quality of life, especially among low-income groups - if public policy can encourage the social investment without generating market failures.

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The institution highlights the progress that has been made in reducing the fiscal deficit and stabilizing the debt, but warns that a greater effort is needed to place the debt on a downward trajectory.

From a statement issued by the International Monetary Fund:

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