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.

More on this topic

El Salvador As Seen by the IMF in March 2018

March 2018

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:

The IMF staff team visited San Salvador during February 5—16 for the 2018 Article IV consultation [1] and held productive discussions with the Salvadoran authorities, parliamentarians, business community, and social partners. The consultation was based on revised National Accounts statistics.

Fiscal Adjustment is Essential in Costa Rica

February 2015

The constant increase in Costa Rica's public debt seems unstoppable, which could generate "a sudden change in investor confidence" and force "a messy macroeconomic adjustment".

Even if in the coming months they manage to secure parliamentary approval for tax measures currently requested by the government, public debt will continue to increase and in 2019 will represent over 50% of GDP.

El Salvador: Complaints Over Fiscal Discipline

May 2012

The governments cash-strapped position is reflected by delays in payments, while it increases short-term public debt and the IMF has suspended the precautionary agreement.

"Public debt in El Salvador between March 2011 and March 2012 increased by $450 million (+4.3%) to $13,232,000.

El Salvador: $ 818 Million in Social Programs

January 2011

The government announced a record investment in 2011, 3.76% percent of its gross domestic product (GDP).

The chief of staff, Alex Segovia, said in a press conference that plans are to invest in 2012 $173.5 million in social security and $644.5 million in infrastructure projects, totaling $ 818 million.

 close (x)

Receive more news about Economics

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Gluten-free food business for sale

Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet...

Government Procurement
Opportunities in the region
--

bid deadline

Apr 21
Apr 21
Apr 21
Apr 21
Apr 21
Apr 21
Apr 21

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Apr 23)
Brent Crude Oil
73.18
Coffee "C"
117.70
Gold
1,332
Silver
17.060