Prioritizing Expenditures for a Recovery for All: A Rapid Review of Public Expenditures in 126 Developing Countries

UNICEF Social and Economic Working Paper

56 Pages Posted: 23 Jan 2011

See all articles by Isabel Ortiz

Isabel Ortiz

United Nations - International Labour Organization (ILO); Initiative for Policy Dialogue

Jingqing Chai

UNICEF

Matthew Cummins

UNICEF

Gabriel Vergara

affiliation not provided to SSRN

Date Written: October 12, 2010

Abstract

This paper (1) examines the extent to which expenditure consolidation is occurring in 2010-11 among 126 low and middle income countries by compiling and analyzing projected fiscal trends using IMF data; (2) assesses the risks of contracting social spending, and presents common adjustment measures, such as phasing out subsidies, cutting/capping wage bills, and targeting meager social protection schemes; (3) identifies potential financing options for greater pro-poor spending and (4) raises questions for developing countries to consider regarding the timing, composition and scope of expenditure adjustments in the near term. The paper calls for policymakers to evaluate the potential human and development costs of foregone social expenditures and to consider alternative policy measures to ensure a “Recovery for All.”

Keywords: Fiscal Consolidation, Public Expenditures, Social Spending, Crisis Recovery, Poverty, Wage Bill, Food Subsidies, Social Protection

JEL Classification: H5, H12, O23, H5, I3, J3

Suggested Citation

Ortiz, Isabel and Chai, Jingqing and Cummins, Matthew and Vergara, Gabriel, Prioritizing Expenditures for a Recovery for All: A Rapid Review of Public Expenditures in 126 Developing Countries (October 12, 2010). UNICEF Social and Economic Working Paper. Available at SSRN: https://ssrn.com/abstract=1745469 or http://dx.doi.org/10.2139/ssrn.1745469

Isabel Ortiz (Contact Author)

United Nations - International Labour Organization (ILO) ( email )

ILO HQ, Route des Morillons 4
Geneva, 1211
Switzerland
+41227996226 (Phone)

HOME PAGE: http://www.ilo.org/

Initiative for Policy Dialogue ( email )

Columbia University
New York, NY
United States

HOME PAGE: http://policydialogue.org/programs/taskforces/global_social_justice/

Jingqing Chai

UNICEF ( email )

P. O. Box 4884
New York, NY
United States

Matthew Cummins

UNICEF ( email )

PO Box 44145
Nairobi, Nairobi 00100
Kenya

Gabriel Vergara

affiliation not provided to SSRN ( email )

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