The challenge of institutionalizing social inclusion: Latin American case

Abstract

Abstract: The purpose of this paper is to use selected literature that link economic and political institutions to development, in order to make an interpretation of the recent evolution of economic and social policies, results and challenges in Latin America. The economic evolution of the region in the last 10 years is characterized by good figures concerning macroeconomic and some social indicators, nevertheless the pattern of inequality remains as a huge challenge. The main argument is that institutions matter, not only in economic development but particularly in social development and to ameliorate the entrenched inequality in the region. To develop the subject the paper has two parts: the first is devoted to analyze, from the point of view of the Social Market Economy approach the contribution in the field of institutions and development of the recent literature on economic and political institutions. On the second part it elaborates briefly the approach, the context of implementation and the results of social policies in Latin America. Finally, on the conclusion, it connect the two parts to draw some lessons on the proposed topic.