During a decade of rapid growth, morejobs and higher wages dramatically reduced poverty and drovedown historically high levels of inequality. Governments inthe region complemented the gains from growth withinvestments in social protection policies, further reducingpoverty and inequality. Countries in Latin America and theCaribbean are rightfully proud of these achievements. As theregion prepares for a long period of slower growth andtighter budgets, the value of their investment in buildingsocial protection systems will grow. Social protection canhelp protect social gains as labor earnings and employmentfall. The evidence accumulated from the region’s experienceof which social protection interventions work and which donot, will be an essential resource to guide difficult policydecisions. Countries will move ahead with the long rundevelopment of their diverse social protection systems asthey are able. But in the shorter run three areas of policyaction will rise in priority: (i) protecting poor andvulnerable people through the lean years; (ii) findingfiscal savings in reforms to large and regressive items ofsocial policy; and (iii) fielding labor market initiativesto support workers during a long, slack period and preparethem for economic recovery.
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