{"id":20345,"date":"2017-06-28T14:39:16","date_gmt":"2017-06-28T19:39:16","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=20345"},"modified":"2017-06-28T14:39:16","modified_gmt":"2017-06-28T19:39:16","slug":"best-social-expense-education-health","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/best-social-expense-education-health\/","title":{"rendered":"The Best Social Expense: Education and Health"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/06\/Health-and-education.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-20346\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/06\/Health-and-education.png\" alt=\"\" width=\"705\" height=\"350\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/06\/Health-and-education.png 705w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2017\/06\/Health-and-education-300x149.png 300w\" sizes=\"auto, (max-width: 705px) 100vw, 705px\" \/><\/a><\/p>\n<p>For every dollar invested in health and education, three need to be spent on direct social assistance in order to achieve the same effect on poverty reduction.<\/p>\n<p class=\"description\"><span dir=\"ltr\">The report\u00a0<em>&#8220;Impact of Public Expenditure on Poverty Reduction and Inequality&#8221;<\/em>\u00a0by the\u00a0<a class=\"hlink\" title=\"Nicaragua\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22Nicaragua%22\">Nicaragua<\/a>n Foundation for Economic and Social Development (FUNIDES) has similar conclusions to similar studies carried out in other countries: &#8220;In estimating the effect of public interventions on\u00a0<a class=\"hlink\" title=\"poverty\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22poverty%22\">poverty<\/a>\u00a0reduction, it was identified that poverty was reduced from 7.2 to 10.1 percent depending on the poverty line used (US $1.8, US $2 and US $2.6), mainly due to social spending in\u00a0<a class=\"hlink\" title=\"Health\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22Health%22\">health<\/a>and\u00a0<a class=\"hlink\" title=\"education\" href=\"http:\/\/www.centralamericadata.com\/en\/search?q1=content_en_le:%22education%22\">education<\/a>.<\/span>\u00a0<span dir=\"ltr\">On the other hand, the contribution made by electricity subsidies did not compensate for the reduction in incomes in households caused by payment of indirect taxes, therefore it did not affect poverty reduction.<\/span><\/p>\n<p><em><span dir=\"ltr\">&#8220;&#8230; it has been identified that the tax system increases poverty and does not achieve a significant decrease in inequality.<\/span>\u00a0<span dir=\"ltr\">Because a large part of the population density is around the poverty line and income in developing countries such as Nicaragua suffers from volatility, public intervention has a greater impact on poverty reduction than on reduction of vulnerability.<\/span>\u00a0<span dir=\"ltr\">This suggests that social programs alleviate poverty in the short term, but if the family fails to receive them it can fall into poverty in the medium term.&#8221;<\/span><br \/>\n<\/em><br \/>\n<em><span dir=\"ltr\">&#8220;&#8230;<\/span>\u00a0<span dir=\"ltr\">Social programs do not reduce vulnerability of falling into poverty, which means that if households stop receiving them, they can fall into poverty.\u00a0\u00a0<\/span><br \/>\n<span dir=\"ltr\">Therefore, boosting spending on health and education which has a significant impact on reducing levels of vulnerability of falling into poverty, can be a structural exit to it.<\/span>\u00a0<span dir=\"ltr\">It is hoped that investment in human capital will lead to better jobs in the future.&#8221;<\/span><\/em><\/p>\n<p><span dir=\"ltr\">See\u00a0full\u00a0<a href=\"http:\/\/www.centralamericadata.com\/docs\/FUNIDES_IncidenciaDelGastoPublico.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><u>report<\/u><\/a>\u00a0by Funides.\u00a0(In Spanish)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For every dollar invested in health and education, three need to be spent on direct social assistance in<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[10,12,247,241,39,248,34,33,62,42,219,11,249,243,7,246,244,44],"class_list":["post-20345","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-bocas-del-toro","tag-boquete","tag-boquete-boca-chica-real-estate","tag-boquete-real-estate","tag-buenaventura","tag-casco","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-estate-homes-in-panama","tag-move-to-panama","tag-offshore-real-estate","tag-panama-offshore-real-estate","tag-panama-papers","tag-panama-real-estate","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Best 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