Juliana Martínez and I have just published a brief on the Comparative Research Program on Poverty (www.crop.org). You can find it here. Based on our research on Costa Rica, we argue that building complementarities between the welfare regime and the economic regime in developing countries is very complicated. Structural heterogeneity (sharp differences between low productivity and high productivity sectors) means that it is hard to generate enough revenues to support social policy and, at the same time, a high demand for education spending. It is a first attempt to understand these complementarities, which are probably at the heart of our future research and policy agenda in Latin America.
Comments most welcome!