ScienceBlogs
Home

Income inequality in the Argentine provinces

1
1
Income inequality in the Argentine provinces
Buenos Aires - © Unsplash Andrea Leopardi

In Latin America, 55% of national income is captured by the top 10% of the population,1 making it one of the most unequal regions in the world.

Inequality is an issue with negative consequences not only for low-income sectors, but for the population as a whole.2 These consequences include an increase in violence rates,3 lower levels of economic growth,4 deterioration of the quality of democracy5 as well as overall health indicators.6

During the 2000s, Latin American countries experienced a sustained decline in inequality levels. However, this decline was not evenly distributed across countries, let alone across different regions within each country.7 Argentina, as a federal country, is relevant for the study of inequality because of its high degree of subnational decentralization – a system by which provincial governments possess resources through which they can decisively influence the implementation of national policies8 – and the presence of institutional and cultural factors common to all provinces that can be used as control variables in a comparative study. In addition, there is great variation in levels of subnational income inequality between and within provinces over time.9 Between 2000 and 2018, Argentina decreased its Gini coefficient from 0.4916 to 0.4685. However, during the same period, the Argentine province of Misiones reduced its Gini index almost 8 times more than the province of Córdoba; while in La Rioja the Gini index fell by 19%, in Catamarca the decline was 12.4%; Corrientes remained one of the most unequal provinces between 2003 and 2018, but Chaco went from being the sixth most unequal province to being among the 11 least unequal provinces towards the end of the series. To put it differently, while some provincial states (such as Tierra del Fuego or Río Negro) have a Gini index similar to Australia, others (La Pampa or Salta) resemble Liberia.10

What explains income inequality variations between subnational units of the same country? Answering this question requires us to delve into theories that incorporate subnational level factors which are omitted by theories developed to understand national level phenomena.11

The literature on subnational income inequality variations has primarily focused on demographic, structural, fiscal, public policy and political-institutional factors. There is some agreement that inequality decreases with population growth, urbanization levels, the share of people employed by the industrial and public sectors, electoral competition, the amount of federal transfers, social spending and voting turnout. On the other hand, inequality increases at higher levels of unemployment, poverty, agricultural employment, land tenure concentration, fiscal deficit and the early formation of subnational states.12 Moreover, political factors that have a “regressive” impact, (deepening inequality), have been studied mainly in literature on oligarchy, elites, alliances and state capture.13

However, as Del Tredici (2022) noted, social factors and civil society in general, have received particularly less academic attention by the literature on subnational income inequality variations. Following Evans and Heller (2015) we can define civil society as “the full range of voluntary associations and movements that operate outside the market, the state, and primary affiliations and that specifically orient themselves to shaping the public sphere”.14 Through her research on civil society and income inequality in the Argentine provinces, Del Tredici makes two fundamental contributions. Firstly, she shows that a stronger civil society can lead to more informed, progressive and efficient redistributive policies that are more likely to reduce income inequality, even at similar levels of public spending.15 Secondly, she sheds light on non-confrontational mechanisms through which civil society can have an influence on redistribution, something that so far, had not been considered by the literature that studies civil society’s effects through protests.16

It is clear that civil society matters. But what we still don’t know precisely is who and how. Civil society comprises a huge range of actors, including “(....) social movements, unions, advocacy groups, and autonomous non-governmental organizations (NGOs) and community-based organizations (CBOs)”.17 Do all of them have the same interests? Do they interact the same way with subnational states? Although a distinction has been made between “inward” and “outward” oriented civil society organizations18 - the latter associated with greater inequality reduction19 -, it is unclear how to classify them and the different ways in which they are organized or to do the like with their strategies for linking with subnational governments.

Furthermore, this literature often assumes that civil society is an external actor which affects redistribution outside of state institutions. However, can civil society’s actors also wield influence over public policy outcomes from within state institutions?.20 To presume a rigid divide between the state and civil society may overlook other mechanisms through which civil society can impact redistribution. The relations between the state and civil society are mutually constitutive21 and studies on the institutionalization of civil society have revealed that its organizations can actively engage in processes of interaction—against, through, and within the state—without necessarily losing their autonomy.22

Throughout my doctoral thesis my purpose is to make a contribution to the literature on determinants of inequality by focusing on one civil society actor with strong redistributive pressures that has not been studied so far: social movements. How social movements interact with the state can be relevant for studying subnational inequality in Latin American countries for two reasons. In this region, the increase in inequality in the 1990s and its subsequent decline coincides with the emergence of a plurality of social movements23 and the expansion of discretionary social policies that were channeled through social movement organizations.24 Moreover, during the 2000s, social movements were incorporated in the socio-political arena and even contributed to the Argentine governing coalitions and were granted official positions in the state structure.25

Three main aspects of social movement literature can be highlighted. Firstly, there are many approaches to the concept of social movements, but there is an agreement on their basic characteristics, defining them as “informal networks of conflict-oriented interactions composed of individuals, groups, and/or organizations that, based on shared solidarities, are provided with a collective political identity and use protest as a means–among others–to present themselves in the public arena”.26 Nonetheless, we still lack a conceptualization that can be used to clearly distinguish social movements from other actors and to observe them empirically in a comparative study. Secondly, social movements’ emergence has been far more developed than their outcomes and, particularly, their relation to income while inequality still remains unexplored. Finally, social movements are mainly studied at the national level, without focusing on their subnational level interactions.

Many contributions can be made to this field of studies. Understanding the intricate relationships between social movements and income inequality can lead to more effective policies aimed at reducing disparities and promoting greater social and economic equity within and between Argentine provinces as well as subnational units of other federal states.

1:Chancel, L., Piketty, T., Saez, E., Zucman, G. et al. World Inequality Report 2022, World Inequality Lab wir2022.wid.world.
2: Peterson, E. Wesley F. 2017. “Is Economic Inequality Really a Problem? A Review of the Arguments,” in Faculty Publications: Agricultural Economics 170. https://digitalcommons.unl.edu/ageconfacpub/170.
3: Arjona, Ana. 2021. The Effects of Violence on Inequality in Latin America and the Caribbean:a Research Agenda. Background Paper for the United Nations Development Programme 2021 UNDP LAC Working Paper No. 12. Background Paper for the UNDP LAC Regional Human Development Report 2021.
4: Evans, Peter, and Patrick Heller. 2015. “Human Development, State Transformation, and the Politics of the Developmental State,” in Stephan Leibfried, and others (eds), The Oxford Handbook of Transformations of the State (online edn, Oxford Academic, 10 Sept. 2015), https://doi.org/10.1093/oxfordhb/9780199691586.013.37.
5: Hacker, Jacob S., and Paul Pierson. 2010. Winner-Take-All Politics: How Washington Made the Rich Richer-and Turned Its Back On The Middle Class. Simon and Schuster.
6: Martínez-Zelaya, Gonzalo, Martner, González, Páez, Darío y Bilbao, María de los Ángeles. 2016. “Desigualdad económica y bienestar: relaciones entre los índices de Gini, Palma, los niveles del bienestar medio de las naciones y los factores explicativos de la relación entre desigualdad y felicidad”. In La felicidad de los chilenos,Vol II, edited by A. Mendiburo, J.C. Oyanedel & D. Páez. Santiago de Chile: Eds. Ril.
7: González, Lucas I. and Nazareno, Marcelo. 2022. “Resisting Equality: Subnational State Capture and The Unequal Distribution of Inequality”. Comparative Politics, Volume 54, Number 2, January 2022, pp. 303-325(23). City University of New York. DOI:10.5129/001041522X16185909705013; López-Calva, Luis F., and Lustig, Nora. 2010. “Explaining the Decline in Inequality in Latin America: Technological Change, Educational Upgrading, and Democracy”. In Declining Inequality in Latin America. A decade of progress?, edited by Luis F. López Calva and Nora Lustig, 1-24. Washington D.C.: Brookings Institution Press.
8: González, Lucas I. y Nazareno, Marcelo. 2019. “La desigual distribución de la desigualdad. Política subnacional y distribución del ingreso en las provincias argentinas, 2003-2011”. Revista SAAP, Vol. 13, No 1: 43-76. (ISSN 1666-7883).
9: González, Lucas I. and Nazareno, Marcelo. 2022.
10: World Inequality Database.
11: Giraudy, Agustina, Eduardo Moncada, and Richard Snyder. 2019. “Subnational Research in Comparative Politics: Substantive, Theoretical, and Methodological Contributions.” Chapter. In Inside Countries: Subnational Research in Comparative Politics, edited by Agustina Giraudy, Eduardo Moncada, and Richard Snyder, 2–54. Cambridge: Cambridge University Press, 2019. doi:10.1017/9781108678384.001.
12: Del Tredici, Romina Paola. 2022. “Haciendo que la redistribución funcione: sociedad civil y desigualdad subnacional en Argentina”. Doctoral Thesis. Submitted to the Faculty of Political Science and International Relations of the Catholic University of Cordoba. As part of the requirements for the PhD studies in Politics and Government. November 2022.
13: See Hacker and Pierson (2010), González and Nazareno (2022), Page, Bartels and Seawright (2013) Democracy and the Policy Preferences of Wealthy Americans, Winters (2011) Oligarchy.
14: Evans, Peter, and Patrick Heller. 2015. p. 696.
15: Del Tredici, Romina Paola. 2022.
16: Calvo, Ernesto and Lorena Moscovich. 2017. “Inequality, Protests, and the Progressive Allocation of Cash Transfers in the Argentine Provinces.” Latin American Politics and Society 59, no. 2 (2017): 3–26. http://www.jstor.org/stable/44684248.
17: Evans, Peter, and Patrick Heller. 2015. p. 696.
18: See Del Tredici. 2022. p. 94-95. “Inward-oriented” organizations include affinity organizations: unions, professional associations, and social clubs, among others. Its work objective is mainly to achieve benefits for its own members. They are more vertical and homogeneous than “outward-oriented” organizations. In contrast, “outward-oriented” organizations are characterized by being more heterogeneous, horizontal, diverse and linking different people in socioeconomic terms, allowing greater circulation of information. Within them we can find grassroots or support organizations. Generally, its objective is to help people in vulnerable situations.
19: Del Tredici. 2022.
20: Abers, Rebecca. 2018. “Prefacio”. Chapter in Movimentos sociais e institucionalização: políticas sociais, raça e gênero no Brasil pós-transição editado por Adrian Gurza Lavalle, Euzeneia Carlos, Monika Dowbor y José Szwako. Rio de Janeiro: EDUERJ, 2018, 411 p. Sociedade e política collection. ISBN: 978-85-7511-479-7. https://doi.org/10.7476/9788575114797.
21: Lavalle, Adrian Gurza; Carlos, Euzeneia; Dowbor, Monika y Szwako, José . 2018. “Movimentos sociais, institucionalização e domínios de agência”. Capítulo en Movimentos sociais e institucionalização: políticas sociais, raça e gênero no Brasil pós-transição editado por Adrian Gurza Lavalle, Euzeneia Carlos, Monika Dowbor y José Szwako. Rio de Janeiro: EDUERJ, 2018, 411 p. Sociedade e política collection. ISBN: 978-85-7511-479-7. https://doi.org/10.7476/9788575114797.
22: Lavalle, Adrian Gurza, and Szwako, José. 2023. “Social Movements and Modes of Institutionalization”, in The Oxford Handbook of Latin American Social Movements, edited by Federico M. Rossi. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780190870362.013.38.
23: Rossi, Federico M. 2023.
24: Garay, Candelaria, Palmer-Rubin, Brian, Poertner, Mathias. 2020. “Organizational and partisan brokerage of social benefits: Social policy linkages in Mexico”. World Development, Volume 136, 2020, 105103, ISSN 0305-750X, https://doi.org/10.1016/j.worlddev.2020.105103; Leiras, Marcelo. 2007. “La incidencia de las organizaciones de la sociedad civil en las políticas públicas”. In La incidencia política de la sociedad civil, edited by Carlos H. Acuña y Ariana Vacchieri (comps.). Siglo XXI, Buenos Aires, 2007, pp. 17-66.
25: Rossi, Federico M. 2017. The Poor's Struggle for Political Incorporation: The Piquetero Movement in Argentina (Cambridge Studies in Contentious Politics). Cambridge: Cambridge University Press. doi:10.1017/9781316273180.
26: Rossi, Federico M. 2023. “Social Movements and Capitalist Models of Development in Latin America,” in Federico M. Rossi (ed.), The Oxford Handbook of Latin American Social Movements (2023; online edn, Oxford Academic, 22 May 2023), https://doi.org/10.1093/oxfordhb/9780190870362.013.46. p.21.
Nayet Kademián

Nayet Kademián

Nayet Kademián is a PhD student in Political Science at the National University of San Martin. She is also a doctoral scholar at the National Agency for the Promotion of Science and Technology, Argentina.
Her primary areas of research are income inequality, redistribution and social movements in federal countries. She is part of the LoGov research project and was a secondee at the Institute of Politics and Public Law, Ludwig-Maximilians-Universität Munich (Germany). Her twitter is @nayetkademian.

Tags

Citation

https://doi.org/10.57708/bdwivmr_kqlyhasibk8jgsg
Nayet Kademián. Income inequality in the Argentine provinces. https://doi.org/10.57708/BDWIVMR_KQLYHASIBK8JGSG
altalt

This blog is part of the LoGov project. The project has received funding from the European Union's Horizon 2020 research and innovation programme under Grant Agreement No 823961.

Related Post

Environmental Conflicts – policies without means? Studying a local environmental conflict near Nantes, France
ScienceBlogs
eureka

Environmental Conflicts – policies without means? Studying a local environmental conflict near Nantes, France

Verena RichardierVerena Richardier
Citizens’ Juries: A Democratic Courtroom for Informed Decision-Making
ScienceBlogs
eureka

Citizens’ Juries: A Democratic Courtroom for Informed Decision-Making

Martina TrettelMartina Trettel
Biking in Bolzano/Bozen, Italy versus London, Ontario
ScienceBlogs
eureka

Biking in Bolzano/Bozen, Italy versus London, Ontario

Amanda GutzkeAmanda Gutzke