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Evelyne Huber and Zoila Ponce de León

Latin American welfare states have undergone major changes over the past half century. As of 1980, there were only a handful of countries (Argentina, Brazil, Chile, Costa Rica, and Uruguay) with social policy regimes that covered more than half of their population with some kind of safety net to insure adequate care during their old age and that provided adequate healthcare services. With few exceptions, access to social protection and to healthcare in these countries and others was based on formal employment and contributions from employees and employers. There were very few programs, and those few were poorly funded, for those without formal sector jobs and their dependents. The debt crisis and the ensuing neoliberal reforms then damaged the welfare state in all countries, including these leading nations. Deindustrialization, shrinking of the public sector, and cuts in public expenditures reduced both coverage and quality of transfers and services. Poverty and inequality rose, and the welfare state did little to ameliorate these trends. With the turn of the century, the economic and political situation changed significantly. The commodity boom eased fiscal pressures and made resources available for an increase in public social expenditure. Democracy was more consolidated in the region and civil society had recovered from repression. Left-wing parties began to win elections and take advantage of the fiscal room which allowed for the building of redistributive social programs. The most significant innovation has been expansion of coverage to people in the informal sector and to people with insufficient histories of contributions to social insurance schemes. The overwhelming majority of Latin Americans now have the right to some kind of cash assistance at some point in their lives and to healthcare provided by their governments. In many cases, there have also been real improvements in the generosity of cash assistance, particularly in the case of non-contributory pensions, and in the quality of healthcare services. However, the least progress has been made toward equity. With very few exceptions, new non-contributory programs were added to the traditional contributory ones; severe inequalities continue to exist in the quality of services provided through the new and the traditional programs.


Sophie Vanhoonacker

The Treaty of Amsterdam was the result of the 1996–1997 Intergovernmental Conference (IGC) among the then 15 EU member states (March 1996–June 1998). Its three core objectives were making Europe more relevant to its citizens, enabling it to work better and preparing it for enlargement, and giving it greater capacity for external action. It was the first IGC since the enlargement with Austria, Finland, and Sweden, who had joined the European Union (EU) in 1995. The negotiations took place in the aftermath of the collapse of the communist regimes in Central and Eastern Europe, opening the prospect of an eastern enlargement. Shortly before the start of the IGC, the Madrid European Council (December 1995) had confirmed that the decisions on launching the accession negotiations would be taken within six months of the conclusion of the IGC. The Treaty was not the critical juncture in European-integration history, which the previous Maastricht Treaty had been. The 1996–1997 IGC tried to complete some of the unfinished work of its predecessor. This included the further extension of qualified majority voting (QMV) and codecision, the shaping of a European security policy and making further progress in dossiers such as energy, civil protection, and the hierarchy of norms. Still it would be erroneous simply to downplay the Treaty as a mere “leftover” text. Under the leadership of the successive Italian, Irish, and Dutch presidencies, the heads of state or government reached an agreement on an employment chapter, a strengthening of social policy, the creation of the position of a high representative for the Common Foreign and Security Policy (CFSP), a partial communitarization of cooperation in the field of Justice and Home Affairs (JHA), provisions on flexible integration and the integration of Schengen into the Treaty. Highly sensitive issues such as the reweighting of the Council voting system and the size of the European Commission were postponed to the next IGC. After a relatively smooth ratification process, which raised little public attention, the Treaty of Amsterdam entered into force on May1, 1999.