Central America Social Expenditures and Institutional Review [electronic resource] : El Salvador.

By: World BankContributor(s): World BankMaterial type: TextTextSeries: Public Expenditure Review | World Bank e-LibraryPublication details: Washington, D.C. : The World Bank, 2015Subject(s): Access to Health Services | Adolescents | Child Development | Child Health | Child Mortality | Children | Communicable Diseases | Crime | Decision Making | Diabetes | Disadvantaged Groups | Discrimination | Drugs | Early Childhood | Education | Education For All | Educational Institutions & Facilities | Employment Opportunities | Food Security | Gross Domestic Product | Health | Health Outcomes | Health Policy | Health Policy and Management | Health, Nutrition and Population | Hospitals | Household Surveys | Human Capital | Human Development | Human Rights | Immunizations | Improving Labor Markets | Infant Mortality | International Comparisons | Knowledge | Maternal Mortality | Measles | Measurement | Migration | Mortality | Mortality Rate | Nutrition | Other Human Development | Population Density | Pregnancy | Prenatal Care | Prevention | Primary Education | Public Expenditure, Financial Management and Procurement | Public Health | Public Hospitals | Public Policy | Public Sector Governance | Purchasing Power | Purchasing Power Parity | Quality of Health Care | Reproductive Health | Rural Population | Sanitation | School Attendance | Secondary Education | Social Development | Social Protection and Risk Management | Social Protections & Assistance | Social Protections and Labor | Social Safety Nets | Teacher Salaries | Tertiary Education | Trauma | Unemployment | Universal Primary Education | Urban Areas | User Fees | Vaccines | Violence | Vulnerable Groups | Weight | Women | WorkersOnline resources: Click here to access online Abstract: El Salvador's development over the past decade has been dichotomous. On the one hand, economic growth has remained persistently low, employment and labor force participation have barely increased, and progress on poverty reduction has slowed. On the other hand, inequality has fallen, and shared prosperity improved together with advances in many social indicators, such as pre-primary enrollment rates, access to prenatal care, immunizations, and water and sanitation. The increase in the use of social spending, which now accounts for 12.4 percent of GDP, together with an improvement in the quality of social spending, explain at least part of this dichotomy of redistributive and social gains despite low growth, a tight fiscal situation and generally low government revenues and spending. Looking forward, the key challenges El Salvador faces are related to continuing improving the quality and efficiency in the social sectors, while maintaining the overall level of social spending within an increasingly constrained fiscal environment, where fiscal constraints, low revenues, and the need to cut the deficit by 3 percent of GDP are significant elements, as well. Priority will have to be given to reallocations and improvements within the spending envelope for the social sectors to maximize impact. This document analyzes social spending for El Salvador for the education, health and social protection and labor sectors in depth and explores a series of policy options for El Salvador to reallocate social spending for more effective impacts, to enhance and reform social policies and social service delivery, and to improve the management of public spending and budget execution in the social sectors.
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El Salvador's development over the past decade has been dichotomous. On the one hand, economic growth has remained persistently low, employment and labor force participation have barely increased, and progress on poverty reduction has slowed. On the other hand, inequality has fallen, and shared prosperity improved together with advances in many social indicators, such as pre-primary enrollment rates, access to prenatal care, immunizations, and water and sanitation. The increase in the use of social spending, which now accounts for 12.4 percent of GDP, together with an improvement in the quality of social spending, explain at least part of this dichotomy of redistributive and social gains despite low growth, a tight fiscal situation and generally low government revenues and spending. Looking forward, the key challenges El Salvador faces are related to continuing improving the quality and efficiency in the social sectors, while maintaining the overall level of social spending within an increasingly constrained fiscal environment, where fiscal constraints, low revenues, and the need to cut the deficit by 3 percent of GDP are significant elements, as well. Priority will have to be given to reallocations and improvements within the spending envelope for the social sectors to maximize impact. This document analyzes social spending for El Salvador for the education, health and social protection and labor sectors in depth and explores a series of policy options for El Salvador to reallocate social spending for more effective impacts, to enhance and reform social policies and social service delivery, and to improve the management of public spending and budget execution in the social sectors.

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