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Economic Policy and Human Rights

Economic Policy and Human Rights

Radhika Balakrishnan | Diane Elson | Sarah Gammage | Nursel Aydiner-Avsar | Lourdes Colinas | Alberto Serdan-Rosales | Gabriel Lara | James Heintz | Carlos Salas | Daniela Ramirez Camacho | Roberto Constantino | Kristina Parker

(2011)

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Book Details

Abstract

Economic Policy and Human Rights presents a powerful critique of three decades of neoliberal economic policies, assessed from the perspective of human rights norms. In doing so, it brings together two areas of thought and action that have hitherto been separate: progressive economics concerned with promoting economic justice and human development; and human rights analysis and advocacy. Focussing on in-depth comparative case studies of the USA and Mexico and looking at issues such as public expenditure, taxation and international trade, the book shows that heterodox economic analysis benefits greatly from a deeper understanding of a human rights framework. This is something progressive economists have often been skeptical of, regarding it as too deeply entrenched in 'Western' norms, discourses and agendas. Such a categorical rejection is unwarranted. Instead, human rights norms can provide an invaluable ethical and accountability framework, challenging a narrow focus on efficiency and growth. A vital book for anyone interested in human rights and harnessing economics to create a better world.
'Economists have long struggled to find frameworks for integrating concerns of justice with economic policy formation. This refreshingly novel approach to assessing the effectiveness of macroeconomic policy offers a timely alternative lens that identifies human well-being as the main guidepost. Its most striking achievement lies in clearly delineating the linkages between human rights and macroeconomic policies, providing a tool to hold governments accountable to their human rights commitments.' - Stephanie Seguino, University of Vermont 'An insightful exploration of the relationship between human rights and economic policies. This book asks how we should evaluate economic policies in the light of the human rights commitments that states have signed up to, and offers practical tools for assessing the justice of alternative economic policy choices. In the current economic climate, the messages and frameworks for analysis should be taken seriously by policy makers and their advisors. For activists and advocacy groups, it offers the language to counter economic policy choices that undermine progress towards the realization of rights.' - Sarah Cook, Director, United Nations Research Institute for Social Development 'Recommended reading for anyone committed to social and economic justice.' - Ceasefire
Radhika Balakrishnan, Executive Director of the Center for Women's Global Leadership, and Professor, Women's and Gender Studies at Rutgers, the State University of New Jersey. Previously, she was Professor of Economics and International Studies at Marymount Manhattan College. She has worked at the Ford Foundation as a program officer in the Asia Regional Program. She is currently the Chair of the Board of the US Human Rights Network and on the Board of the Center for Constitutional Rights. She is the author of Why MES with Human Rights: Integrating Macro Economic Strategies with Human Rights (Marymount Manhattan College, New York, 2005). She edited The Hidden Assembly Line: Gender Dynamics of Subcontracted Work in a Global Economy (Kumarian Press, 2001) and co-edited Good Sex: Feminist Perspectives from the Worlds Religions, with Patricia Jung and Mary Hunt (Rutgers University Press, 2000). She has also authored numerous articles that have appeared in books and journals. Diane Elson holds a Chair in Sociology at the University of Essex, UK and is a member of the Essex Human Rights Centre. She has acted as advisor to UNIFEM, UNDP, Oxfam, and other development agencies and is a past vice president of the International Association for Feminist Economics. She has published widely on gender and development. Her academic degrees include a B.A. in philosophy, politics, and economics from the University of Oxford; and a Ph.D. in economics from the University of Manchester.

Table of Contents

Section Title Page Action Price
About the editors i
Figures, Tables and Box vi
Figures vi
Chapter 1\r vi
1.1 Public sector revenue and expenditure (1980–2009) 30
1.2 The public sector budget balances (1980–2009) 31
1.3 Financial Requirements of the Public Sector (FRPS) (1990–2008) 32
1.4 Total public expenditure (1980–2009) 34
1.5 Latin American Index of Budgetary Transparency (results for Mexico) 36
1.6 Inflation rate and economic growth (1980–2009) 38
1.7 Economic growth and employment in micro-enterprises as a share of total urban employment (1993–2004) 42
1.8 Index of average real wages in manufacturing and the real minimum wage (1980–2007) 45
Chapter 2\r vi
2.1 Total government deficits as a percentage of GDP 59
2.2 Federal Funds Rate (1960–2009) 62
2.3 Unemployment: current and prior recessions 63
2.4 Index of productivity and hourly compensation of production and non-supervisory workers (1959–2008) 64
2.5 Good jobs, as a share of total employment (1979–2006) 65
Chapter 3\r vi
3.1 Public expenditure on social development and economic development 74
3.2 Per capita social expenditure in Latin America 74
3.3 Public expenditure on health and education in Mexico 75
3.4 Trends in real per capita public health spending in Latin America 76
3.5 Under-five child mortality rates in Latin America 77
3.6 Maternal mortality rates in Latin American countries 79
3.7 Underspending in Mexico’s public health sector 81
3.8 Affiliation to the Popular Insurance among rural uninsured 82
3.9 Distribution of Popular Insurance accredited medical units across states 83
3.10 Anti-poverty expenditure 86
3.11 Chronic undernourishment in children aged under five, by region (1988–2006) 88
3.12 Chronic undernourishment in children under five, by income deciles (1999–2006) 89
3.13 Chronic undernourishment among indigenous and non-indigenous children (1988–2006) 89
3.14 Open Budget Index 2008 91
3.15 Index of participation in the budgetary process, selected Latin American countries (2007 and 2009) 93
Chapter 4\r vi
4.1 Federal government outlays by function, percentage of GDP (1980–2009) 101
4.2 Public social expenditure as a percentage of GDP (2007) 102
4.3 Public social expenditure as a percentage of GDP (1980–2007) 102
4.4 Public social expenditure per head, at constant prices and constant PPPs, in 2000 $US (1980–2007) 103
4.5 Expenditure on Medicare and Medicaid as share of GDP (1980–2008) 104
4.6 US per capita public health expenditure in 2008 dollars (1980–2008) 105
4.7 Percentage of US population covered by different types of health insurance 105
4.8 Per capita public expenditure on health, US$ PPP (1980–2008) 106
4.9 Infant mortality (deaths per 1,000 live births), United States 109
4.10 Maternal mortality (deaths per 100,000 live births), United States 109
4.11 Insurance coverage of non-elderly population by race and ethnicity (2009) 111
4.12 Uninsured rates by citizenship status (2009) 111
4.13 Percentage of people without insurance by race/ethnicity 112
4.14 Percentage of people without insurance by sex 113
4.15 Infant mortality rate by race and ethnicity (infant deaths per 1,000 live births) 114
4.16 Maternal mortality rate by race and ethnicity (deaths per 100,000 live births) 115
4.17 Age-adjusted death rates by race/ethnicity (per 100,000 population) 115
4.18 Five-year relative cancer survival rates for selected cancer sites by race and sex 116
4.19 Selected indicators of utilization of health resources by race (2009) 117
4.20 Trends in prevalence of food insecurity in US households 121
4.21 US households with food insecurity by various household characteristics 122
4.22 US households with very low food security by various household characteristics 123
Chapter 5 vi
5.1 Structure of public sector revenue (2008) 132
5.2 Oil revenues of the public sector as a percentage of GDP 133
5.3 Federal government revenue (1980–2008) (as a percentage of GDP) 133
5.4 Income tax (ISR), VAT and royalties as a percentage of total government revenue 134
5.5 Government revenue (1986–2008) 134
5.6 Tax revenue by type of tax (1980–2007) 136
5.7 Structure of income tax collection 136
5.8 Tax revenue in OECD countries, America and Mexico (2004) 138
5.9 Share of property tax in GDP 139
5.10 Monetary income distribution by decile (1998–2006) 142
5.11 Income tax contribution and tax incidence by decile 142
5.12 VAT: share and incidence by income groups (2002) 143
5.13 Incidence of VAT taxation by income decile (1984–2004) 144
5.14 Fiscal and tax information requested by IFAI 147
5.15 Civil penalties for fiscal lawbreaking 148
5.16 Tax evasion and avoidance in Mexico (2003) 149
Chapter 6\r vi
6.1 Total tax revenue as percentage of GDP: United States . 157
6.2 Total tax revenue as percentage of GDP (1975–2007): country comparison 158
6.3 Percentage composition of tax receipts by source (1960–2006) 158
6.4 Corporate versus personal share of federal income tax 159
6.5 Incidence of US federal taxes by household income group (1960, 2004) 165
6.6 Comparing average incidence of different state and local taxes on household income of different household groups 165
6.7 Incidence of state and local taxes on household income of different household groups (2007, all states) 166
6.8 Average changes in state and local taxes as shares of income (1989–2007, all states) 166
6.9 Distribution of family income by race 166
6.10 Poverty rates of families by race and presence of workers in female-headed households (2008) 167
6.11 Ratio of black and Hispanic to white median family income (average of all households) 168
6.12 Ratio of black and Hispanic to white median family income (by type of household) 168
6.13 Income tax deductions, compared to income, individuals and businesses 170
6.14 Audits of corporations 170
6.15 Number of civil penalties against corporations 171
Chapter 7\r viii
7.1 PROCAMPO programme, 1994–2007: total budget, producers supported, hectares of land supported 180
7.2 PROCAMPO programme, 1994–2007: support per producer and per hectare 180
7.3 Structure of exports in Mexico (1980–2007) 183
7.4 Jobs and wages in the clothing industry in Mexico (1988–2004) 186
7.5 Jobs and wages in the auto parts industry in Mexico (1988–2004) 186
7.6 Manufacturing sector in Mexico: productivity versus real wages (1988–2004) 187
7.7 Monthly real wages in Mexico: agriculture versus manufacturing sector (1988–2004) 188
7.8 Men’s and women’s real monthly salaries in the export maquila sector (1997–2006) 189
7.9 Monthly real wages in the export maquila sector (1980–2006) 189
7.10 Employment in the export maquila sector (1980–2006) 190
7.11 CPI variation (1994–2008) 191
7.12 Food expenditure as a share of monetary current income of households, by deciles (2000–06) 193
7.13 General inflation and food inflation, compared to minimum wage 194
Chapter 10\r viii
10.1 Share of households covered by private pension plans 239
10.2 Share of pension participants primarily in defined contribution plans (1975–98) 240
10.3 Share of pension participants in defined contribution and defined benefit plans (1980–2004) 240
10.4 Poverty rate among elderly Americans 242
Tables ix
1.1 Macroeconomic indicators (1993–2009) 41
1.2 Structure of employment by type of contract, 1995, 2000, 2007 43
1.3 National poverty lines as a percentage of the minimum wage (1992–2008) 45
3.1 Registered maternal deaths at the sub-national level 78
3.2 Shares of public expenditure by deciles (2000) 80
3.3 Health spending by group 80
3.4 Distribution of population by insurance and locality (2005) 82
3.5 Social security entitlements among the indigenous and nonindigenouspopulation, 2005 83
3.6 Distribution of maternal deaths in the country 84
3.7 Undernourishment of children aged under five 88
4.1 Health expenditure indicators: selected high-income countries 107
4.2 Life expectancy indicators: selected high-income countries 110
4.3 Healthcare indicators for eight industrialized countries 118
5.1 Mexico: tax revenue as percentage of GDP 137
7.1 NAALC’s labour principles 179
7.2 Imports as a share of the domestic consumption of staple foods, Mexico (1990–2005) 185
7.3 Average CPI of selected products with reference to the general index (1980–2008) 192
8.1 NAFTA trade-related job displacement, 1993–2004: analysis by social group 210
9.1 Total number of pensions granted by IMSS and ISSSTE 224
9.2 The changing qualification conditions for an IMSS pension 224
9.3 Active labour force and social security access, disaggregated by age, education and gender 226
Box x
5.1 Eliminating explict gender bias in personal income tax (PIT) 145
Abbreviations xi
Acknowledgements\r xiii
Introduction: Economic Policies and Human Rights Obligations 1
Dialogue between human rights advocates and progressive economists 2
Clarification of human rights obligations 3
Key principles in meeting obligations regarding economic and social rights 7
Evaluating economic policies in the light of human rights obligations 11
Key findings 16
Holding governments to account 24
Changing the way that economists evaluate policies 25
Notes 25
References 26
1  |  Fiscal and Monetary Policy and the Right to Work: Mexico 28
Introduction 28
Conduct of fiscal policy 28
Conduct of monetary policy 37
Results of fiscal and monetary policy with respect to the right to work and \nto just and favourable conditions of work 40
Conclusion 46
Notes 47
References 49
2  |  Human Rights Dimensions of Fiscal and Monetary Policies: United States 52
Introduction 52
Fiscal and monetary policy and the right to work and to just and favourable conditions of work 53
Fiscal and monetary policy in the United States 57
Non-discrimination and equality 65
Transparency, accountability, participation: fiscal policy 67
Conclusion 70
Notes 71
References 71
3  |  Human Rights and Public Expenditure in Mexico 73
Introduction 73
Progressive realization and non-retrogression 73
Non-discrimination and equality 79
Minimum core obligations: the right to an adequate standard of living, especially the right to food 85
Transparency, accountability and participation 90
Conclusion 94
Notes 96
References 97
4  |  Human Rights and Public Expenditure in the USA 99
Introduction 99
Progressive realization and non-retrogression: public expenditure and the right to health 101
Non-discrimination and equality in right to health 110
Minimum core levels of rights: the right to food 119
Transparency, accountability and participation 124
Conclusion 126
Notes 127
References 128
5  |  Taxation and Economic and Social Rights in Mexico 131
Introduction 131
Sources of public sector revenue in Mexico 132
Taxation 135
Taxation and the use of maximum available resources 137
Non-discrimination and equality 140
Box 5.1 Eliminating explict gender bias in personal income tax (PIT) 145
Transparency, accountability and participation 146
Notes 150
Conclusions 150
References 151
6  |  Taxation and Economic and Social Rights in the USA 153
Introduction 153
US tax policy 153
Obligation of conduct 154
Conclusions/recommendations 171
Notes 172
References 172
7  |  Trade Policy and Human Rights: Mexico 175
Introduction 175
Progressive realization, with respect to the right to work and to just and favourable conditions of work 178
Non-discrimination and equality, with respect to the right to work and to just and favourable conditions of work 187
Minimum core obligations to ensure a minimum level of enjoyment of key rights: the right to food 190
Conclusions 194
Notes 195
References 196
8  |  Trade Policy and Human Rights Obligations of the USA: NAFTA 199
Introduction 199
Non-discrimination and equality 202
Which of my rights are protected? 206
May I initiate a complaint directly if my rights are violated? 206
Do I have the right to bring legal action in the country where the violation occurred? 207
If the violations continue and go unpunished by the other country, may I seek remedies at a higher level? 207
If the other government refuses to abide by the decision, are trade sanctions imposed? 207
Minimum core obligations (with respect to the right to food in Mexico) 212
Accountability, transparency and participation 214
Conclusion 218
Notes 219
References 220
9  |  Regulation: Pension Reform and Human Rights in Mexico 222
Mexico’s retirement security system 222
Progressive realization and non-retrogression 223
Non-discrimination and equality 225
Transparency and accountability 228
Conclusions 232
Notes 232
References 233
10  |  Regulation: Pension Reform and Human Rights in the USA 234
Ageing populations and pension reform 234
The United States’ retirement security system 236
Progressive realization and non-retrogression 238
Non-discrimination and equality 242
Transparency and accountability 244
Conclusion 246
Notes 247
References 247
About the Contributors 249
Index 252
About Zed Books 258