Indigenous Peoples, Poverty and Human Development in Latin America Harry Anthony Patrinos
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Indigenous Peoples, Poverty and Human Development in Latin America Harry Anthony Patrinos World Bank February 9, 2007 Georgetown University Washington, DC Context • UN Decade of Indigenous Peoples 1994-2004 • Indigenous gains in political influence – Upheavals: Mexico, Ecuador, Bolivia – Indigenous political representation increasing • Changes in international & national policy Harry Anthony Patrinos, World Bank 2 Good news: the education gap has been narrowing steadily Percent of population that had some schooling Peru by birth cohort, 1950-1980 (% of population with some schooling) 100 Non-indigenous 90 Indigenous 80 70 1950 1960 1970 1980 Lines are logarithmic estimates of trends Harry Anthony Patrinos, World Bank 3 But indigenous people still have fewer years of education… Indigenous/non-indigenous schooling gap, average years of school, 15 & older, latest year Country Bolivia Ecuador Guatemala Mexico Peru Non-Indigenous 9.6 6.9 5.7 7.9 8.7 Harry Anthony Patrinos, World Bank Indigenous 5.9 4.3 2.5 4.6 6.4 Schooling Gap in Years 3.7 2.6 3.2 3.3 2.3 4 … and receive less added income for each year of education Average earnings gain for an additional year of schooling is less for indigenous people, latest available year (%) Country Bolivia Ecuador Guatemala Mexico Peru Non-Indigenous 9 8 13 10 12 Harry Anthony Patrinos, World Bank Indigenous 6 7 12 8 13 5 Evidence of labor market discrimination is still significant Discrimination explains ¼ to ½ of labor earnings gap between indigenous & non-indigenous people, but may be falling (% of earnings unexplained) Country Bolivia (urban only) Ecuador Guatemala Mexico Peru Harry Anthony Patrinos, World Bank Early 1990s 28 33 52 48 50 Latest Available Year 26 45 42 42 58 6 Low tests scores for indigenous children suggest low quality schooling Standardized test scores for indigenous children in national math tests, grade 5 Country Bolivia 1997 (OREALC) Guatemala 2000 (grade 3) Mexico 2001 (EN) Peru 1997 (OREALC) Harry Anthony Patrinos, World Bank NonIndigenous 16 48 463 14 Indigenous Gap 14 40 430 10 12% 17% 7% 27% 7 Some new and successful social programs reach indigenous peoples Mexico: portion of indigenous/non-indigenous peoples in income quintile that benefit from Oportunidades conditional cash transfers 68% 61% 42% 33% 23% 19% 12% 4% 1 3 2 4 8% 1% 5 Income Quintile, lowest to highest Indigenous Harry Anthony Patrinos, World Bank Non-indigenous 8 But social insurance systems cover fewer indigenous peoples Percent of workers in firms with 10+ employees who contribute to social security, Guatemala 2000 69% 65% 61% 56% 45% 36% Total Rural Indigenous Harry Anthony Patrinos, World Bank Urban Non-indigenous 9 Evidence of poor health among indigenous peoples is widespread Stunting (height/age) is about twice as widespread among indigenous children (% of children that are stunted) 59 58 44 33 29 14 Ecuador Guatemala Non-indigenous Harry Anthony Patrinos, World Bank Mexico Indigenous 10 Little progress in income poverty reduction for indigenous people Poverty rates changed little for indigenous peoples; where poverty declined, progress was slower for indigenous peoples (% change in headcount poverty rate between earliest and latest survey year) Country Bolivia, 1997-2002 Ecuador, 1994-2003 Guatemala, 1989-2000 Mexico, 1992-2002 Peru, 1994-2000 Harry Anthony Patrinos, World Bank Non-Indigenous - 8 + 14 - 25 - 5 + 3 Indigenous Change of less than Change of less than -15 Change of less than Change of less than 0.1 0.1 0.1 0.1 11 Indigenous people also recover more slowly from economic crisis Indigenous poverty rates climbed less rapidly during crises, but also recovered more slowly Percent change in headcount poverty rate Country Non-Indigenous Indigenous Ecuador Crisis (1998-1999) Recovery (2000-2003) Mexico Crisis (1994-1996) Recovery (1996-2000) Harry Anthony Patrinos, World Bank + 6 - 14 + 5 - 5 + 27 - 25 + 8 - 1 12 Four priority areas for action • More and better education – Decrease gap in years of schooling – Improve school quality (bilingual/bicultural education) • Promote equal opportunities – “head start” for indigenous – Maternal and child health projects • Improve accountability in delivery of social services • Improve data collection efforts – Include identification questions for indigenous Harry Anthony Patrinos, World Bank 13 Moving beyond poverty & human development • • Link between indigenous & poverty established Poverty has not diminished over time But need to move beyond human development • Need to examine distribution & returns to income generating assets (physical, human, public, social capital) Harry Anthony Patrinos, World Bank 14 Objectives of new study Economic Opportunities for Indigenous Peoples in Latin America 1. Examine composition of income and incomegenerating activities of indigenous 2. Investigate factors determining participation of indigenous in income-generating activities 3. Identify key features of policies & programs to increase economic opportunities Harry Anthony Patrinos, World Bank 15