Organization Matters

Latin America spends a large amount of resources on social services, yet its life expectancy and education levels are low compared to other regions with similar levels of income. One reason is the inherent difficulty of making social services respond efficiently to demands and needs. This study sets out to demonstrate how improving the institutions which provide those services can make a significant difference in health conditions and student learning. It provides a general framework applying the lessons of institutional economics to the particularities of social services. Case studies then assess the impact of institutions on performance in education in Brazil, Venezuela, Chile and the Dominican Republic. The authors shows that the relationships and rules followed by governments, service providers, and consumers can mean the difference between success and failure. They also point towards better ways of organizing social services, and ultimately improving health and education in the region.