While Venezuela, Brazil and Mexico have each tackled the poverty issue by increasing social spending, the types of programs and use of resources has had and will continue to have different effects for the future. Venezuela, relying on the revenue of high oil prices, has vastly increased social spending on building homes and clinics. Brazil has tackled education and health to address the issue of poverty, while Mexico has concentrated on stipends to poor families that is slated to be the most successful at tackling the actual causes of poverty. While in the short run these programs grant benefits to the poor, in the long run the failure to significantly address the causes of poverty can contribute to continued dissatisfaction with the
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The government initially budgeted $857 million for social spending in 2006, but as oil money continues to pour in, officials keep increasing the amount. This lack of stable allocation in itself is a recipe for failure in the event that the money ceases to flood in as before, and as such a drastic change in the economic cycle will certainly cause widespread dissatisfaction and refounding sentiments Chavez's government is itself based on. Money spent on the fly may have short term gains, but will almost certainly have long term consequences.
Brazil has also seen the increase of the poverty problem, especially as the country has continuously urbanized. Government efforts to reduce poverty and assist the poor have been criticized for focusing on the urban poor of Brazil. It is easy to see why, as the greater density of the poor population in urban areas facilitates effective government intervention and the concentration of wealth administrative capacity in urban areas endows the government with more resources to implement social programs for the poor residing in those jurisdictions. Tremendous strides have been made in the recent years in improving the access of poor urban households to health care, basic education, and clean water. While it has also greatly improved in the rural