Answer:
PRO-POOR FISCAL POLICY
Income redistribution is achieved by fiscal policy mainly, but it does not limit itself to income transfers from the rich to the poor. In informal markets, fiscal incentives for poorer entrepreneurs can encourage them to enter the formal sector, provide social security for them, and they make easier to pay taxes according to status and profits. On the other hand, fiscal incentives for banks can encourage them to lend money to poor people, providing guarantees of payment and creating funding programmes targeted to the poorest deciles.
BETTER TARGETING OF SOCIAL PROGRAMMES
Targeting helps to reduce income inequality and inequalities related to education and health. Income transfers programmes can have a greater and longer term impact if better targeting is used, ensuring people with wider gaps in access and income inequality are participants of the programmes.
PROMOTIVE ACTION
Discrimination against certain groups of population might isolate them and limit their access to opportunities for a better wellbeing. Media campaigns and advocacy efforts, which identify this kind of discrimination and promote the participation of these sectors, can make people with disabilities, migrants, religions groups and indigenous groups more confident about their inclusion in the State.
Affirmative action can help to reduce the impact of ancient discrimination towards social groups, like indigenous groups. Quotas for political participation can also improve their voice on public policy.
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