In both Brazil and the Bolivarian Republic of Venezuela, the distribution effect came to outstrip the growth effect, with its contribution rising from 45% to 55%, and it increased substantially in another three countries. While the changes observed are small in size, they do indicate that countries have scope to deal with adverse economic situations by safeguarding the living conditions of the most disadvantaged in society. Other income sources, particularly transfers, also contributed, but to a lesser degree. In the second period, however, transfers played a much more important role. In fact they were the main source of poverty reduction in Chile and Panama and played an important role in Argentina, Colombia and the Dominican Republic (see figure 1.5).