The four new "development pitfalls" facing Latin America

The Organization for Economic Co-operation and Development (OECD) presented the report on the 2019 Latin American Economic Outlook (LEO) in Buenos Aires at the Second United Nations High-Level Conference on Co-operation South. -On (PABA +40). The survey reveals four new "development pitfalls" facing the region: social vulnerability, low labor productivity, insufficient trust in institutions and environmental threats.

According to the OECD's GDP statistics, the region has made undeniable progress since the 1990s: "Regional income per capita has increased by about 50% from low-income countries to low-income countries. medium-high, some have even moved from middle-income countries to high-income economies, such as Argentina, Chile, Panama, Trinidad and Tobago, and Uruguay, such as Costa Rica or Mexico, they will do it in the years to come ".

However, "The increase in national income in Latin America and the Caribbean countries has not automatically translated into an improvement in the level of well-being of all the inhabitants of the region.. In addition, disparities in the level of well-being among the countries in the region with the same level of per capita income continue to be significant. Some challenges, such as the disproportionate impact of climate change, inequalities and other vulnerabilities, persist or increase, "said EU Commissioner Neven Mimica.

"After the end of the commodity boom of the 2000s, potential GDP growth was below expectations. Less favorable global context worsens structural challenges in the region, as the slow growth of productivity, "explained Pablo Sanguinetti, vice president of knowledge of CAF.

The report clbadifies these challenges as four new development pitfalls, which are interdependent in the current context of Latin America and the Caribbean:
1. Social vulnerability: 40% of the population of Latin America and the Caribbean (Latin America and the Caribbean) are currently at risk of returning to poverty. This "vulnerable middle clbad" is caught in a vicious circle that includes low-quality jobs, poor skills and unstable incomes.

2. Low labor productivity: Over the last 30 years, output per worker has remained stagnant at 40% of the EU level.

3. Low confidence in institutions: 64% of Latin Americans say they do not trust their government, more than a third are not satisfied with the education provided in the country and more than half are not satisfied with the medical care that They receive.

4. Environmental threats: LAC has 40% of the planet's biodiversity and one of the lowest ecological footprints in the world. nevertheless, it suffers in large part from the consequences of collective inaction at the global level. The recent natural disasters in the Caribbean are a striking example.

"Avoiding these four pitfalls requires energetic reforms: there is a need to improve public capacity and public-private dialogue to identify policy priorities and coordinate ministries, through adoption and implementation. implementation of a new generation of national development plans, "said Alicia Bárcena, Executive Secretary of ECLAC.

"We need to pay attention to our cooperation with these countries to make sure no one is left behind," added EU Commissioner Neven Mimica.

The report proposes three priorities for renewing international cooperation "as a development facilitator": to form multilateral alliances between countries with all types of income, treat everyone as partners in the same state and take advantage of their different contributions. Promote national and local development strategiesl for sustainable development that takes into account the growing interrelationships between challenges and opportunities at the national and global levels. And expand the modalities of cooperation and include the exchange of knowledge, multilateral political dialogues, capacity building and cooperation in science, technology and innovation.