8/8/2019 Informe Latinoamrica WEF (Ingls)

1/1

Regional Agenda CouncilLatin America

A. Description of the issue

Latin America has emerged relatively unscathed from the recent global economic downturn. The paceof recovery in 2010-2011 seems robust, with an estimated 4% growth rate for the region as a whole higher than global growth forecasts. More importantly for the future, macroeconomic indicatorspromise to be less volatile than in the past.

However, one-fourth of the regions 600 million inhabitants still live below the poverty line with unequalaccess to basic services and infrastructure. Latin American countries also face other challenges:achieving regional cooperation and integration, quality education, energy security and sustainable useof natural resources. Consensus in the region on the means to strengthen democracies, increaseprivate sector participation and reduce poverty seems to be fading.

B. Dimensions

In spite of ideological divergences, Latin America has many reasons to increase the extent of regionalcooperation, not just between states but also among government, private sector firms and civil societyorganizations. Here are some of the dimensions for discussion during our next cycle:

With newly elected governments taking office in several countries in the region and upcomingnational elections in others, attention will be focused on the degree to which democraticinstitutions are able to process and satisfy social and demographic pressures. The new politicallandscape could affect the regions investment climate, the path of reform and overall regionalgovernance.

Assuming that macroeconomic stability can be preserved, the region needs to invest heavily inimproving infrastructure and overall competitiveness of many of the regions larger economies. Asit becomes more integrated globally, it should reinvigorate international trade, preventing barriersand protectionist measures.

The need to improve education and training has also long been seen as a key priority if LatinAmerica is to improve productivity and innovation to compete in more sophisticated productmarkets. Reforms that improve the quality of teacher training and the role of private sectoremployers should be properly evaluated.

Tackling poverty and reducing inequality are not just matters related to improving incomes ofthose at the bottom of the social ladder, but also improving the environment in which people learn,

live and work. Analysis and promotion of social safety nets based on successful regionalexperiences is another important line of work.

Encourage global cooperation on climate change initiatives promoting a green economythatincludes clean technology, sustainable energy sources and ecosystem conservation. LatinAmerica should assume greater leadership in this area, particularly for the upcoming MexicoCOP16 meeting at the end of 2010.

Tackling these dimensions requires government, business and community leaders to come together toproduce sound strategies and offer practical ideas and credible attitudes for advancement. We believethere is a window of opportunity for the region to pass over past differences and inaugurate a new eraof reinforced trust and integration. The Regional Agenda Council on Latin America aims to promotestructural reforms that create a safer, cleaner and more inclusive economy.