Latin America and the Caribbean today: slower growth, widening gaps and falling trust in institutions underline the need for structural reforms Today’s macroeconomic context is putting the region’s past socio-economic progress to the test. More than ever, structural reforms to raise productivity, advance social inclusion, and strengthen public sector capacity and governance are needed to sustain economic and social development. The LAC region is facing a turning point. The first years of the 21st century saw great economic and social progress – rapid expansion of international trade and strong demand for the region’s commodities, along with greater macroeconomic discipline and innovative social policies, delivered robust growth
and lifted millions of households – more than 10% of the region’s population – out of poverty. After two years of negative growth, the LAC region experienced a mild economic recovery over 2017-18. While this is positive news, it should not give room for complacency, particularly in a global context of increased protectionism and high levels of uncertainty; weak global growth and investment; persistently low commodity prices and a rising trend in interest rates. The sustainability of the region’s recent successes is thus being tested, underscoring the importance of structural reforms to underpin sustainable and inclusive growth.
Selected indicators of governance and well-being in Latin America and the OECD (percentage of respondents replying positively to each question) Confidence in honesty of elections 80%
Feel safe walking alone
70% 60%
Voiced opinion to official
Latin America 2006 Latin America 2012 Latin America 2016 OECD 2016
50% 40% 30% 20%
Confidence in national government
No corruption in Government
10% 0%
Confidence in local police
Satisfied with educational system
Confidence in judicial system
Satisfied with quality of healthcare
Source: OECD (2018) Latin American Economic Outlook 2018 6 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN