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ACTIVE WITH

LATIN AMERICA AND THE CARIBBEAN


SUPPORTING STRUCTURAL REFORM EFFORTS IN LATIN AMERICA AND THE CARIBBEAN Latin America and the Caribbean (LAC) currently faces a complex global context, characterised by a slowdown in international trade, sluggish growth, increasingly tight liquidity, and relatively low commodity prices. This should urge LAC countries to unlock new sources of growth through structural reforms focused on three priority areas: advancing social inclusion, increasing productivity and strengthening institutions and governance. Indeed, as highlighted in the 2019 edition of our Latin American Economic Outlook (LEO), the region needs innovative solutions to advance social inclusion, as insufficient economic growth is already beginning to roll back the gains made in reducing poverty and income inequality over the past decade. At the same time, as LAC countries continue to develop, new challenges have emerged in a number of areas including competition, regulatory policies, taxation, corporate governance and environmental protection. These are issues widely covered by the OECD among its multiple policy communities. Likewise, the region must not miss out on the new opportunities being created by the digital transformation, the main theme of our 2019 Ministerial Council Meeting. In June 2016, the OECD launched a LAC Regional Programme to support the region in these efforts. Three years later, this Programme has grown into a privileged platform for dialogue between OECD and LAC countries, along with a growing number of partner international organisations. Going forward, the Programme will continue to support the region in seizing the potential of the digital economy and connectivity to unlock productivity growth; tackle informality and strengthen social protection systems, with a special focus on gender equality and migration; and boost integrity for good governance. As the LAC region moves closer to OECD standards, we have seen an unprecedented increase in the momentum of our partnership. Chile and Mexico are OECD members, Colombia is about to join the Organisation1, Costa Rica is advancing its accession process and Argentina, Brazil and Peru have applied for membership. This enhanced collaboration has also led to a growing LAC membership in the OECD Development Centre, which now has 14 countries from the region as members, three of which – Ecuador, El Salvador and Guatemala – joined recently; and to the active engagement of all of these countries in the Regional Programme, together with the Dominican Republic, Panama, Paraguay and Uruguay. This brochure is a testament to the broad scope and intensity of our work with LAC at both regional and country levels. We look forward to further strengthening our partnership. ANGEL GURRÍA, OECD Secretary-General


CONTENTS

Contents

THE OECD AND LATIN AMERICA AND THE CARIBBEAN 2 Snapshot: The LAC region within the global economy 4 Latin America and the Caribbean today 6 Supporting the region’s reform agenda: The OECD LAC Regional Programme 7 Engaging with LAC countries 18 Working hand in hand with regional partners 22 Identifying policy drivers for sustainable and inclusive economic growth 24 Promoting development and the 2030 Agenda 26 IMPROVING PRODUCTIVITY 28 Increasing the quality, relevance and coverage of education and skills training 29 Improving financial literacy 33 Boosting productivity, including through increased connectivity 34 Fostering innovation 36 Fostering sound competition 38 Enhancing the investment environment and responsible business conduct 39 Promoting trade and integration in global value chains 41 Supporting SME development and entrepreneurship 43 Meeting infrastructure and transport needs 45 Boosting tourism 46 Increasing agricultural productivity and food security 47

STRENGTHENING GOVERNANCE AND INSTITUTIONS 61 Improving revenue collection and fiscal management 62 Enhancing tax transparency and compliance 63 Efficient public procurement and budgeting 64 Enhancing integrity and combating corruption 66 Fostering open government 68 Improving public governance 69 Promoting inclusive regional and urban development 70 Improving water governance 72 Ensuring regulatory efficiency 73 Raising the bar on corporate governance of private and state-owned enterprises 75 ENVIRONMENT AND SUSTAINABILITY 76 Promoting green growth 77 Combating climate change, and moving towards a cleaner and healthier environment 78 Strengthening chemical and biological safety 81 Ensuring reliable and clean energy 82 ANNEXES 84 Partnerships in OECD Bodies 84 Adherence to OECD legal instruments 86 LAC Country Participation in OECD LAC Networks 87 Notes and sources 87 Dialogue and data 88 Disclaimers 88

ENHANCING SOCIAL INCLUSION 49 Creating more and better-quality jobs 50 Tackling gender inequality 52 Better understanding and harnessing migration flows 55 Improving healthcare quality and coverage 57 Tackling inequality and informality, including through inclusive social protection systems 59 CONTENTS . 1


THE OECD AND LATIN AMERICA AND THE CARIBBEAN Latin America and the Caribbean and the OECD are closer than ever, three years after the creation of an OECD Latin America and the Caribbean Regional Programme, oriented to support the region in advancing its reform agenda along three key regional priorities: increasing productivity, enhancing social inclusion, and strengthening institutions and governance. L Participants at the Third High Level Meeting of the OECD Latin America and the Caribbean Regional Programme “Integrity for Good Governance: From Commitments to Action” gather for a photo. At the center, Marta Lucia Ramirez, Vice President of Colombia; Gabriela Ramos, OECD Chief of Staff and Sherpa to the G20; and Nestor Popolizio, Minister of Foreign Affairs of Peru – Lima, Peru, October 2018. 2 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


THE OECD AND LATIN AMERICA AND THE CARIBBEAN

“On 18 May 2019, Mexico celebrated its 25th anniversary as a member of the OECD. We were the first developing country and the first Latin American country to join the Organisation, which began a process of transformation within the OECD and increased its global impact. Our positive and constructive collaboration has lasted for more than two decades. Mexico and the OECD will continue to work together to build on this productive relationship, in areas such as inclusive growth and the fight against bribery and corruption. We share a commitment to people-centred policies and to building inclusive societies. As co-chair of the OECD Regional Programme for Latin America and the Caribbean, Mexico will continue to work with the Organisation to create synergies and increase the social and economic development of all countries in the region.” – Marcelo Ebrard Causaubon, Minister of Foreign Affairs of Mexico The OECD has over time been able to produce quality work whose benefits can go beyond its members, while, at the same time, it was able to improve its research and exchange of experiences from the interaction with non-members. As one of the most active non-members in the Organisation, Brazil has been able to experience and value this openness and it is with great satisfaction that we are now co-chairing the OECD Regional Programme for Latin America and the Caribbean.” – Ernesto Araujo, Minister of Foreign Affairs of Brazil THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 3


Snapshot: The LAC region within the global economy With a combined gross domestic product (GDP) of almost USD 6 trillion2 and a market of 644 million people3, Latin America and the Caribbean (LAC) is a region of growing importance to the world economy. Furthermore, Latin American and OECD countries share many values and interests related to the importance of economic integration and trade and democratic institutions. This sets the basis for a mutually beneficial relationship to address development challenges.

LAC region, as compared to top world economies (2018 GDP – trillions of US dollars)4

1. EU (23.03) 2. USA (20.49) 3. China (13.6) 4. LAC (5.79) 5. Japan (4.97) 6. Germany (3.99)

Diverse regional economies

Vast natural resources

l Variety of overlapping sub-regional trade

Of the world’s resources, LAC possesses:10

blocs, including: – the Pacific Alliance – the Southern Common Market (MERCOSUR) – the Andean Community (CAN) – the Central American Integration System (SICA) – the Caribbean Community (CARICOM) – Asia-Pacific Economic Cooperation (APEC) – United States-Mexico-Canada Agreement (USMCA)

l Three G20 countries: Argentina, Brazil and

Mexico 4 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

l 15% of oil reserves l 25% of all arable land l 33% of all fresh water l Substantial mineral stocks l A key issue is how to better share the

benefits derived from natural resources across society.


THE OECD AND LATIN AMERICA AND THE CARIBBEAN

A growing, yet vulnerable, middle class5 l Most LAC economies are classified as

upper-middle-income economies, based on their GNI per capita rates.6 l Since 2002, 38 million Latin Americans have

moved out of poverty. l However, 18 million people have become

poor since 2015 as a consequence of the economic slowdown. l High rates of informality are a key feature

of LAC labour markets: on average, 52% of workers are affiliated to pension systems. l Primary, secondary and tertiary completion

rates have all risen since 2002, from 84.6-93.7%; 42.6-59.5%, and 11.7-18.1%, respectively. l However, 50% of formal firms in LAC still

cannot find the workforce with the skills that they need (as compared to 36% in OECD countries).

Need to diversify exports l Exports of goods and services are

recovering, reaching 23% of the region’s GDP in 2018. l Yet, FDI inflows have fallen by 20% since

2011, due to lower prices for basic export products, which have significantly reduced investment in extractive industries.7 l 60% of the region’s exports are

commodities, natural resource-based manufactures and low-technology manufactures.8 l Only 11% of exports are high-technology

manufactures.9 Statistics were sourced from the World Bank, ECLAC and Latin Trade, in addition to OECD data. For specific citations, see the Annex on page... THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 5


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


The OECD Latin America and the Caribbean Regional Programme aims to support the region in advancing its reform agenda, responding to the region’s growing awareness of the need for better policies and structural reforms to ensure higher rates of growth and sustain economic and social development. During its first three-year cycle (2016-2018), under the cochairmanship of Chile and Peru, the Programme moved quickly into implementation mode, approving a Programmatic Document to guide its substantive work, and successfully delivering an annual high-level meeting, supported by a regional publication, on each of the Programme’s three priorities. The Programme’s co-chairmanship for 2019-2022 was assumed by Mexico, as an OECD member country, and Brazil, as a LAC

partner country. The co-chairs preside over the Steering Group of the Programme, which provides strategic guidance. The Steering Group is composed of both OECD member countries and a number of Latin American partners (Argentina, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru, and Uruguay) that have expressed their interest in taking part. An evaluation conducted in early 2019 reveals that Steering Group members value the Programme as a platform for strategic, high level, whole-of-government policy dialogue. They recognise its role in increasing OECD impact and relevance in support of policy reform in the region, bringing LAC countries closer to OECD standards and best practices, and bringing in the views, experiences and perspectives of LAC countries to OECD work and activities. J The first regional meeting of the Programme took place on 13 October 2016 in Santiago, Chile at the headquarters of the United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC), bringing together representatives of 22 OECD and LAC countries, as well as regional organisations, such as ECLAC, the Inter-American Development Bank (IDB), the Development Bank of Latin American (CAF) and the Ibero-American General Secretariat (SEGIB). THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 7

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

Supporting the region’s reform agenda: The OECD LAC Regional Programme


Supporting the region’s reform agenda: The OECD LAC Regional Programme

Productivity, social inclusion and governance broadly encompass the region’s inter-related challenges, and are the thematic priorities of the OECD LAC Regional Programme: l

Productivity’s limited contribution to growth in LAC is key to understanding the region’s low relative income. The region’s digital transformation offers many opportunities for enhanced growth and well-being, but also raises many challenges requiring new approaches to policy making.

l

Social inclusion challenges remain despite past progress. While regional inequality, as measured by the Gini index, declined significantly from 0.543 in 2002 to 0.466 in 2017, this decrease has stagnated in recent years, and the regional average remains the most unequal in the world and almost one-third higher than that of Europe and Central Asia. Women, youth, and those in rural areas are especially vulnerable. High rates of informality are a key feature of LAC labour markets, leaving many with no or lacking social security coverage.

l

A perceived lack of integrity is at the heart of the loss of trust in governance and institutions in the region. Corruption was a key issue of debate during the recent elections held in the region, and incoming administrations have strong mandates and responsibility to tackle this issue. A critical challenge for

8 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

the following years will be to bridge the current gap between de jure quality of regulations and their effective de facto implementation. Efficient public service delivery is also a key area of concern, related to growing demand from the region’s middle class and civil society. “The OECD and Latin American and Caribbean countries share significant challenges and priorities related to a rapidly changing world of work, ensuring that the digital transformation benefits everyone. Yet, in the Latin American and Caribbean region – where almost half the population is are still not online, where more than 50% of companies are not able to find the skills they need, added to which are some of the largest gender gaps in unpaid work, it is fundamental to find common solutions. The OECD Latin America and the Caribbean Regional Programme is a platform to adapt the Organisation’s work on these subjects to the specificities of the Latin American and Caribbean region, and provide regional policy makers with comparative analysis and policy advice to guide their reform efforts. We are proud of the progress made together thus far, and glad that both OECD and Latin American and Caribbean countries have called for a second phase of the Programme for 2019-2022.” Gabriela Ramos, OECD Chief of Staff and Sherpa to the G20


“The OECD Latin America and the Caribbean Regional Programme has shown its value for a co-ordinated OECD outreach in the region. We should now increase the engagement of participating countries with its activities to improve its impact.” Carlos Marcio Cozendey, Ambassador, Delegate of Brazil to International Economic Organisations based in Paris

Sybel Galván Gómez, Ambassador of Mexico to the OECD

OECD LAC Regional Programme 3 years promoting better policies to increase productivity, enhance social inclusion and strengthen institutions and governance in Latin America and the Caribbean

L From left to right: Felipe Larraín, Minister of Finance of Chile; Sybel Galván Gómez, SCAN TO READ THE REPORT

Ambassador and Permanent Representative of Mexico to the OECD; OECD SecretaryGeneral Angel Gurría; Nestor Popolizio, Minister of Foreign Affairs of Peru; and Ernesto Araujo, Minister of Foreign Affairs of Brazil at the 8th Meeting of the OECD LAC Regional Programme Steering Group on 23 May 2019 at OECD Headquarters in Paris, France. During this occasion, Chile and Peru officially transferred the Programme’s co-chairmanship for the 2019-2022 period to Mexico and Brazil. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 9

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

“The strengthening of Mexico’s co-operative ties with the Latin American and Caribbean region is a priority for the Mexican government, headed by President López Obrador. We face common challenges such as eradicating entrenched corruption in our societies – outside of the law, nothing; above the law, no one – and reducing high levels of inequality, not only in terms of income but also in terms of opportunities. The OECD Latin America and the Caribbean Regional Programme offers us an excellent space for dialogue to share best practices and public policy experiences that will allow us to create an environment of well-being; with inclusive, open, prosperous and happy societies. We want to achieve this objective and we are convinced that together, we can make more and better progress. Together we will make history.”


luded in this publication highlights that to reignite growth and progress, governments in Latin America must focus on boosting powerment of all workers with skills and technology and the ntrepreneurial dynamism. The publication portrays the situation ies and discusses best practices. It informs the debate on future towards higher productivity and more inclusive growth.

Ministerial Council Meeting by OECD Secretary General Angel le, Michelle Bachelet, the OECD LAC Regional Programme aims ancing its reform agenda along three key priorities: increasing inclusion, and strengthening institutions and governance. For gramme, in partnership with regional international organisations, ailability of comparable statistics; the preparation of policy a high and technical level; and support for implementation with to specific needs of countries or sub-regional contexts.

KEY ISSUES PUBLICATIONS AND HIGH LEVEL MEETINGS During each year of its first 2016-2018 cycle, the Programme held a high-level meeting, supported by a regional publication, on one of the Programme’s three thematic priorities. l

l

A first International Conference/Ministerial Meeting on Productivity and Inclusive Growth was held during December 2016, hosted by Chile and co-organised with the IDB in collaboration with the OECD’s Global Forum on Productivity. This event served as platform to launch the OECD-IDB publication Boosting Productivity and Inclusive Growth in Latin America. A second International Conference/Ministerial Meeting was organised on 16 November 2017 in collaboration with the Government of Paraguay. This event focused on social inclusion, under the subject “Towards Inclusive Social Protection Systems in Latin America and the Caribbean’’. To fuel the discussion during the conference, the OECD publication Enhancing Social Inclusion in Latin America was launched.

The Programme’s third International Conference and Ministerial Meeting on “Integrity for Good Governance in LAC”, held in Lima, Peru from 18-19 October 2018, took an important new step vis à vis the prior meetings by inviting countries to go “from commitments to action” through a “LAC Action Plan on Integrity and Anti-corruption” with 103 concrete actionable recommendations that build on the “Lima Commitment”, endorsed at the XVIII Summit of the Americas.

ENTERING INTO IMPLEMENTATION MODE Building on the mandates of the Programme’s three High Level Meetings during 2016-2018, in 2019 the Steering Group agreed to focus on one significant challenge per thematic priority, with an emphasis on implementation. These three challenges are: i) Productivity: connectivity and digital transformation ii) Social inclusion: informality and social protection iii) Governance: integrity and anti-corruption

www.oecd.org/latin-america/

Take a look at the LACRP key issues publications, covering regional challenges and possible ways forward related to each of the Programme’s thematic priorities

Boosting Productivity and Inclusive Growth in Latin America

Enhancing Social Inclusion in Latin America KEY ISSUES AND THE ROLE OF SOCIAL PROTECTION SYSTEMS

SCAN TO READ THE REPORTS

Integrity for Good Governance in Latin America and the Caribbean FROM COMMITMENTS TO ACTION

FROM COMMITMENTS TO ACTION

ductivity (GFP) was launched by the OECD in 2015 to foster n between public bodies with responsibility for promoting s. The GFP is a platform where participants convene to exchange est practices and frontier-research findings, and undertake joint k programme of the GFP is guided by a Steering Committee of supported by the work of the OECD Secretariat.

l

Integrity for Good Governance in Latin America and the Caribbean

by the OECD and the IDB, in collaboration with the OECD Global ort the discussions of the OECD Latin America and the Caribbean erial Meeting on Productivity and Inclusive Growth, which took m 5-6 December 2016 in Santiago, Chile.

Key highlights of the 2016-2018 cycle include:

BOOSTING PRODUCTIVITY AND INCLUSIVE GROWTH IN LATIN AMERICA

TING PRODUCTIVITY AND E GROWTH IN LATIN AMERICA

Supporting the region’s reform agenda: The OECD LAC Regional Programme

OECD Latin America & the Caribbean

Regional Programme

10 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

OECD Latin America & the Caribbean Regional Programme


adherence by Latin American and Caribbean countries to more than 100 OECD instruments. This impressive engagement spans policy areas and we are quite pleased with the results, which show that the Programme is useful to advance policy discussions in countries and increase synergies with our partner organisations. Going forward, the OECD is supporting more and more countries in implementation. The Programme will become a critical instrument in this regard, oriented to key regional challenges such as harnessing the digital transformation, tackling inequality and promoting a culture of integrity.” Andreas Schaal, OECD Director of Global Relations

J High-level officials from both OECD and LAC countries, as well as representatives of other international and regional organisations, engaged in discussions during the Programme’s 3rd High-level Meeting on “Integrity for good governance in Latin America and the Caribbean: from commitments to action”, which was held in Lima, Peru from 18-19 October 2019. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 11

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

“In only three years, the OECD Latin America and the Caribbean Regional Programme has consolidated itself as a unique dialogue platform gathering OECD and Latin American and Caribbean countries together with a growing number of partner organisations. During the Programme’s first 2016-2018 cycle, we have seen milestone achievements, such as the development of an Integrity and Anti-Corruption Action Plan, six new Regional Policy Networks, more than 50 country reviews in 2018 alone, and the


Supporting the region’s reform agenda: The OECD LAC Regional Programme

The annual flagship publication Latin American Economic Outlook (LEO), already in its 12th edition, continues to contribute its in-depth analysis of economic and social development in Latin America. The latest edition explores the phenomenon of “development in transition”. Furthermore, the annual International Economic Forum on Latin America and the Caribbean, co-organised with the IDB and French Ministry of Economy and Finance, contributes to the Programme as a space for annual high-level policy debate.

“The Development Centre has been instrumental in strengthening the engagement between the OECD and the Latin American and Caribbean region. This enduring partnership relies on in-depth analysis and vibrant participation in policy dialogues. It benefits from our close cooperation with key regional organisations and international institutions active in the region, as well as the membership of fourteen Latin American countries. As the Centre engages in a renewed dialogue with the region – underpinned by the Development in Transition Approach – it reaffirms its leading role in rethinking the way we look at challenges, policies and international co-operation through longstanding products, most notably the Latin American Economic Outlook, Revenue Statistics in LAC and the International Economic Forum on LAC, which are established driving forces of the OECD Latin America and the Caribbean Programme.” Mario Pezzini, Director of the OECD Development Centre and Special Advisor to the OECD Secretary-General on Development

L From left to right: Pablo Sanguinetti, Corporate Director of Economic Analysis and Knowledge for Development, CAF; Alicia Bárcena, Executive Secretary of the United Nations Economic Commission for Latin America and the Caribbean; Neven Mimiça, European Commissioner, International Co-operation and Development; and Mario Pezzini, Director of the OECD Development Centre and Special Advisor to the OECD Secretary-General on Development, at the launch of the 2019 edition of the Latin American Economic Outlook (LEO). 12 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

SCAN TO READ THE REPORT


Policy assessment l Regional publications

SUPPORTING POLICY REFORM IN SPECIFIC AREAS All Programme activities are intended to bring and adapt discussions in OECD committees and the OECD working methods of production of comparable statistics, policy dialogue, and policy assessment and advice to the region. In this way, the Programme’s work builds on the Organisation’s 20+ years of engagement with the region through its Development Centre, regional policy networks, and Committees, as well as incorporating some new activities.

Policy dialogue l Regional policy networks l Global forums l LACRP Steering Group and high-level meetings

Policy advice Country policy reviews / country notes with tailored recommendations l

In particular, OECD LAC Regional Policy Networks (RPNs) play an important role in bringing and adapting the discussions of OECD Committees to the region. The engagement of LAC countries in these networks has proven to be an effective means for the exchange of views and policy practices, leading to a marked increase of participation of countries from the region in OECD committees and adherence to OECD instruments (see Annex).

OECD LAC Regional Policy Networks l l l l l l l l l l l l l

LAC-DAC Dialogue on Development Co-operation (est. 2016) (see page 27) LAC Regional Network of the OECD International Network on Financial Education (est. 2017) (see page 33) OECD-IDB Latin America and Caribbean Competition Forum (LACCF) (est. 2003) (see page 38) LAC Investment Initiative (est. 2009) (see page 39) OECD Health Systems Network for LAC (est. 2016) (see page 57) LAC Fiscal Initiative (est. 2010) (see page 62) LAC Senior Budget Officials Network (LAC SBO) (est. 2000) (see page 65) OECD-IDB Network for Integrity in LAC (est. 2017) (see page 67) OECD LAC Anti-Corruption Initiative & LAC Law Enforcement Network (LAC-LEN) (est. 2018) (see page 67) OECD Network on Open and Innovative Government in LAC (est. 2015) (see page 68) LAC Network on Regulatory Improvement (est. 2015) (see page 73) Latin American Corporate Governance Roundtable (est. 2000) (see page 75) LAC Network on Corporate Governance of State-owned Enterprises (est. 2011) (see page 75)

Take a look at the calendar of upcoming Regional Policy Network meetings here: www.oecd.org/latin-america/events/ THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 13

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

Comparable statistics l Benchmarking


Supporting the region’s reform agenda: The OECD LAC Regional Programme

SUB-REGIONAL CO-OPERATION Recognising the heterogeneity of the region, the Programme has allowed for tailor-made sub-regional initiatives to emerge. The Central America Initiative, launched in 2017 with the Secretary of Economic Integration of Central America (SIECA), aims to support the sub-region to strengthen global and regional value chains, as well as the role of the services sector and SMEs; improve the institutional design of the economic integration process; and advance sub-regional regulatory co-operation. During Costa Rica’s Pro-tempore presidency of SIECA in 2018, the Programme’s 2nd Ministerial Summit on Productivity in LAC was co-organised in San Jose by the OECD, the World Bank and the Ministry of Foreign Trade of Costa Rica – the Secretary General of SIECA and Vice Ministers from Central America, among others, participated in the discussions, which focused on trade facilitation and integration in GVCs. Furthermore, various Central American

I Juan Yermo, Deputy Chief of Staff to the Secretary-General of the OECD, makes an intervention at the XIV Pacific Alliance Summit – Lima, Peru July 2019. 14 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

countries (Costa Rica, the Dominican Republic, El Salvador, Guatemala, Panama) take part in the OECD LAC Regional Programme Steering Group and the OECD Development Centre. Most recently, the OECD and the Central American Bank for Economic Integration (CABEI) signed an MOU to strengthen the partnership with this subregion. “Costa Rica reaffirms its commitment to the effective implementation of the OECD LAC Regional Programme. This initiative is an extraordinary opportunity that can contribute to promote structural reforms in Central America, a region with challenges but with great opportunities. Our process of joining the Organisation is a testimony to the important reforms undertaken to improve our governance and make Costa Rica a more prosperous and inclusive country.” Dyalá Jiménez Figueres, Minister of Foreign Trade of Costa Rica


road safety management and performance in ten Latin American countries; Brazil was added to the OECD SME Financing Scoreboard; Revenue Statistics in LAC expanded its coverage to include Belize, Cuba, and Guyana, bringing total coverage to 25 LAC countries; and coverage of the Services Trade Restrictiveness Index was expanded to include Costa Rica. l

In 2018, data was published expanding OECD Product Market Regulation Indicator coverage to 15 additional nonOECD LAC countries and PISA for Development data was published for the first time, including four LAC countries (Ecuador, Guatemala, Honduras and Paraguay).

STATISTICS An OECD-LAC Statistics Portal (www.oecd.org/latin-america/ data) was developed and launched in 2017. It consolidates information on OECD indicators that include data for at least six LAC countries within nine policy areas: Macroeconomic Indicators, Digital Economy Education & Skills, Gender, Public Sector, Taxation, Trade & Investment, Well-Being, and Migration & Development (see image). Furthermore, coverage of LAC countries in OECD indicators has continued to expand. In particular: l

In 2016, Indicators of Regulatory Policy and Governance (iREG) were published for seven Latin American countries. New indicators on Taxing Wages in LAC were published for 20 LAC countries.

l

In 2017, the 2nd edition of Government at a Glance: LAC expanded its coverage to include Panama; the International Transport Forum (ITF) published data benchmarking THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 15

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

The OECD is also continuing to support the work of the Pacific Alliance. In 2019, the Organisation delivered on 2+ years of collaboration with the Pacific Alliance (PA) Technical Working Group on SMEs, publishing the first OECD SME Policy Index assessment of the LAC region, entitled Policies for Competitive SMEs in the Pacific Alliance and Participating South American countries. Both this report and an OECD publication on Shaping Digital Transformation in Latin America were presented at the 2019 PA Summit in Lima, Peru. This Summit was also the occasion for the OECD and the Pacific Alliance to sign a Joint Declaration. This aims to strengthen their co-operation, support the priorities of each pro-tempore presidency, connect with the global agenda, leverage PA working groups with OECD committees and LAC regional policy networks, and strengthen initiatives from PA Observer countries, 29 of which are members of the OECD.


Supporting the region’s reform agenda: The OECD LAC Regional Programme

Going forward, the OECD is spearheading a project on Metrics for Policies for Well-being and Sustainable Development in LAC, implemented jointly with ECLAC and the European Commission in the context of the EU Regional Facility for Development in Transition. The project aims to identify the most policy-relevant indicators for improving people’s wellbeing and achieving the SDGs in the LAC region; highlight data gaps and key areas for statistical development to produce these indicators on a comparable basis; and explore policy-making usages of the indicators, drawing on experience in OECD countries. To support this work, a Regional Expert Network was launched in April 2018, with high-level representatives from statistics offices and planning ministries from Argentina, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Peru, and Uruguay.

www.oecd.org/latin-america/data www.oecd.org/statistics/lac-well-being-metrics.htm

“Within the transition of Latin America towards a state of integral development, collaboration with the OECD as a strategic partner is very important. We believe that the OECD Latin America and the Caribbean Regional Programme has proven to be an effective way to materialise this collaboration, which we hope will be deepened and focus on specific issues of interest and value to the region.” Felipe Morandé, Ambassador of Chile to the OECD

“In Latin America, ‘Development in Transition’ is a necessary and overarching concept. It refers to Development of course, but also to modernising the economy and consolidating basic universal services in Education, Health and Social Protection. In order to achieve this, public income and fiscal restructuring are needed: this will be achieved among other challenges through the formalisation of these parts of our economies that operate with opacity and informality. It is possible to achieve social justice and economic growth as the two legs of a Latin America that will stride towards a vibrant, robust and inclusive future for all.” Manuel Escudero, Ambassador of Spain to the OECD and Chair of the Board of the OECD Development Centre 16 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


THE OECD AND LATIN AMERICA AND THE CARIBBEAN

“Since its creation in 2017, Portugal has always been a strong supporter of the OECD Latin America and the Caribbean Regional Programme. Both bilaterally and multilaterally, we greatly value this vast and diversified region. The challenges ahead are of paramount importance for both parties and the OECD has been playing an important role there over the years. The standards built step by step with all Members States, based on mutual learning and best practices, are guiding principles to us all and one of the most relevant ways to become closer in terms of mutual knowledge, mutual trust and mutual investment. These first three years have proved that with focused priorities and political guidance, the main pillars remain of high importance – productivity, social inclusion and strengthening governance. The Latin American and Caribbean region faces many challenges and Portugal fully trusts that only by an ambitious engagement we will be able to grow together.” Bernardo Lucena, Ambassador of Portugal to the OECD

“As Chair of the External Relations Committee of the OECD, I am committed to further deepening the Organisation’s partnership with the Latin American and Caribbean region and recognise the region’s growing awareness that better policies and structural reforms are needed to ensure higher rates of growth and sustain economic and social development. The OECD benefits substantially from its engagement with the Latin American and Caribbean region – the broader participation of its countries in OECD policy dialogues, analysis and datasets allows the Organisation to acquire knowledge of a wide array of policy experiences, which can inform its work for the benefit of its members and partners. I would also like to congratulate Mexico and Brazil as the new co-chairs of the OECD Latin America and the Caribbean Regional Programme. I look forward to working closely with them to identify how the OECD can best support the Latin American and Caribbean region in continuing to advance its reform agenda oriented to increase productivity, advance social inclusion and strengthen institutions and governance – priorities which both OECD and Latin American and Caribbean countries share.” Ivita Burmistre, Ambassador of Latvia to the OECD and Chair of the OECD External Relations Committee THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 17


Engaging with Latin American and Caribbean countries

The OECD has never been closer to the Latin American and Caribbean region: in 2018, Colombia was invited to join Chile and Mexico from the LAC region as the Organisation’s 37th member country.1 Furthermore, Costa Rica is in the process of accession and Argentina, Brazil, and Peru are currently being considered by the OECD Council as prospective members. All of these countries, as well as the Dominican Republic, Ecuador, El Salvador, Guatemala, Panama, Paraguay and Uruguay, are members of the OECD Development Centre and OECD Latin America and the Caribbean Regional Programme Steering Group. The accession process has been transformative for LAC countries. The two most recent processes, of Colombia and Costa Rica, began in May 2013 and April 2015 respectively. Both countries are engaged in a comprehensive review of their policies, involving

all ministries and agencies. The evaluation process allows OECD standards and good practices to be shared with relevant authorities and serves as a catalyst for domestic reform. Brazil is currently an active and valued Key Partner of the OECD. Along with China, India, Indonesia and South Africa, Brazil contributes to the work of OECD Committees and participates on an equal footing with OECD Members in a number of significant bodies and projects. During May 2017, Brazil officially expressed its interest in becoming an OECD member. Since then, the country has intensified its co-operation with the OECD, further converging with the Organisation’s standards and upgrading its participation in OECD bodies and activities. In its role as a key LAC partner, Brazil is also serving as a co-chair of the OECD LAC Regional Programme for 2019-2022, alongside Mexico in its capacity as an OECD member.

J Iván Duque, President of the Republic of Colombia, with Angel Gurría, Secretary-General of the OECD, during an official visit to OECD Headquarters – Paris, France 12 November 2018. 18 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


Peru was amongst the first countries to engage with the OECD through an OECD Country Programme. Launched in

December 2014, this Programme has been highly effective in supporting Peru’s reform agenda. For example, in 2018, Peru took important steps toward fighting corruption and fostering greater transparency and exchange of information by completing the necessary steps to become a Party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (Anti-Bribery Convention) and the multilateral Convention on Mutual Administrative Assistance in Tax Matters. In addition, Peru enacted 29 legislative decrees that implement OECD recommendations and other policy standards in areas such as environment, waste management, transparency and exchange of information in tax matters, regulatory policy, cross-border bribery, integrity, and rural and urban development. In 2012, Peru formally expressed interest in becoming an OECD member.

J From left to right: UK Secretary of State, Mark Field; Brazilian Minister of Foreign Affairs, Ernesto Araújo; OECD Secretary-General, Angel Gurria; and Brazilian Vice-Minister of Economy, Marcelo Guaranys, at a signing ceremony of the OECD-UK Agreement on support for Brazil’s alignment with the standards and best practices of the OECD – May 2019, Paris. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 19

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

The Organisation is supporting Argentina in its ambitious reform agenda. As a G20 country, together with Mexico and Brazil, Argentina benefits from the broad OECD-G20 agenda and participates in the development of standards for better global governance such as the Base Erosion and Profit Shifting (BEPS) Project and the OECD-G20 Principles of Corporate Governance. In addition, as it does for other G20 countries, the OECD also conducts biannual economic surveys of Argentina, with the most recent published in 2019. Argentina is taking further steps to strengthen its relationship with the OECD via a tailored Action Plan, which mobilises OECD support for Argentina’s key reform priorities across 16 policy areas. In 2016, Argentina formally expressed interest in becoming an OECD member.


Engaging with Latin American and Caribbean countries

Many other LAC countries engage with the OECD through regional activities and by participating in OECD bodies, global forums and international surveys such as the Programme for International Student Assessment (PISA) and Survey for Adult Skills (PIAAC). Members of the Development Centre participate in its governing board and engage in policy dialogue with other developing countries. As is evident throughout this brochure, OECD engagement with the LAC region has clear impact on policy implementation. At the country level, various examples exist, ranging from OECD work on skills triggering demand from Peru to inform their education reform process; OECD work on youth inclusion

informing adjustments of government strategies in El Salvador; and OECD work on fiscal affairs, social protection, and innovation informing reforms in Colombia, Costa Rica, Panama and Peru. Furthermore, following the establishment of the OECD LAC Regional Programme’s “LAC Action Plan on Integrity and Anti-corruption” in 2018, with 103 concrete actionable recommendations that build on the Lima Commitment endorsed at the XVIII Summit of the Americas, several countries, including Costa Rica and El Salvador, have approached the OECD in search of support in the design and implementation of their integrity and anti-corruption strategies, whilst Colombia and Ecuador have signed MoUs with the OECD on integrity and anti-corruption.

J Lenin Moreno, President of Ecuador, and Angel Gurria, SecretaryGeneral of the OECD, during an official visit to OECD Headquarters - Paris, France, 11 July 2019. The OECD and Ecuador also recently signed an MOU on “Design and implementation of National Integrity and Anti-corruption Policies and Strategies. 20 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


THE OECD AND LATIN AMERICA AND THE CARIBBEAN

J Angel Gurría, SecretaryGeneral of the OECD, and Carlos Alvarado, President of Costa Rica, during an official visit to OECD Headquarters in Paris, France on 13 November 2018.

“Peru has been an example of a free and stable economy that strives to provide equal opportunities, through sound management of public policies, as well as by harnessing the opportunities offered by international and regional co-operation and integration. Adopting OECD standards in fields such as integrity, anticorruption measures, fiscal transparency and public governance, has allowed us to maintain dynamic and sustained development. Our continuous efforts to become a full member of the OECD is a national policy that has been maintained during successive governments and enjoys widespread public support. It is widely recognized that the OECD has contributed to the bolstering of more transparent and citizenoriented economies in the region.”

“The focus of the agenda of the OECD Latin America and the Caribbean Regional Programme falls on three pillars: increasing productivity, promoting social inclusion and strengthening institutions. This approach unmistakeably reflects the challenges currently faced by our region. Indeed, with more legality, more entrepreneurship and more equity, we will ensure that Colombia successfully takes on the challenges and opportunities of the current moment.” Marta Lucia Ramirez, Vice President of Colombia

Martin Vizcarra, President of Peru THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 21


Working hand in hand with regional partners

Close co-operation with leading regional organisations has been and continues to be a key feature of the OECD’s work in the Latin American and Caribbean region. The OECD Latin America and the Caribbean Regional Programme’s Steering Group benefits from the participation of leading organisations based in the region, which helps to facilitate synergies and joint projects. The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) partners with the OECD to produce the flagship annual Latin American Economic Outlook (LEO), as well as other regional and country studies. ECLAC also collaborates with the OECD and the EU in the context of the EU Regional Facility for Development in Transition. The Inter-American Development Bank (IDB) is a co-organiser of the International Economic Forum on LAC in Paris, and coorganises or participates in the majority of OECD LAC regional policy networks (see page 13). In addition, the OECD and the IDB have produced joint regional publications, such as Boosting Productivity and Inclusive Growth in Latin America, Broadband Policies for LAC and the Government at a Glance LAC publication series. CAF – the Development Bank of Latin America – has partnered with the OECD since 2011 to produce the LEO. Furthermore, in 2019, the OECD and CAF co-published the first SME Policy Index assessment for the LAC region, covering the members of the Pacific Alliance, as well as Argentina, Ecuador and Uruguay. CAF also co-organises the meetings of the LAC Network on Corporate Governance of State-Owned Enterprises. The Organization of American States (OAS) has collaborated with the OECD for many years in the framework of the OECD LAC Anti-Corruption Initiative and the International Migration in the Americas publication series. Following the OECD LAC Regional Programme’s 2018 meeting on “Integrity for Good Governance in LAC”, the OAS invited the OECD to take part in its Joint 22 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

L From left to right: IDB President Luis Alberto Moreno, SEGIB Secretary-General Rebeca Grynspan and ECLAC Executive Secretary Alicia Bárcena speaking at a panel on Productivity, Inclusive Growth and Governance in Latin America at the 2016 OECD Forum in Paris, France.

Summit Working Group (JSWG) along with 12 other international organisations. In this way, the OECD is adding its relevant activities in a collective work programme oriented to fulfill the mandates of the latest (XVIII) Summit of the Americas. The Ibero-American Secretariat (SEGIB) organises the IberoAmerican Summit, which has served as the venue for the presentation of the LEO since 2007. Ibero-American meetings serve as key opportunities for the OECD to engage in further policy dialogue with regional actors. The Latin American and Caribbean Economic System (SELA) and World Bank recently joined the aforementioned organisations as members of the OECD LAC Regional Programme’s Steering Group. Since 2016, the OECD has collaborated with SELA and CAF to adapt its SME Policy Index methodology to the LAC region. The OECD and the World Bank have also collaborated on various occasions, such as the expansion of the OECD Product Market Regulation Indicators to the LAC region, the OECD Peru Country Programme, and the co-organisation of the Programme’s 2nd Ministerial Summit on Productivity in LAC.


The Facility co-finances tailored initiatives to offer new responses to changing development realities and challenges.

L The Permanent Secretary of SELA, Ambassador Javier Paulinich, the Vice-Minister of Trade of Peru, Sayuri Bayona Matsuda, as well as CAF’s Representative Director in Peru, Manuel Malaret, along with other high-level OECD and Peruvian officials, launch the first SME Policy Index assessment for the LAC region in Lima, Peru on 25 April 2019.

Since its 1st Steering Committee held in July 2018, the Facility approved a number of regional and country-specific projects, covering issues such as well-being indicators, fiscal policy and domestic resource mobilisation, gender equality, investment, and budgeting and infrastructure. The OECD collaborates and seeks to create synergies with other EU Programmes, such as the Programme for Social Cohesion in Latin America (EUROsociAL+) and AL-INVEST, as well as other relevant regional partners such as the Inter-American Center of Tax Administrations (CIAT). The OECD looks forward to strengthening and expanding all of these partnerships through the LAC Regional Programme.

L From left to right: Hugo Sobral, Deputy Managing Director of the Americas within the European External Action Service (EEAS); Mario Pezzini, Director of the OECD Development Centre and Special Advisor to the OECD Secretary-General on Development; Jolita Butkeviciene, DG-DEVCO’s Regional Director for LAC; Andreas Schaal, Director of the OECD Global Relations Secretariat; and Mario Cimoli, Deputy Executive Secretary of UNECLAC, at the 1st Steering Committee of the EU Facility for Development in Transition in LAC. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 23

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

The EU Regional Facility (“the Facility”) for Development in Transition is a European Union initiative implemented in partnership with the OECD, its Development Centre, and ECLAC, which was launched in May 2018. The Facility’s main objective is to have a more impactful co-operation with the LAC region: through tailored national and sub-national strategies, better measurements, and scaled-up knowledge sharing efforts, the Facility seeks to support countries – at different stages of development – in addressing specific development vulnerabilities and inequalities even as they become more prosperous.


Identifying policy drivers for sustainable and inclusive economic growth The OECD offers a variety of tools to assist Latin America and the Caribbean in identifying policy drivers that can bring the double dividend of increasing productivity and achieving inclusive and sustainable improvements in well-being. OECD economic and structural reform monitoring activities include various LAC partner countries, in addition to OECD Members. The OECD Economic Outlook, released twice a year, analyses the major trends and forces that shape the short-term economic prospects, including for Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico. A Spanish-Portuguese language version is released simultaneously for these countries. The Going for Growth publication provides a comparative overview of structural policy developments in forty countries, including the six Latin American countries mentioned above.

OECD Economic Surveys of Argentina, Brazil, Chile, Colombia, Costa Rica, and Mexico identify these countries’ main economic challenges, analyse how to promote more socially inclusive development strategies, and propose reform options, drawing on international best practices. These Surveys are widely consulted by policy makers, the press and the private sector – outreach activities and events with policy and academic audiences underline the OECD’s commitment to engage with civil society in the region. OECD Multi-dimensional Country Reviews (MDCRs) support emerging economies in formulating their development strategy by identifying key obstacles for development, formulating recommendations based on in-depth analysis and OECD best practices, and co-creating an action plan for their implementation. Argentina, Panama, Paraguay, Peru, and Uruguay have completed MDCRs and reviews of the Dominican

“Latin American economies need to raise productivity growth and make growth more inclusive to reduce inequalities.”

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Overall, this OECD work will continue to support countries in the region to identify policy reforms that can improve productivity in an inclusive and sustainable way, allowing all people to benefit from rising prosperity.

www.oecd.org/eco/ www.oecd.org/development/mdcr/

Álvaro Perreira, Director, Country Studies Branch, OECD Economics Department

2019

OECD Development Pathways

Multi-dimensional Review of Panama This MDCR is designed to help Panama formulate development strategies, and identify and support the policy reforms needed to achieve further sustainable and inclusive development. This review comes at a time when Panama is achieving high economic growth but further policy action is needed to expand socio-economic benefits across all economic sectors, regions and households.

Going for Growth

OECD Development Pathways

OECD Development Pathways

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Multi-dimensional Review of Panama VOLUME 3. FROM ANALYSIS TO ACTION

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THE OECD AND LATIN AMERICA AND THE CARIBBEAN

“Latin American economies need to raise productivity growth and make growth more inclusive to reduce inequalities. Our regular publications including Economic Surveys, the twice-yearly Economic Outlook and the Going for Growth report now cover 6 major Latin American and Caribbean countries accounting for over 80% of the region’s GDP. This continuous work at the intersection of macroeconomic and structural challenges has made the OECD a reliable partner for the region, providing in-depth analysis, policy recommendations and support for implementing reforms based on international best practice. We look forward to continuing and intensifying our collaboration with the region, supporting governments to tackle today’s policy challenges.”

Republic and El Salvador are ongoing. The MDCR process has contributed to a wide range of LAC policy discussions, such as the reform of urban transport in Lima, Peru, the discussions regarding a new public-private partnership framework in Panama, and the update of the National Development Plan of Paraguay, among others.


Promoting development co-operation and the 2030 Agenda

The LAC region is unique as most countries have a “dual” role of being providers and beneficiaries of development co-operation at the same time. Furthermore, the LAC region is the global champion of engaging in triangular co-operation. The OECD is committed to advancing the effectiveness of development efforts and delivering results that are long-lasting and contribute to the achievement of the Sustainable Development Goals (SDGs). Since 2011, the Global Partnership for Effective Development Co-operation (Global Partnership) works closely with LAC countries to provide guidance and facilitate knowledgesharing and dialogue to improve the way development actors work together to support national development priorities. Several LAC countries participate in the Global Partnership’s regular monitoring exercises, which track progress against commitments for effective development co-operation.

“Together with Chile, I had the pleasure of co-chairing the second LAC-DAC Dialogue on Development Co-operation in February 2019, which provided a unique opportunity to exchange views between Latin American and Caribbean countries and DAC members on the implementation of the 2030 Agenda for Sustainable Development and the SDGs. Financing for Sustainable Development, the scaling up of resources through and beyond ODA, as well as development in transition, triangular co-operation and multi-stakeholder partnerships were identified as key priorities for the future of development cooperation.” Susanna Moorehead, Chair of the OECD Development Assistance Committee

J From left to right: HE Mr Carlos Alfredo Castaneda, former Foreign Minister of El Salvador; HE Mr Bernd Finke, Ambassador of Germany to El Salvador, and HE Mr Andreu Bassols, Ambassador of the European Union to El Salvador. 26 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


thus building a key evidence base. The report found that innovative SII instruments such as social impact bonds are increasingly in use across Latin America.

The second LAC-DAC Dialogue on Development Co-operation was held on 21 February 2019 at the OECD and brought together 160 representatives from 21 LAC countries, as well as OECD Development Assistance Committee (DAC) stakeholders and representatives of various multilateral institutions, for a frank peer dialogue about the changing development co-operation landscape in light of the 2030 Agenda. The dialogue strengthened partnerships among LAC countries and DAC members and Peru offered to host a third meeting in Lima during 2020.

“The OECD works with Latin American and Caribbean countries on innovative development co-operation that promotes the ambitious goals of the 2030 Agenda. In 2019, OECD and Latin American and Caribbean countries focused in particular on triangular co-operation as a complement to South-South and North-South Co-operation that offers adapted, innovative and flexible solutions to today’s most pressing environmental, economic and social challenges. This work fed into the Second UN High-level Conference on South-South Co-operation (BAPA +40), held in Buenos Aires in March 2019. The OECD and Latin American and Caribbean countries also shared views on the role of development co-operation in addressing migration challenges, which have become a pressing global challenge.”

The OECD also partners with the European Commission in the EU-LAC flagship facility for triangular co-operation – ADELANTE – by jointly piloting the OECD’s Toolkit for identifying, monitoring and evaluating the value added of triangular cooperation. This peer-learning exercise highlighted that beyond the developmental and strategic objectives of the projects, creating partnerships is at the heart of triangular co-operation – this transformative modality is crucial for the achievement of the 2030 Agenda by bringing innovative and flexible solutions to development challenges. During October 2019, the OECD collaborated with the Ibero-American Programme for the Strengthening of South-South Co-operation (PIFCSS) to organise the 5th international meeting on triangular co-operation in Lisbon, Portugal. The OECD has also been working on finance for sustainable development. Social Impact Investment (SII): The Impact Imperative for Sustainable Development synthesises the latest trends in the LAC region, based on a mapping of 590 global social impact investment policies implemented by governments,

Jorge Moreira da Silva, Director, OECD Development Co-operation Directorate

Overall, LAC countries also emphasise several benefits from this engagement, such as improving dialogue with civil society and the private sector, integrating principles for effective development co-operation into national policies, and keeping development partners accountable to each other. Going forward the OECD will actively engage in the follow-up of BAPA+40.

www.effectivecooperation.org   www.oecd.org/dac/dac-global-relations/ www.oecd.org/dac/dac-global-relations/triangular-cooperation.htm

1. Antigua and Barbuda, Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Paraguay, Peru, Saint Lucia, and Trinidad and Tobago. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 27

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

In 2018, eleven LAC countries1 led this voluntary process at national level and their results are featured in the 2019 Global Partnership Progress Report and dedicated country profiles.


INCREASING PRODUCTIVITY

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INCREASING PRODUCTIVITY

Increasing the quality, relevance and coverage of education and skills training The OECD is working with Latin American and Caribbean (LAC) countries to improve education, training and skills systems to help drive economic growth, social inclusion, and greater equality in the region. Indeed, skills gaps in the Latin American and Caribbean region – where around 50% of formal firms are unable to find workers with the skills they need, compared to 36% of firms in OECD countries – pose a crucial barrier to productivity growth. The OECD can provide valuable evidence-based information to help countries improve their education and training policies.

EDUCATION Many LAC countries engage in a wide range of the OECD’s work on education: l 10

LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Mexico, Panama, Peru, and Uruguay) took part in the Programme for International Student Assessment (PISA) 2018 (results published Dec. 2019), which gauges the extent to which 15-year-old students have acquired knowledge and skills that are essential for full participation in modern societies.

Share of low- and top-performing students in Ibero-American countries - PISA 2015 % 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 -5 -10 -15

Reading – low performers Reading – top performers

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Chile

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Dominican Republic

Note: Figure shows share of students not acquiring basic level proficiency (below Level 2) and share of top performing students (Level 5 and above) in reading, mathematics and science in PISA 2015. Countries are ranked in ascending order of the percentage of students scoring below Level 2 in reading. Source: OECD (2018), Skills in Ibero-America: Insights from PISA 2015 INCREASING PRODUCTIVITY . 29


Increasing the quality, relevance and coverage of education and skills training

l An

additional 4 LAC countries (Ecuador, Guatemala, Honduras and Paraguay) participated in PISA for Development (PISA-D), which enhances the relevance of the survey to the contexts of middle and low-income countries and provides opportunities for peer-to-peer learning.

policies. It has also allowed governments to benchmark their progress against other countries and provided LAC countries with in-depth analysis, advice, and access to international networks where successful education policies and practices are shared.

l Argentina,

The OECD encourages the involvement of additional interested LAC countries within these projects and assessments to build stronger evidence bases and capacity for effective teaching, learning, and skills.

Brazil, Chile, Colombia, and Mexico participated in the 2018 Teaching and Learning International Survey (TALIS), which examines the working conditions and attitudes of teachers and school leaders to inform policies for better teaching.

www.oecd.org/education www.oecd.org/pisa http://gpseducation.oecd.org www.oecd.org/education/ceri

l Brazil,

Chile, Colombia, Costa Rica, Mexico, and Uruguay have undertaken reviews of national policies for education or thematic reviews on implementing education policies, higher education or school resources.

l Argentina,

Reviews of National Policies for Education

Rethinking Quality Assurance for Higher Education in Brazil This review examines the external systems in place to assure the quality of higher education in Brazil. It highlights the relative success of the Brazilian quality assurance model in regulating market entry for private operators in Brazil, which cater to over 70% of students. But it also calls into question the effectiveness of existing systems to monitor the quality of undergraduate programmes and institutions and the ability of public authorities to act decisively to protect students from bad quality education. The report analyses the systems that regulate the launch of new higher education institutions and programmes and evaluates quality assessment mechanisms for existing programmes and institutions. It also looks at the structures allowing public authorities to intervene to end or improve poor quality provision.

l Cities

Rethinking Quality Assurance for Higher Education in Brazil

The review offers policy recommendations. It proposes a more differentiated system of quality assurance. It also recommends significant modifications to the design and purpose of the National Examination of Student Performance (ENADE). This work was requested by the National Commission for Evaluation of Higher Education (CONAES) and CAPES, the federal body responsible for quality assurance and funding of postgraduate education.

PISA FOR DEVELOPMENT

PISA FOR DEVELOPMENT

Capacity Building Plan: Panama

CAPACITY BUILDING PLAN:

Consult this publication on line at https://doi.org/10.1787/9789264309050-en.

PANAMA

l Argentina,

Reviews of National Policies for Education

PISA for Development is an initiative of the OECD and its partners that aims to identifyThis how work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information. its Programme for International Student Assessment (PISA) can best support evidencebased policy making in emerging and developing economies – and contribute to the UNled definition of global learning goals for the post-2015 agenda. In addition the project will help to build country capacity in assessment, analysis and use of results for monitoring and improvement among participating countries. Panama is one of six countries participating in the out-of-school component of the project, and the Ministry of Education, through the ISBN 978-92-64-30904-3 PISA National Centre, is responsible for the project in the country. Panama is assessing 91 2018 18 1 P its in-school population through participation in PISA 2018. This plan covers the sixyear PISA for Development cycle (2015-2020) and includes costed learning activities related to the implementation schedule of the project in Panama. PISA for Development is technically complex, operationally demanding and statistically advanced, and the capacity building plan therefore focuses on PISA components that will allow Panama to benefit from international benchmarking and from evidence on student performance derived from multivariate analyses, while also gaining capacity and competencies to raise the quality of its own national assessments through the use of item response theory methodology, rigorous international standards of implementation and increased analysis to provide explanations for the results.

Brazil, Chile, Costa Rica and Mexico are engaged in the OECD Future of Education and Skills 2030 project, which aims to help education systems determine the knowledge, skills, attitudes and values students need to thrive in and shape their future.

Rethinking Quality Assurance for Higher Education in Brazil

in Brazil and Colombia are engaged in OECD projects to identify and assess important non-cognitive competencies, such as socio-emotional skills, creativity, and critical thinking.

Reviews of National Policies for Education

Brazil, Chile, Colombia, Costa Rica and Mexico participate in Education at a Glance, which provides internationally comparable data on the state of education, including data on education outcomes such as transition to work and participation in the labour market.

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The results from the Capacity Needs Analysis: Panama report have been used to design this capacity building plan for Panama that will be implemented by the OECD, its contractors, the Ministry of Education, and the PISA National Centre, through the PISA for Development project.

Involvement in these OECD international surveys and reviews has built capacity in the region and enabled countries to build an evidence base for effective education, teaching, and skills 30 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

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INCREASING PRODUCTIVITY

“The challenges faced by Latin America and the Caribbean are constantly evolving and becoming increasingly complex. Dealing with climate change, the digital revolution, high levels of migration, and an aging population, it is necessary to work in a coordinated and strategic manner to fulfill the Agenda 2030 in the region. In this sense, the IDB and the OECD have collaborated in different areas ranging from governance to social issues (such as education and health) to the digital economy in order to effectively and sustainably promote the reforms that our countries must undertake.”

SKILLS The OECD Skills Outlook provides an integrated approach to skills issues, bringing together comparative data on skills of students and adults and providing policy recommendations. The 2019 edition on Thriving in a Digital World aims to understand how policies that affect skills development and use can shape the outcomes of digital transformation and translate into more equally shared benefits among and within countries’ populations. Following from this, two LAC regional reports are being developed to examine the opportunities that technology offers for skills development, as well as the functioning of adult learning systems.

Luis Alberto Moreno, President of the Inter-American Development Bank (IDB)

Computer use by students’ socio-economic status – 2015 Socio-economically advantaged students

% 100

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Note: Figure shows share of students reporting that a desktop computer, laptop or tablet is available for them at school and that they use it. Source: OECD calculations based on OECD PISA database 2015 INCREASING PRODUCTIVITY . 31


Increasing the quality, relevance and coverage of education and skills training

OECD Skills Strategy projects, including those of Mexico and Peru, assess countries’ skills challenges and opportunities and develop concrete policy recommendations that lead to more effective skills systems. Stakeholders also engage in interactive workshops and meetings to ensure relevance and impact. The foundation of this approach is the OECD Skills Strategy framework, the components of which are: i) developing relevant skills over the life course, ii) using skills effectively in work and in society, and iii) strengthening the governance of the skills system. The updated 2019 OECD Skills Strategy takes account of the lessons learned from applying the original skills strategy in 11 countries since 2012, while also incorporating new OECD evidence about the skills implications of megatrends, such as globalisation, digitalisation, population ageing, and migration.

SKILLS TO SHAPE A BETTER FUTURE The OECD Skills Strategy provides a strategic and comprehensive approach for ensuring that people and countries have the skills to thrive in a complex, interconnected and rapidly changing world. The updated 2019 OECD Skills Strategy takes account of the lessons learned from applying the original skills strategy in 11 countries since 2012, while also incorporating new OECD evidence about the skills implications of megatrends, such as globalisation, digitalisation, population ageing, and migration. The Strategy also incorporates new learning from across the OECD about skills policies that work in these three broad components: developing relevant skills over the life course, using skills effectively in work and society, and strengthening the governance of skills systems.

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SKILLS TO SHAPE A BETTER FUTURE

SKILLS TO SHAPE A BETTER FUTURE

Skills in Ibero-America: Insights from PISA 2015 provides an overview of the main skills challenges facing Ibero-American countries.

OECD Skills Strategy 2019

OECD Skills Strategy 2019

Chile, Ecuador, Mexico and Peru participated in the first cycle of the OECD’s Survey of Adult Skills (PIAAC), which assesses the proficiency of the adult population in the foundational skills of literacy, numeracy, and problem solving. What specific skills challenges are Ibero-American countries facing today? What are the similarities and differences in educational performance and skills amongst the countries? What accounts for differences in performance between Latin American countries compared to spain and Portugal and how can this gap be closed? What are the main drivers of student performance? how do these skills challenges impact labour market outcomes?

www.oecd.org/skills/ www.oecd.org/skills/piaac/ www.oecd.org/skills/vet.htm

OECD Skills Strategy 2019

SkillS in ibero-AmericA InSIghtS from PISA 2015

In a knowledge-based global economy, investment in human capital is an essential component of any inclusive growth strategy. When workers lack the necessary skills, new technologies and production processes are adopted more slowly and do not translate into new growth models with higher value-added activities. however, skills affect individual’s lives and well-being far beyond what can be measured by labour-market earnings and economic growth. this is particularly relevant for Ibero-American countries as they embark on a path of structural reforms to unleash new and sustainable sources of growth.

Going forward, opportunity exists for LAC countries to engage with the OECD Centre for Skills and undertake country reviews focused on school- or work-based VET or adult learning. Countries can also join multi-country thematic reviews, exploring key challenges collaboratively.

Skills in ibero-America Insights from PISA 2015

Consult this publication on line at https://doi.org/10.1787/9789264313835-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-31382-8 81 2019 09 1 P

9HSTCQE*dbdici+ Untitled-2 1

SkillS in ibero-AmericA Inghts from PIsA 2015

OECD work on Vocational Education and Training (VET) provides support for countries seeking to equip young people and adults with the knowledge and competencies required for skilled employment. Through both multi-country thematic studies and targeted national reviews, the focus is on providing practical, evidenced advice to drive effective practice. Over the last ten years, more than fifty national reviews have been undertaken – including of Chile, Costa Rica and Peru – building considerable expertise on key aspects such as governance, funding, work-based learning, teaching, and apprenticeships. VET reviews in the LAC region focus on the need to increase the responsiveness of VET provision to labour market demand, creating more effective partnerships with employers, strengthening the quality of VET teaching, and enhancing coordination among stakeholders.

Results from PISA, TALIS and PIAAC were used to develop LAC regional studies - Teachers in Ibero-America: Insights from PISA and TALIS and Skills in Ibero-America: Insights from PISA 2015 - on key education, teaching, and skills challenges. A Skills for Ibero-America Regional Ministerial was held in February 2018 to discuss these findings with policy-makers.

07/05/2019 12:26:42

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INCREASING PRODUCTIVITY

Improving financial literacy

The OECD provides valuable evidence-based information to inform financial education and inclusion programmes in a wide range of Latin American and Caribbean countries. Governments in Latin America and the Caribbean see finan­­cial education as a valuable component of public policies to fight against informality, promote social and economic inclusion, and better manage the digitalisation of economies. Almost 45 institutions from 20 LAC countries are active members of the OECD International Network for Financial Education (INFE) and participate in the activities of the LAC Regional Network of the OECD/INFE. The LAC Network meets once a year during the annual meeting of the OECD/CVM Centre on Financial Education and Literacy in Latin America and the Caribbean, Set up in 2016 by the OECD and the Securities and Exchange Commission of Brazil (CVM), the Centre – which is based in Rio de Janeiro – provides a framework to review and monitor the implementation and evaluation of financial education policies and related OECD/INFE standards and instruments in LAC. It also informs dedicated policy analysis and research in areas of relevance to OECD/INFE members from the region.

Already through their engagement with the INFE, many LAC countries, including Argentina, Bolivia, Brazil, British Virgin Islands, Chile, Colombia, Ecuador, and Peru, have benefitted in particular from their use of the OECD/INFE instrument to measure adults’ financial literacy. In addition, Brazil, Chile, Colombia, and Peru participate in the Financial Literacy Option of the OECD Programme for International Student Assessment (PISA). Both of these methods of engagement allow for the collection and analysis of evidence to inform national strategies for financial education. Going forward, new evidence collected in LAC on the financial literacy and inclusion levels of students and adults will feed into the design and implementation of national strategies on financial education and inclusion, as well as social policies and the policies and regulations intended to support citizens facing the increasing digitalisation of financial markets.

www.oecd.org/financial/education/ www.oecd.org/finance/OECD-CVM-Financial-Education.htm

J The 2018 annual meeting of the OECD/ CVM Centre took place on the old trading floor of the Brazilian Stock and Derivatives Exchange in Sao Paulo, Brazil. High-level participants included officials and experts from ministries of finance and education, central banks, regulatory and supervisory authorities, governmental officials, as well as international organisations, the academic community, the private sector and NGOs. INCREASING PRODUCTIVITY . 33


Boosting productivity including through increased connectivity Productivity’s limited contribution to growth in LAC is key to understanding the region’s low relative income. As digital technologies increasingly permeate every aspect of economies and societies, connectivity is a critical policy lever for achieving digital transformation and boosting productivity growth in the region. The OECD is a key player in fostering dialogue on productivity issues in the LAC region, including through its annual Latin America Productivity Summit, which was hosted by Colombia in 2019, following past events in Chile and Costa Rica. The OECD Global Forum on Productivity fosters international co-operation between public bodies promoting productivity-enhancing policies and benefits from the participation of Brazil and Costa Rica. A number of LAC countries also participate in the OECD’s microdata projects that bring firm-level insights to issues of business dynamics, employment, and productivity.

BOOSTING PRODUCTIVITY AND INCLUSIVE GROWTH IN LATIN AMERICA

This publication was developed by the OECD and the IDB, in collaboration with the OECD Global Forum on Productivity, to support the discussions of the OECD Latin America and the Caribbean Regional Programme’s Ministerial Meeting on Productivity and Inclusive Growth, which took place from 5-6 December 2016 in Santiago, Chile.

Mutual dialogue between the OECD and LAC countries on productivity, digital transformation and connectivity is bringing fresh evidence and examples of good policy practice to the forefront. For example, the importance of digital issues for the LAC region was underlined during Argentina’s 2018 G20 Presidency, where the OECD supported discussions with work on bridging the digital gender divide and measuring the digital

The OECD and IDB analysis included in this publication highlights that to reignite growth and keep the momentum of social progress, governments in Latin America must focus on boosting productivity through the empowerment of all workers with skills and technology and the unleashing of innovation and entrepreneurial dynamism. The publication portrays the situation of many Latin American countries and discusses best practices. It informs the debate on future trends in Latin America towards higher productivity and more inclusive growth.

Launched at the OECD’s 2016 Ministerial Council Meeting by OECD Secretary General Angel Gurría and the President of Chile, Michelle Bachelet, the OECD LAC Regional Programme aims to support the region in advancing its reform agenda along three key priorities: increasing productivity, advancing social inclusion, and strengthening institutions and governance. For each of these priorities, the Programme, in partnership with regional international organisations, works to deliver greater availability of comparable statistics; the preparation of policy assessments; policy dialogue at a high and technical level; and support for implementation with policy advice tailored to specific needs of countries or sub-regional contexts. The Global Forum on Productivity (GFP) was launched by the OECD in 2015 to foster international co-operation between public bodies with responsibility for promoting productivity-enhancing policies. The GFP is a platform where participants convene to exchange information and data, discuss best practices and frontier-research findings, and undertake joint productivity analysis. The work programme of the GFP is guided by a Steering Committee of countries and supported by the work of the OECD Secretariat.

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Shaping the Digital Transformation in Latin America STRENGTHENING PRODUCTIVITY, IMPROVING LIVES

BOOSTING PRODUCTIVITY AND INCLUSIVE GROWTH IN LATIN AMERICA

As highlighted by the 2016 LAC Broadband Toolkit, digital connectivity is essential to underpin the region’s digital transformation, drive productivity, and empower people. The OECD’s Going Digital project offers an integrated policy framework for governments seeking to improve access and use of digital technologies, boost innovation and jobs in the digital age, and address issues of trust, social prosperity, and market openness. It is thus of strong relevance to current policy debates in the region. Shaping Digital Transformation in Latin America highlights key findings from this analysis, with an emphasis on Pacific Alliance members.

economy. In addition, the May 2019 release of the OECD Economic Outlook in Buenos Aires featured a roundtable on “Strengthening productivity in Latin America”, which gathered experts from several LAC countries to discuss policy priorities in this area.

Boosting Productivity and Inclusive Growth in Latin America

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Regional Programme


INCREASING PRODUCTIVITY

“The ties between Korea and the Latin American and Caribbean region have never been closer. The geographic distance has been overcome by a long-standing partnership at all levels. The digital transformation presents enormous opportunities to take the relationship to the next level by further promoting not only the economic, but also the people-to-people and cultural exchanges. As a member of the Advisory Board to the OECD Latin America and the Caribbean Regional Programme, Korea fully supports the evolution of the program ‘from commitment to Action’. Korea looks forward to collaborating closely with Latin American and Caribbean partner countries to contribute to transforming the region into a more prosperous, transparent and inclusive society.”

Looking ahead, discussions of possible strategies to strengthen productivity growth will continue to be a regular feature of the biennial in-depth country surveys that are prepared for Argentina, Brazil, Chile, Colombia, Costa Rica, and Mexico. Moreover, Colombia and Brazil are undertaking OECD Reviews of Digital Transformation, leveraging the OECD’s Going Digital analysis, and Brazil is also undertaking an OECD Review of Telecommunication and Broadcasting, joining past and current OECD work on the Colombian, Mexican, and Chilean telecommunications sectors.

www.oecd.org/global-forum-productivity www.oecd.org/going-digital www.oecd.org/sti/broadband/broadband-statistics

Hyoung Kwon Ko, Ambassador of Korea to the OECD

Low productivity is the main explanation behind LAC country income gaps Sources of income per capita differences vis-à-vis OECD economies, 2017 % 10 0 -10 -20 -30 -40 -50 -60 -70 -80 -90

Labour Utilisation Gap

PRY

VEN

PER

COL

BRA

LAC

DOM

Labour Productivity Gap

ARG

CRI

MEX

URY

PAN

CHL

Note: Compared to the simple average of the 17 OECD countries with the highest GDP per capita in 2017 at 2011 PPPs (in mil. 2011US$). The sum of the percentage difference in labour resource utilisation and labour productivity does not add up exactly to the GDP per capita difference since the decomposition is multiplicative. Labour productivity is measured as GDP per employee. Labour resource utilisation is measured as employment as a share of population. Source: Penn World Tables PWT 9.1, 2019. INCREASING PRODUCTIVITY . 35


Fostering innovation

Innovation can be a powerful driver of enhanced productivity and well-being, especially as promising new technologies emerge. Strengthening innovation ecosystems, implementing coherent national innovation strategies, and fostering international research cooperation to harness this potential are important policy challenges in the Latin American and Caribbean region. The OECD has worked with a number of LAC countries to assess their national innovation systems and provide recommendations to enhance the role of innovation in spurring growth and prosperity. OECD reviews of Innovation Policy have been recently conducted for Colombia, Costa Rica and Peru, and a review is now underway for Argentina. The OECD STIP Compass - which details countries’ science, technology and innovation (STI) policies - provides another helpful window for LAC countries to monitor and compare their STI performance. Data and country notes are already available for seven LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Peru).

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LAC countries are also strongly engaging in the OECD’s work on emerging technologies, with Argentina, Brazil, Colombia, Costa Rica and Peru joining OECD countries in adhering to the OECD Recommendation of the Council on Artificial Intelligence (AI). The OECD’s co-operation with LAC countries is helping build a more resilient global STI environment. The OECD is benchmarking innovation inputs and outputs in LAC countries against peers, and providing advice on policies ranging from improving the quality of human capital to honing the governance of the innovation system and boosting knowledge transfer. LAC engagement in the global dialogue on shaping the future direction of emerging technologies, including AI, will help contribute to a stable policy environment that fosters research and innovation, and harnesses STI for achieving the Sustainable Development Goals.

www.oecd.org/sti/inno/ https://stip.oecd.org/stip.html www.oecd.org/going-digital/ai/principles


INCREASING PRODUCTIVITY

Which business innovation policies are used in Latin America?* Policy instruments most frequently used, as a % of total policies: Grants for business R&D and innovation

50% 11%

Loans and credits for innovation in firms

7%

Technology transfer and business advisory services

6%

Institutional funding for public research

5%

Corporate tax relief for R&D and innovation

Beneficiaries most frequently targeted, as a % of total policies: Firms

78% 40%

Entrepreneurs

39% 37% 33%

Public research institutes Established researchers Private research and development lab

*133 active policy initiatives extracted from the STIP Compass database for Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Peru, June 2019. Based on country self-reported data. Explore and analyse STI policies now at stip.oecd.org

OECD Reviews of Innovation Policy

COsta RICa 2017

OECD Reviews of Innovation Policy COsta RICa 2017

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INCREASING PRODUCTIVITY . 37


Fostering sound competition

In the aftermath of the commodity boom, Latin American countries need strong competition frameworks to support economic growth and attract foreign investment. Laws and regulations that restrict competition can impede productivity and innovation, as well as raise prices, harming the poorest consumers in particular. Since 2001 – via its annual meetings and peer reviews – the OECD/IDB Latin American and Caribbean Competition Forum (LACCF) promotes peer to peer learning, international cooperation between competition authorities, and facilitates the dissemination of OECD standards and best practices. The Forum meets annually in a country of the region, hosted by the national competition authority. Working with the IDB, the LACCF has carried out 10+ peer reviews of LAC countries, providing them with roadmaps to strengthen their competition frameworks. “The UK welcomes and supports the OECD Latin America and the Caribbean Regional Programme and its focus on increasing productivity, enhancing social inclusion, and strengthening governance. Reinforcing sustainable development in the region, using OECD technical expertise to support improved regulation and governance, could deliver substantial benefits for both our regional partners and international trade – including for UK business. This is why we were delighted to sign a Memorandum of Understanding with the OECD during the 2019 Ministerial Council Meeting for a UK Prosperity Fund Project with Brazil, which will support that country in aligning with OECD standards across a range of different areas. A strategic approach from the OECD, alongside British bilateral work, can deliver prosperity and achieve our shared goals for Latin America and the Caribbean, and we will continue working closely with the OECD in this vital and innovative region.” Christopher Sharrock, Ambassador of the United Kingdom to the OECD 38 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

By working with the OECD, and through the LACCF’s linkages to the OECD Competition Committee and Global Forum on Competition, LAC countries contribute to the OECD’s competition knowledge and the development/revision of standards and guidelines. The OECD has also worked closely with Mexico on a variety of projects to enhance competition policy and legislation, notably through the implementation of the OECD Competition Assessment Toolkit and the Guidelines for Fighting Bid Rigging in Public Procurement. During 2018-19, a number of competition assessment reports were published on the medicines, meat, and gas sectors. The OECD is also working with Argentina to review its procurement rules in public works, and will undertake a review of the Brazilian public procurement regime. The implementation of these recommendations increases the effectiveness of public spending – it is estimated that if Mexico implements all the recommendations made by the OECD during the competition assessment project, the country will generate benefits of around MXN 10 to 44 billion in the meat and medicines sector respectively, and between MXN 2.2bn to 3.7bn in the gas sector.

www.oecd.org/competition www.oecd.org/competition/latinamerica


INCREASING PRODUCTIVITY

Enhancing the investment environment and responsible business conduct Latin American and Caribbean foreign direct investment (FDI) inflows have fallen by 20% since 2011, due to lower prices for basic export products, which have significantly reduced investment in extractive industries. The OECD stands ready to share its technical knowledge and the experiences of other OECD countries to facilitate investment policy reforms. The OECD LAC Investment Initiative has grown over the years, gathering on a biannual basis the representatives of over ten countries from the region (i.e. Argentina, Brazil, Chile,

Costa Rica, Colombia, El Salvador, Guatemala, Mexico, Peru, Paraguay, Panama and Uruguay) and the interested OECD economies. Building on this engagement, more LAC countries have expressed interest in a formal adherence to the OECD instruments on investment and undergoing OECD Investment Policy Reviews – most recently Uruguay and several Central American economies. These reviews can pave the way for countries’ eventual adherence to the OECD Declaration on International Investment and Multinational Enterprises and support on-going reform process.

The number of investment promotion agencies in LAC and OECD increased rapidly over time… 50 NUMBER OF COUNTRIES WITH NATIONAL IPAs

LAC countries

Non-LAC OECD countries

40

30

20

2015

2010

2005

1995

1990

1985

1980

1975

1970

1965

1960

1955

1950

1945

1940

1935

1930

1927

0

2000

10

…changing the institutional landscape of investment promotion globally 1970s

1990s

2010s

Source: Volpe Martincus, C. and Sztajerowska, M., 2019. “How to Resolve the Investment Promotion Puzzle – A Mapping of Investment Promotion Agencies in Latin American and the Caribbean and OECD Countries”, IDB, Washington, DC (2019). INCREASING PRODUCTIVITY . 39


Enhancing the investment environment and responsible business conduct

The Initiative’s co-operation with the IDB, CAF, the European Commission and other relevant regional players is also strong, with joint projects being realised in 2019 and beyond. The OECD-IDB Mapping of Investment Promotion Agencies (IPAs) in 21 LAC and 32 OECD economies, published in 2019, provides novel and up-to-date comparative information on the performance, opportunities, and challenges facing IPAs in the LAC region. The study has allowed for a detailed benchmarking of the agencies, facilitated discussions within the regional fora (e.g. RedIbero), and provided a basis for in-depth evaluations and support for reforms and capacity-building programmes in LAC. Responsible business conduct (RBC) is an essential part of an open international investment climate. In recognition of this, a new EU-funded project on RBC in LAC was launched in 2019 to support the adoption of RBC practices in line with the UN, ILO and OECD instruments. Within this project, the OECD will support nine LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama and Peru), seven of which are already adherents to the OECD Declaration on Investment and Guidelines for Multinational Enterprises. OECD project activities are both regional and country-specific, structured under three pillars: 1) Engaging with governments on RBC policies through the drafting of RBC policy reviews; 2) Helping business to conduct due diligence in priority sectors; and 3) Strengthening access to remedy through the reinforcement of National Contact Points. In the future, the work of the OECD on investment in the region will focus on further Investment Policy Reviews and bringing a wider group of LAC countries closer to the OECD Investment Committee, follow-up analysis on investment policy and implementation of the project on RBC.

40 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

“Canada values the deep, long-standing relationships that we have with the countries and peoples of Latin America and the Caribbean. We share connections that go far beyond geography. Canada collaborates with our partners in the region to reinforce those relationships; address social, economic and security issues; and identify opportunities to further develop trade and investment ties for mutual economic, social and cultural benefit. Through the OECD Latin America and the Caribbean Regional Programme, Canada looks forward to continuing to work with the OECD and Latin American and Caribbean countries to advance our shared objectives for the region, in particular in the areas of productivity, governance, and social inclusion.” Sharon Armstrong, Chargée d’affaires, Permanent Delegation of Canada to the OECD

www.oecd.org/corporate/mne/latin-america-caribbeaninvestment-initiative.htm www.oecd.org/investment www.oecd.org/industry/inv/responsible-business-conduct-andhuman-rights.htm

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Promoting trade and integration in global value chains

The OECD supports Latin American and Caribbean countries as they seek to move up global value chains (GVCs) and enhance the contribution of international investment and trade to their growth agendas. The OECD collaborates with countries in the LAC region on a range of trade-related issues: OECD’s trade facilitation indicators (TFIs) cover the full spectrum of border procedures for more than 160 countries, including 28 countries in the LAC region, to help governments improve their border procedures, reduce trade costs, and boost trade flows.

l The

OECD’s Services Trade Restrictiveness Index (STRI) database covers 45 countries, including Brazil, Chile, Colombia and Mexico, in 22 services sectors. The data included in the STRI database was used for a specific country study The Role of Services for Economic Performance in Brazil.

l The

OECD-WTO Trade in Value Added (TiVA) database currently covers 62 countries, including Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Peru.

l The

Both OECD and LAC partner countries benefit from the inclusion of more LAC countries in OECD databases like the STRI, TFIs, and TiVA, which enables benchmarking against a wide range of regions and countries, as well as the sharing of a diverse range of experiences. Going forward, the OECD will work to further expand the inclusion of LAC countries in its evidencegathering and analytical work. The OECD Initiative on Global Value Chains (GVCs), Production Transformation and Development provides a space for engagement where OECD and non-OECD countries share knowledge on an equal footing on how to reap the benefits of globalisation. Eleven LAC countries regularly participate, and the Dominican Republic and Peru have both hosted recent Initiative meetings.

J From left to right: Eduardo Bitran, former Executive President of CORFO; Marcela Otero, General Directorate of International Economic Relations (DIRECON), Chile; Natalia Piergentili, Deputy Minister of Economy, Chile; and Mario Pezzini, Director of the OECD Development Centre at the launch of the 2019 PTPR of Chile. INCREASING PRODUCTIVITY . 41


Promoting trade and integration in global value chains

Trade facilitation performance in LAC: OECD indicators (2017) Latest available data, where 2 = best performance Information availability 2.0

Involvement of trade community

Governance and impartiality 1.5

1.0

Border agency co-operation – external

Advance rulings

0.5

0.0

Border agency co-operation – internal

Appeal procedures

Formalities – procedures

Fees and charges

Formalities – automation South America

OECD Development Pathways

Production Transformation Policy Review of Colombia UNLEASHING PRODUCTIVITY

Colombia, the fourth largest economy in Latin America, is back on track after decades of conflict. The country is looking to open up opportunities by addressing structural challenges, further benefiting from trade and investment, and increasing productivity. Colombia’s march towards prosperity requires transforming the economy through a renewed policy approach that prioritises an expanded knowledge base, unlocks regional potential and fast tracks digital technologies. The success will depend on Colombia’s capacity to leverage its long-standing planning capacity and its ability to bring together all the relevant stakeholders.

Formalities – documents

Caribbean

Best practice (top 25% performers)

OECD Development Pathways

Production Transformation Policy Review of Chile

CHILE

REAPING THE BENEFITS OF NEW FRONTIERS

OECD Development Pathways

Since 2017, the Initiative utilises Production Transformation Policy Reviews (PTPRs) as a policy assessment and guidance tool to support economic transformation and diversification strategies. Two PTPRs have been launched in Latin America (Chile, Colombia) and one is currently ongoing (Dominican Republic). LAC countries have already taken steps in implementing the recommendations of the PTPRs: Chile is advancing a place-based approach via public-private pilot programmes in regions, and Colombia is strengthening co-ordination between its digital and economic transformation agenda. Going forward, the Initiative plans to set up mechanisms for continuous monitoring of the implementation of PTPR recommendations.

Central America

OECD Development Pathways

Production Transformation Policy Review of Colombia UNLEASHING PRODUCTIVITY

Production Transformation Policy Review of Colombia

Consult this publication on line at https://doi.org/10.1787/9789264312289-en This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

With the support of:

42 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

ISBN 978-92-64-31227-2 2019 011 P

9HSTCQE*dbcchc+

UNLEASHING PRODUCTIVITY

www.oecd.org/trade http://oe.cd/gvc www.oecd.org/trade/topics/trade-facilitation/ http://oe.cd/stri www.oecd.org/dev/global-value-chains.htm http://oe.cd/tiva

COLOMBIa

The Production Transformation Policy Review (PTPR) of Colombia provides a novel and timely assessment of the country’s industrialisation strategies. It relies on international peer learning and domestic consensus building, and benefited from knowledge sharing through the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development.

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Supporting SME development and entrepreneurship

The development of small and medium-sized enterprises (SMEs) is a marked policy priority for Latin American and Caribbean policy makers, who have identified economic growth, formalisation, and diversification as primary SME policy objectives in recent years. OECD work with Latin America and the Caribbean on this topic aims to strengthen SME policy-making as a tool for sustainable economic growth and productive development. SMEs face a variety of challenges in their development, covering multiple policy domains. In recognition of this, the OECD SME Policy Index (SME PI) is a benchmarking tool that assists emerging economies in monitoring and evaluating progress

in SME policies across various policy dimensions. The first LAC SME PI was published in 2019 and covers the four Pacific Alliance member countries (Chile, Colombia, Mexico, Peru) and three participating South American countries (Argentina, Ecuador, Uruguay). The report, which is a joint effort between the OECD and the Development Bank of Latin America (CAF), in co-operation with the Latin American and Caribbean Economic System (SELA), assesses SME policy-making strengths and weaknesses and provides guidance for future reform according to international good practices. SME PI assessments are usually repeated at regular intervals to allow for comparisons over time, and there is also interest from additional LAC countries to join future assessments.

L Regional SME policy makers, along with high-level officials from the OECD, CAF and SELA, among other organisations, launch the first SME Policy Index assessment for the LAC region in Lima, Peru on 25 April 2019. INCREASING PRODUCTIVITY . 43


Supporting SME development and entrepreneurship

Access to finance represents one of the most significant challenges for SMEs. Financing SMEs and Entrepreneurs: An OECD Scoreboard is an annual publication that covers 40+ countries, including Brazil, Chile, Colombia, Mexico and Peru – the OECD hopes to include additional countries from the region in the future. Participation by Latin American countries in the Scoreboard helps expand knowledge on debt, equity, asset-based finance and conditions for SME and entrepreneurship finance, complemented by an overview of recent policy measures to support access to finance. Brazil is also engaging with the OECD in a national SME and Entrepreneurship Policy Review. This review, which is supported by the United Kingdom Prosperity Fund, will be published at the end of 2019 and provide an in-depth assessment of the performance of the domestic SME sector (e.g. in terms of innovation and export), the quality of the business environment, and the impact of Brazilian targeted programmes for SMEs and entrepreneurs. www.oecd.org/industry/smes www.oecd.org/globalrelations/smallandmediumsizedenterprisessmepolicyindex.htm

Financing SMEs and Entrepreneurs 2019 AN OECD SCOREBOARD

Financing SMEs and Entrepreneurs 2019

Latin America and the Caribbean 2019

AN OECD SCOREBOARD

SME Policy Index

SME Policy Index

POLICIES FOR COMPETITIVE SMES IN THE PACIFIC ALLIANCE AND PARTICIPATING SOUTH AMERICAN COUNTRIES

Latin America and the Caribbean 2019

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Meeting infrastructure and transport needs

Demand for mobility will grow rapidly in Latin America. Passenger and freight transport could double by 2050 compared to 2015, and road safety is a pressing concern. Governments face the challenge of providing better mobility as a means of access to opportunities, in ways that meet environmental objectives.

Employment access via public transport: the case of Mexico City

The International Transport Forum (ITF) at the OECD acts as a transport policy think tank for its 60 member countries, which include Argentina, Chile and Mexico. ITF work in Latin America focuses on enhancing inclusion and well-being through better transport. The Benchmarking Road Safety in Latin America report analyses road safety in ten countries and offers recommendations for reducing fatalities. Links between transport and spatial inequalities in Bogotá, Mexico City, Montevideo and Santiago are the focus of another project. A further activity looks at ways to reduce transport CO2 emissions and improve air quality in Bogotá, Buenos Aires and Mexico City. Following a 2016 ports policy review for Chile, ITF reviewed strategies for the port of Buenos Aires.

As demonstrated in the figure, in Mexico City there is a territorial mismatch between high proximity to formal jobs and the locations of low-income groups, mostly located in peripheral areas.

ITF has put the OECD at the forefront of transport policy thinking in Latin America. Eleven events with ITF involvement in 201719 enhanced co-operation with LAC governments, agencies and international organisations including IDB, CAF and SEGIB. Ten LAC cities participate in ITF’s Safer City Streets network to improve urban road safety. ITF also manages the Spanish-language database for the Ibero-American Road Safety Observatory. Outreach to Latin America is an ITF priority. Three reports and five workshops on transport decarbonisation in Latin America will be developed in 2019-21. The ITF welcomes the interest of more Latin American countries in ITF membership and looks forward to increasing its work with the region.

www.itf-oecd.org

L Ángela Orozco, Minister of Transport of Colombia, shakes hands with ITF Secretary-General Young Tae Kim at the 2019 ITF Summit on “Transport Connectivity for Regional Integration”. INCREASING PRODUCTIVITY . 45


Boosting tourism

Tourism has recently become an increasingly important contributor to economic development and job creation in the Latin American and Caribbean region. The OECD assists policy makers to better shape active tourism policies to leverage growth and development potential in an inclusive and sustainable manner. The OECD Tourism Committee is a unique forum for multilateral co-operation, which aims to strengthen the role of public policy and support the sustainable economic growth of tourism through multidisciplinary action. In 2019, Peru became a Participant in the Tourism Committee after successfully collaborating with the OECD and the Statistical Office of the European Union to host participants from 39 countries at the 2018 Global Forum on Tourism Statistics in Cusco. This 15th edition of the Forum focused on regional and sub-national tourism statistics, economic measurement of tourism, the Sustainable Development Goals and sustainability of tourism, innovative sources and mobile positioning data, and measuring the activities and the impact of the collaborative economy. The OECD flagship publication OECD Tourism Trends and Policies analyses tourism performance and policy trends across 49 OECD countries and partner economies, including Chile, Mexico, Colombia, Costa Rica, Brazil and Peru. It explores how understanding the potential impacts of megatrends can better shape the future of tourism, with an emphasis on evolving visitor demands, sustainable tourism growth, enabling technologies, and travel mobility. The next (2020) edition will have a particular focus on fostering the digital transformation of SMEs in the tourism sector.

46 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

OECD Tourism Trends and Policies 2018

www.oecd.org/cfe/tourism

OECD Tourism Trends and Policies 2018

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INCREASING PRODUCTIVITY

Increasing agricultural productivity and food security In the context of rapid population growth, climate change and growing demand for a richer diet, governments are increasingly recognising the value of greater investment in research and development to raise agricultural productivity. The OECD works with the Latin American and Caribbean region to improve innovation, sustainability, and competitiveness, for both commercial and smallholder farmers alike. The OECD collaborates with several LAC countries in monitoring and analysing agricultural policies and markets: latest (2019-2028) version of the annual OECD-FAO Agricultural Outlook has a special focus on the LAC region, highlighting its growing importance in agricultural trade, as well as key regional challenges related to targeted public support,

l The

vulnerable groups and food security. Overall, the report provides supply, demand, trade, and price estimates of major agricultural commodities for 41 countries, including Argentina, Brazil, Chile, Colombia, Haiti, Mexico, Paraguay, Peru, and Uruguay. l As

of 2019, six LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico) are included in the OECD’s annual Agricultural Policy Monitoring and Evaluation report, which measures government support to agriculture for 53 countries that account for almost three-quarters of global agricultural output.

l Argentina,

Brazil, Colombia and Costa Rica have been the subjects of OECD Food and Agricultural Reviews, which provide in-depth analysis of agricultural policies in each country.

Share of exports – domestic production in Latin America and the Caribbean

% 60

2006-08

2016-18

2028

50 40 30 20 10 0

Sugar

Maize

Wheat

Rice

Oilseeds

Vegetable oil

Beef and veal

Pork

Poultry

Fish

Source: OECD/FAO (2019), “OECD-FAO Agricultural Outlook”, OECD Agriculture statistics (database) INCREASING PRODUCTIVITY . 47


Increasing agricultural productivity and food security

Through their participation in OECD analysis and reports, LAC countries benefit by taking part in a larger discussion, in which they can learn from the experiences of other countries and benchmark their best practices. The analysis informs not only domestic policy making but also the development of regional and global agricultural policy ready to take on unprecedented challenges and to benefit from exciting new opportunities. The expansion of the policy monitoring effort to LAC countries that pursue different types of producer support policies broadens the evidence base for all OECD members.

e a comprehensive assessment of agricultural policies and calculate e OECD. These indicators are regularly used in the analysis of the tries and several emerging economies. This review analyses both the main agricultural policy areas, such as trade, innovation, sustainability, provides a series of policy recommendations.

one a considerable innovation process over the last two decades. This mic and pro-active private sector often subject to policies providing nd taxes. The rapid adoption of technologies, such as improved ional innovations have contributed to increasing the Total Factor on providing such general services as research, extension, and animal as has the proactive management of risks by farmers. Nevertheless, th deforestation and the use of pesticides.

OECD Food and Agricultural Reviews

l Reviews

s in Argentina

OECD Food and Agricultural Reviews

OECD‑FAO Agricultural Outlook 2019‑2028

Agricultural Policies in Argentina

SPECIAL FOCUS: LATIN AMERICA

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48 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

www.oecd.org/agriculture

Agricultural Policy Monitoring and Evaluation 2019

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Agricultural Policy Monitoring and Evaluation 2019

OECD‑FAO Agricultural Outlook 2019‑2028

ISBN 978-92-64-31168-8 51 2019 01 1 P

Agricultural Policies in Argentina

oi.org/10.1787/9789264311695-en.

, which gathers all OECD books, periodicals and statistical databases. mation.

Building on this existing work with the LAC region, the OECD is working to develop additional spaces for targeted policy dialogue amongst regional policy makers for productive and sustainable food systems.


ENHANCING SOCIAL INCLUSION

ENHANCING SOCIAL INCLUSION . 49


Creating more and better-quality jobs

The OECD is working to support the region in improving the quantity and quality of jobs and labour market inclusion at a time of deep transformations in the world of work.

Skills have the potential to transform lives and drive economies. However, in many countries, imbalances between the supply and demand for skills lead to significant skill mismatches and shortages. Indeed, skills gaps in the LAC region – where around 50% of formal firms are unable to find workers with the skills they need, compared to 36% of firms in OECD countries – pose a crucial barrier to productivity growth. OECD tailored policy reviews on Getting Skills Right analyse the relationship between skills and labour market outcomes. The review of Chile focused on disadvantaged groups, including youth, women and the low-skilled. The review of Brazil analysed challenges faced by the adult learning system – in particular, the OECD provided concrete suggestions on how to design the newly introduced training voucher system.

EMPLOYMENT AND SKILLS The 2019 OECD Employment Outlook on the Future of Work explores how changes brought by new technologies and globalisation are rapidly reshaping how we work and live, and emphasises the need to act now to build a future that works for all. The Outlook was launched at an event in Mexico City (see photo). The new OECD Jobs Strategy, launched in late 2018, recognises that high levels of inequality, slow growth in productivity and wages, and profound labour market transformations pose major challenges for policy makers of OECD and emerging economies. It provides detailed policy recommendations across a broad range of policy areas in order to help countries address these challenges. It also features a chapter dedicated to labour market performance in emerging economies - including analysis of Argentina, Brazil, Colombia, Costa Rica and Peru.

www.oecd.org/employment www.oecd.org/skills https://futureofwork.oecd.org

Investing in Youth

PERU

Investing in Youth

The present report on Peru is part of the series on "Investing in Youth", which builds on the expertise of the OECD on youth employment, social support and skills. This series covers both OECD countries and countries in the process of accession to the OECD, as well as some emerging economies. The report provides a detailed diagnosis of youth policies in the areas of social, employment, education and training policies. Its main focus is on young people who are not in employment, education or training (the "NEETs").

PERU

Earlier reviews in the same series have looked at youth policies in Brazil (2014), Latvia and Tunisia (2015), Australia, Lithuania and Sweden (2016), Japan (2017), and Norway (2018).

Getting Skills Right

Brazil

ISBN 978-92-64-30581-6 81 2017 70 1 P

Investing in Youth PERU

Getting Skills Right

Consult this publication on line at https://doi.org/10.1787/9789264305823-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

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YOUTH One of the most relevant assets of the LAC region is its young population. Nonetheless, the region will need to make strong investments in human capital to ensure that this demographic transition translates into societal benefits. Investing in Youth Reviews assess the skills and employability of young workers, the incentives employers have to hire young people, and the role that public policy and legislation play. Investing in Youth: Peru, which was launched in Lima during April 2019, provides an integrated overview of the role of institutions and policies in helping youth to access better quality and more rewarding formal sector jobs, particularly focusing on the most vulnerable youth.

COMMUNITY AND LOCAL DEVELOPMENT Since 2009, the OECD International Summer School on Community and local development in Latin America and the Caribbean, has gathered representatives of national and subnational public institutions and private organisations

active in the field of local, community, economic and social development for a peer learning process to build capacity on innovative local social and economic development practices. The Summer School puts forward the latest OECD research, data and policy analysis on regional and local development to strengthen participants’ understanding of how to build integrated local development strategies. The latest editions have gathered more than 300 participants from across the LAC region, addressing key issues such as economic and spatial innovation; social cohesion and public policy; and international solidarity and local development. Over time, the Summer School has served as a platform to build a strong network of policy makers, administrators and practitioners from the LAC region with a common understanding of the importance and functioning of regional and local development strategies.

www.oecd.org/youth.htm http://oe.cd/summerschool

J Graduates of the 2018 OECD International Summer School on Community and local development in LAC, which took place at the OECD Centre for Local Development in Trento, Italy. ENHANCING SOCIAL INCLUSION . 51


Tackling gender inequality

Latin American countries have some of the largest gender gaps in paid and unpaid work in the world. The hours women spend caring for family members severely limit their ability to engage fully in the labour market and in society. A more gender-equal sharing of paid and unpaid work is good for the well-being of families and its individual members. It could also benefit the economy and society as a whole, as a better allocation of labour market resources can spur higher economic growth.

“The Latin American and Caribbean Region is home to many democracies that value human rights and the rule of law. The countries of the region are committed to multilateralism and actively engage with the OECD, which, for its part, benefits from this co-operation. The OECD Latin America and the Caribbean Regional Programme has been very successful in strengthening the links between the OECD and the region. Since its inception, the Programme has fed in OECD expertise to support sustainable growth and progress in many areas of interest for both sides – such as improving the business climate, greening the economy, or governance and integrity. Across all these issues, gender equality gets particular attention and is mainstreamed throughout the Programme. Germany strongly supports the Regional Programme’s objectives. They correspond with Germany’s aims to step up co-operation and mutual learning and to expand joint networks in order to promote shared values.”

The OECD is a global leader in producing internationally comparative data on gender inequalities. The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. Highlights of LAC involvement in this work include:

CROSS-COUNTRY ANALYSIS AND DATA

Martin Hanz, Ambassador of Germany to the OECD Social Institutions and Gender Index

SIGI 2019 Global Report TRANSFORMING CHALLENGES INTO OPPORTUNITIES Over the past decade, the Social Institutions and Gender Index (SIGI) has consistently shown that governments need to look at discriminatory laws, social norms and practices to achieve gender equality and promote women’s empowerment. This 2019 global report provides an overview of the main outcomes of the SIGI in relation to women and the family, their physical integrity, access to productive and financial resources and their civic rights. Building on these outcomes, this report provides a set of policy recommendations to enhance governments’ efforts to deliver their gender-equality commitments through a three-pronged approach: starting with legal reforms and transformative gender policies, enforcing laws through community mobilisation and empowerment, and learning about the efficiency of policy through monitoring.

SIGI 2019 Global Report TRANSFORMING CHALLENGES INTO OPPORTUNITIES

Consult this publication on line at https://doi.org/10.1787/bc56d212-en.

TRANSFORMING CHALLENGES INTO OPPORTUNITIES

l The

Enabling Women’s Economic Empowerment

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-53585-5

NEW APPROACHES TO UNPAID CARE WORK IN DEVELOPING COUNTRIES Enabling Women’s Economic Empowerment NEW APPROACHES TO UNPAID CARE WORK IN DEVELOPING COUNTRIES

52 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Social Institutions and Gender Index

SIGI 2019 Global Report

2019 report Enabling Women’s Economic Empowerment: New Approaches to Unpaid Care Work in Developing Countries features a detailed case study of Brazil. Overall, the report brings together existing knowledge of policy options for unpaid care work across regions, in four policy areas: infrastructure, social protection, public services and the promotion of shared responsibility within the household.

Social Institutions and Gender Index

Social Institutions and Gender Index (SIGI) is a unique tool for measuring gender-based discrimination in 180 countries, including 29 from the LAC region. The SIGI looks at gaps that discriminatory legislation, social norms and practices create between women and men in terms of rights and opportunities. It focuses on four dimensions: discrimination in the family, physical integrity, access to productive and financial resources and civil liberties.

l The

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Level of discrimination in Latin American countries – SIGI 2019 Level of discrimination

SIGI 2019

40% 35% 30%

World average

25% 20% 15% 10% 5% 0%

HTI

CHL

PRY

MEX

ECU

GTM

CRI

LAC

JAM

PER

TTO

SLV

HND

URY

BOL

BRA

NIC

DOM

COL

ESP

Note: Higher SIGI values indicate higher inequality: the SIGI ranges from 0% for no discrimination to 100% for absolute discrimination. Source: OECD (2019), Gender Institutions and Development Database, https://oe.cd/ds/GIDDB2019.

RECOMMENDATIONS ON GENDER EQUALITY l The OECD Gender Recommendation (2013) is already adhered to by Chile, Mexico, Argentina, Colombia and Costa Rica. OECD Recommendation on Gender Equality in Public Life promotes a government-wide strategy for gender equality reform and “whole-of-society” approach to reducing gender stereotypes. Chile and Mexico are the current LAC adherents.

l The

POLICY DIALOGUE l The OECD Policy Dialogue on Women’s Economic Empowerment organised a LAC regional dialogue, together with UN Women and the Government of Uruguay, in Montevideo, Uruguay during November 2018. The meeting allowed for a deeper understanding of region-specific

opportunities and challenges, and helped identify lessons learned to be replicated in other contexts. These findings were integrated into the aforementioned cross-country analysis. IN-DEPTH COUNTRY REVIEWS l Both Colombia and Costa Rica have recently undergone OECD Reviews of Labour Market and Social Policies as part of their accession processes to become members of the Organisation. Both reviews provide extensive recommendations on improving employment outcomes for women. IMPLEMENTING THE SUSTAINABLE DEVELOPMENT GOALS (SDGs) l The SIGI is an official data source for monitoring SDG Target 5.1, namely measuring “whether or not legal frameworks are in place to promote, enforce and monitor equality and nondiscrimination on the basis of sex (Indicator 5.1.1). ENHANCING SOCIAL INCLUSION . 53


Tackling gender inequality

l The

OECD works with the UN to measure progress toward SDG Target 5.c on adopting and strengthening sound policies and enforceable legislation for the promotion of gender equality and women’s empowerment. Data is collected via the regular monitoring exercises of the Global Partnership for Effective Development Co-operation – it shows that eight LAC countries, out of the nine reporting in 2018, have at least some basic elements in place to track budget allocations for gender equality and to make these allocations available publicly.

Overall, OECD work on gender equality has helped raise awareness among LAC policy makers about important policy reforms to promote gender equality and women’s empowerment. Going forward, the OECD is looking to carry out additional analyses of gender gaps in educational, social, and employment outcomes in selected Latin American countries with a specific focus on women’s disproportionate responsibility for unpaid work.

www.oecd.org/gender https://genderindex.org

“Overall, OECD work on gender equality has helped raise awareness among LAC policy makers about important policy reforms to promote gender equality and women’s empowerment.” 54 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


More than 30 million people from the Latin American and Caribbean region reside outside their country of birth and in an OECD country. Latin American and Caribbean leaders are increasingly putting international migration at the top of regional policy agendas. Flows of youth and women have gained particular attention, and intraLatin American migration is also increasingly important. The OECD supports Latin America and the Caribbean in this policy domain through rigorous monitoring, as well as comparative projects assessing migration from a development perspective. Through the Continuous Reporting System on International Migration in the Americas (SICREMI), modelled on the OECD’s Continuous Reporting System on Migration, the OECD partners with the OAS and brings together national level correspondents on a regular basis for a dialogue on migration and integration

policies. The flagship publication of the project is the regional report International Migration in the Americas, with four editions to date. It is based on rigorous, comparable and up-to-date information on migration flows and also includes monitoring of labour market outcomes of LAC countries’ emigrants to help shape appropriate integration policies in the main destination countries. As intra-regional migration increases, and in light of the increase in outflows from Venezuela, the fifth edition in 2020 will contribute to the debate on migration patterns. The expansion of the SICREMI network from nine to 19 LAC countries (plus Canada and the United States) illustrates the interest of regional governments in approaching discussions on migration based on solid data and analysis. The report is becoming a reference document for everyone looking for a recent overview of migration trends within and from the continent.

L Luis Almagro, Secretary-General of the OAS, at the launch of the 2015 SICREMI report. ENHANCING SOCIAL INCLUSION . 55

ENHANCING SOCIAL INCLUSION

Better understanding and harnessing migration flows


Better understanding and harnessing migration flows

is critical in this context and presents an important leverage in better targeting response and promoting enabling refugee policies.

The OECD also works with LAC countries on crisis and fragility. Building on the results of the OECD-UNHCR Financing Refugee – Hosting Contexts survey, four country studies are ongoing in different refugee situations, including Colombia, which is currently host to some 1.3 million Venezuelans. Promoting the right amount of finance, at the right time using the right tools,

The OECD Development Centre also recently carried out several migration and development projects in the LAC region. In collaboration with the EU, Interrelations between Public Policies, Migration and Development (IPPMD) covered ten developing countries, including Costa Rica, the Dominican Republic and Haiti, and made the case for a holistic approach to migration policy. In collaboration with the EU and the ILO, the Assessing the Economic Contribution of Labour Migration in Developing Countries as Countries of Destination (ECLM) project provided empirical evidence on the multiple ways labour migrants affect the economic development of their developing countries of destination. LAC countries involved in the project include Argentina, Costa Rica and the Dominican Republic. Finally, in collaboration with UNDP, a dashboard of indicators for measuring policy coherence for migration and development was developed for 15 countries, including Jamaica and Trinidad and Tobago.

www.oecd.org/migration/sicremi.htm www.oecd.org/development/migration-development www.oecd.org/dac/conflict-fragility-resilience/humanitarianfinancing/financing-forced-displacement.htm

How Immigrants Contribute to Developing Countries’ Economies

INTERNATIONAL MIGRATION IN THE AMERICAS SICREMI 2017

Interrelations between Public Policies, Migration and Development

How Immigrants Contribute to Developing Countries’ Economies is the result of a project carried out by the OECD Development Centre and the International Labour Organization, with support from the European Union. The report covers the ten partner countries: Argentina, Costa Rica, Côte d’Ivoire, the Dominican Republic, Ghana, Kyrgyzstan, Nepal, Rwanda, South Africa and Thailand. The project, Assessing the Economic Contribution of Labour Migration in Developing Countries as Countries of Destination, aimed to provide empirical evidence – both quantitative and qualitative – on the multiple ways immigrants affect their host countries.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

This project is co-funded by the European Union

ISBN 978-92-64-28877-5 41 2018 02 1 P 1

How Immigrants Contribute to Developing Countries’ Economies

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How Immigrants Contribute to Developing Countries’ Economies

The report shows that labour migration has a relatively limited impact in terms of native-born workers’ labour market outcomes, economic growth and public finance in the ten partner countries. This implies that perceptions of possible negative effects of immigrants are often unjustified. But it also means that most countries of destination do not sufficiently leverage the human capital and expertise that immigrants bring. Public policies can play a key role in enhancing immigrants’ contribution to their host countries’ development.


ENHANCING SOCIAL INCLUSION

Improving healthcare quality and coverage

Health system reform in Latin American countries has, until recently, largely focused on expanding coverage and access. Now, increasing attention is being paid to other aspects, such as quality, efficiency and sustainability – all issues where the OECD can provide meaningful and concrete co-operation at the regional and the national level. Public health challenges such as malnutrition (e.g. undernutrition and obesity), tobacco and alcohol consumption and mental health also require greater attention and intersectoral work.

OECD-IDB working paper Health systems characteristics: a survey of 21 LAC countries provides a comparative analysis of health systems in the region looking at health coverage and financing, health care delivery, regulation of health care supply and prices, and information on governance and resource allocation in the health system.

l The

l In

the first half of 2020, the OECD and World Bank will publish the first Health at Glance Latin America, a LAC regional edition of the OECD flagship publication. The report will provide comparable metrics on access, quality, efficiency and sustainability to underpin policy discussions on health system performance.

Since holding its first meeting in 2016, the OECD Health Systems Network for LAC has been strengthened through various regional projects:

Life expectancy at birth among OECD and Latin American countries, 1970 and 2015 (or nearest year)

74.6

73.9

MEX

BRA

72.9

74.8

74.7

COL

PER

75.7

75.2

HUN

VEN

76.5

76.2

ECU

ARG

76.5

TUR

SVK

77.0

76.6

URY

77.3

77.1

EST

78.8

78.3 CZE

POL

78.8

CRI

CHL

80.4

80.0

DNK

USA

80.5

80.4 SVN

BEL

80

1970

OECD (34)

80.8

80.7

POR

81.1

81.1 FIN

80.9

81.1 GBR

DEU

81.4

81.2 AUT

81.4

NZL

81.4 GRC

NLD

81.8

81.5

KOR

CAN

81.9

81.8

LUX

82.1

82.0 SWE

NOR

82.1 ISL

ISR

82.3

82.2

FRA

AUS

82.9

82.8 ITA

ESP

CHE

83.4

83.2

JPN

LAC country)

IRL

2015 (

Years 90

67.2

70

60

PRY

40

BOL

50

Source: OECD Health Statistics 2016, http://dx.doi.org/10.1787/health-data-en and World Bank (2016), “World Development Indicators”, retrieved from: http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators ENHANCING SOCIAL INCLUSION . 57


Improving healthcare quality and coverage

The 2019 meeting of the Network in Costa Rica brought together representatives from the health and finance ministries of 17 LAC countries to discuss the findings of a survey on health performance budgeting practices in 12 LAC countries. Presentations from countries, the Global Fund, PAHO and Harvard University also enriched the discussions. The OECD also has various tools to support LAC countries bilaterally in their health policy reform efforts: l OECD

Reviews of Health Systems identify the main challenges faced by the country health system and put forward policy options to better meet them. The review of Peru

provides policy recommendations to support Peru’s goal to attain universal health coverage by 2021 and build a highperforming health system. l OECD

Reviews of Public Health provide in-depth analysis and policy recommendations to strengthen priority areas of countries’ public health systems. The review of Chile examines how well policies are responding to relatively high obesity and smoking rates.

www.oecd.org/health www. .org/gov/budgeting/sbo-health.htm

OECD Health Working Papers No. 111

Luca Lorenzoni

Health systems characteristics: A survey of 21 Latin American and Caribbean countries

Diana Pinto Frederico Guanais Tomas Plaza Reneses Frederic Daniel Ane Auraaen https://dx.doi.org/10.1787/0e8da4bd-en

WORKING

PAPERS

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Tackling inequality and informality, including through inclusive social protection systems Although differences across Latin American and Caribbean countries exist, reductions in inequality have stagnated in recent years, highlighting the need to intensify and prioritise public policies aimed at tackling inequality, redistribution and informality. Addressing informality and strengthening social protection systems are two important pillars of a strategy to reduce inequalities.

Latin America, using the methodology of the OECD Social Expenditure Database (SOCX).The project will provide comparable social expenditure data at the programme level for 10+ countries in the region. l In

2019, the OECD Development Centre launched a database on Key Indicators of Informality based on Individuals and their Household (KIIbIH), which currently includes 28 countries – nearly half of which are in the LAC region (12) – and covers a wide range of issues in the informal economy, such as employment, demographics, mobility, vulnerability and social protection. By covering both individuals and their households, the database allows for a comprehensive monitoring of informality that captures how workers’ vulnerability is passed on to other segments of the population. It also reveals different channels through which social protection can eventually cover informal workers as part of the formalisation agenda.

The OECD Centre for Opportunity and Equality (COPE) is a platform for promoting and conducting policy-oriented research on the trends, causes and consequences of inequalities in society and the economy, and a forum to discuss how policies can best address such inequalities. The OECD is increasingly engaging with the LAC region on these issues, providing comparative data and policy analysis: l The

OECD is working with ECLAC to develop, expand and upgrade existing information on social expenditure in

Public social expenditure as a percent of GDP, 2018 or latest year available, 2000, and 1990 2018 or latest year available

25

2000

1990

20 15 10 5

HTI

KNA

GTM

PAN

GUY

DOM

HND

ECU

NIC

JAM

BHS

PER

SLV

PGY

BOL

BRB

CUB

TTO

URY

VEN

ARG

MEX

COL

CHL

CRI

BRA

OECD (36)

0

Note: There are important restrictions on the comparability of this data. For further information, see Point 11 in the Sources and Notes section of the Brochure Annex. Source: OECD (2019), OECD Social Expenditure database (SOCX), OECD (2016) Society at a Glance, OECD Social Indicators, ECLAC. ENHANCING SOCIAL INCLUSION . 59


Tackling inequality and informality, including through inclusive social protection systems

OECD working paper on Inequalities in Emerging Economies describes inequality and poverty trends in selected emerging economies, including Bolivia, Brazil, Colombia, Costa Rica, the Dominican Republic, Ecuador, Panama, Paraguay, Peru and Uruguay.

l The

www.oecd.org/social/ www.oecd.org/inclusive-growth/inequality-and-opportunity www.oecd.org/social/ministerial/

joint 2019 OECD-ILO report Tackling Vulnerabilities in the Informal Economy describes global trends in informality, including 10+ LAC countries.

l The

“Latin America has changed dramatically in the last couple of decades, with more than 60 million people climbing out of poverty and a significant reduction in income inequality. Within a context of slower economic growth and in the face of rising expectations on the side of the new middle classes, the region needs to enhance the quality of its institutions and public policies, striving to avoid reversals in its social gains, while at the same time diversifying its productive matrix, increasing productivity, boosting innovation and transitioning towards knowledge-based economies. Regional integration will be essential for this purpose, as well as a discussion on the different forms it is adopting. The IberoAmerican General Secretariat (SEGIB) is proud to work alongside the OECD and the LAC Regional Programme in these endeavours.”

Strategies for tackling informality are also discussed in-depth in the country economic surveys of Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico. Labour market inequalities, between those with formal contracts and access to social protection, and those without, are a complex challenge for policy makers. Reducing them durably often requires looking beyond the realm of a single ministry and adopting an economy-wide view, for which OECD Economic Surveys are uniquely placed. OECD analysis has shown how a mix of different policy approaches can reduce these inequalities, including better incentives for firms to operate in the formal economy, modernising labour regulations, taxes and social contributions and more effective enforcement of labour laws. The OECD also provides specific support in the area of pensions. The 2019 edition of Pensions at a Glance will provide various pension indicators in Argentina, Brazil, Chile, Colombia and

Rebeca Grynspan, Ibero-American Secretary-General

OECD Reviews of Pension Systems

ty in the Informal Economy

global debate on the transition from the informal to the formal ces of informality in a large sample of countries representing diverse opment; 2) by presenting new empirical evidence on the links between ; 3) by assessing risks and vulnerabilities in the informal economy, which can be mitigated with social protection and appropriate risk that the transition to formality is a complex issue that touches on a

Development Centre Studies

s

rmally employed and contribute to economic and social development that are not protected, regulated, well-recognised or valued. This nformality and the vulnerability prevailing in the informal economy. of workers in the informal economy based on the ILO indicators of tors of Informality based on Individuals and their Household (KIIbIH).

PERU This review assesses Peru’s pension system in its entirety, looking at both public and private, pay‑as‑you‑go (PAYG) financed and funded pension provisions. The review then provides policy options to help tackle old‑age poverty; establish a solid framework for the contributory pension system to meet its objectives; improve the coverage and level of pensions; and optimise the design and improve the regulation of the funded private pension component. A further goal of these proposals is to improve the Peruvian population’s trust that the country’s pension system will be able to deliver secure retirement income in old age.

Development Centre Studies

Tackling Vulnerability in the Informal Economy

OECD Reviews of Pension Systems

PERU

The review is the fifth in a series of country reviews of pension systems [Ireland (2014), Mexico (2016), Latvia (2018), and Portugal (2019)]. These reviews provide countries with policy options that will help them improve functioning of their overall pension system. Tailored policy options are proposed based on the specificities OECD Statistics Working the Papers 2018/13 of the national pension system, and on international best practices regarding reforms, design and regulation of pension systems.

Inequalities in emerging economies: Informing the policy dialogue on inclusive growth

Carlotta Balestra

Ana Llena-Nozal Fabrice Murtin

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Elena Tosetto Benoît Arnaud https://dx.doi.org/10.1787/6c0db7fb-en

PAPERS

Consult this publication on line at https://doi.org/10.1787/e80b4071-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

2019

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ISBN 978-92-64-44783-7

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OECD Reviews of Pension Systems PERU

ISBN 978-92-64-77943-3

WORKING

Tackling Vulnerability in the Informal Economy

oi.org/10.1787/939b7bcd-en.

y, which gathers all OECD books, periodicals and statistical databases. mation.

d by

Mexico, including the modelisation of future pension levels. The OECD also recently published specific reviews for Brazil and Peru to support government reform efforts.


STRENGTHENING GOVERNANCE AND INSTITUTIONS STRENGTHENING GOVERNANCE AND INSTITUTIONS . 61


Improving revenue collection and fiscal management

CUB

31%

BRA

BRB

to less than DOM

The LAC region relies more on taxes on goods and services than the OECD

33%

OECD

14%

PRY

50%

LAC

Favourable global oil market allowed hydrocarbon revenues to remain at their 2016 level

GTM

as % of total tax revenue

2016 .......................... 2017

2.3% of GDP

Co-funded by the European Union

Source: (OECD/ECLAC/CIAT/IDB, 2019) Revenue Statistics Estadísticas tributarias Revenue in Latin American in LatinStatistics America en América Latina y el Caribe and the Caribbean and Caribbean 2019 AVAILABLE ON LINE/DISPONIBLE EN LÍNEA

1990-2017

SPECIAL FEATURES: FISCAL REVENUES FROM NONRENEWABLE NATURAL RESOURCES IN LATIN AMERICA AND THE CARIBBEAN PROPERTY TAX IN LATIN AMERICA

This report compiles comparable tax revenue statistics over the period 1990-2017 for 25 Latin American and Caribbean economies. Based on the OECD Revenue Statistics database, it applies the OECD methodology to countries in Latin America and the Caribbean to enable comparison of tax levels and tax structures on a consistent basis, both among the economies of the region and with other economies. This publication is jointly undertaken by the OECD Centre for Tax Policy and Administration, the OECD Development Centre, the Inter-American Center of Tax Administrations, the Economic Commission for Latin America and the Caribbean (ECLAC) and the Inter-American Development Bank. The 2019 edition is the first to be produced with the support of the EU Regional Facility for Development in Transition for Latin America and the Caribbean, which results from joint work led by the European Union, the OECD and its Development Centre, and ECLAC.

SECCIONES ESPECIALES: INGRESOS FISCALES PROVENIENTES DE RECURSOS NATURALES NO RENOVABLES EN AMÉRICA LATINA Y EL CARIBE IMPUESTO A LA PROPIEDAD EN AMÉRICA LATINA La publicación compila ingresos tributarios comparables para el período 1990-2017 para 25 economías de América Latina y el Caribe. Se fundamenta en la base de datos de estadísticas tributarias de la OCDE y aplica la metodología de la OCDE a los países de América Latina y el Caribe para permitir la comparación de los niveles impositivos y las estructuras impositivas de manera consistente, tanto entre las economías de la región como con otras economías. Esta publicación es realizada conjuntamente por el Centro de Política y Administración Tributaria de la OCDE, el Centro de Desarrollo de la OCDE, el Centro Interamericano de Administraciones Tributarias, la Comisión Económica para América Latina y el Caribe (CEPAL) y el Banco Interamericano de Desarrollo. La edición 2019 es la primera que se produce con el apoyo de la Facilidad Regional para el Desarrollo en Transición, liderada por la Unión Europea (UE). Dicha Facilidad es una iniciativa conjunta de la UE, la OCDE y su Centro de Desarrollo y la CEPAL.

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Revenue Statistics in Latin America and the Caribbean Estadísticas tributarias en América Latina y el Caribe 1990-2017

1990-2017

2019

1990-2017

2019

LA

1990-2017

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62 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

from over

Tax-to-GDP ratios varied widely across the 24 countries

1990-2017

www.oecd.org/ctp/tax-global www.oecd.org/tax/tax-global/the-lac-fiscal-initiative.htm

in 2017 an increase of 0.2 percentage points from 2016

Revenue Statistics in Latin America and the Caribbean Estadísticas tributarias en América Latina y el Caribe

This analysis thus allows LAC countries to access the same standard of data used by OECD countries to inform their own country, cross-country and regional tax policy analyses, reforms and international dialogue. They have been used in the design of policy reforms in many LAC countries, including fiscal rule reforms and structural tax reforms.

22.8%

2019

LAC Fiscal Forum discussions are underpinned by statistical and analytical works, based on data collected through internationally comparable methodology. Revenue Statistics in LAC, an annual joint effort by CIAT, ECLAC, the IDB and the OECD, with the support of the EU Regional Facility for Development in Transition in LAC, provides detailed, comparable, reliable and timely tax revenue data spanning nearly three decades for 25 LAC countries. Special features provide policy-relevant analyses of these data on issues of particular interest to the region, e.g. resource revenues.

The tax-to-GDP ratio in Latin America and the Caribbean grew

U

NCH

N

The LAC Fiscal Initiative provides a forum for policy dialogue on fiscal issues where officials from LAC countries exchange ideas and best practices with experts from relevant OECD committees and other regional and international organisations, such as the Inter-American Center of Tax Administrations (CIAT), ECLAC, the IDB, the World Bank Group and the International Monetary Fund. Each year, the Initiative hosts a Forum in the LAC region.

Revenue Statistics in Latin America and the Caribbean 2019

IO

Fiscal systems in the Latin American and Caribbean region fail to provide sufficient resources to overcome economic and social challenges and are relatively less efficient in improving income redistribution. The OECD helps to improve taxation and public expenditure policies in Latin America and the Caribbean, in this way supporting economic growth and income redistribution in the region.

VE S R


STRENGTHENING GOVERNANCE AND INSTITUTIONS

Enhancing tax transparency and compliance Enhancing tax transparency and compliance through international co-operation is key to tackling tax evasion and profit shifting. This is essential in strengthening the revenue-raising capacity of Latin American and Caribbean countries and restoring taxpayers’ trust in government and the fairness of the tax system. The OECD supports Latin American and Caribbean countries in their efforts to implement international tax transparency standards and to strengthen their co-operation within the region. The Global Forum on Transparency and Exchange of Information for Tax Purposes (GFTEOI) and the Multilateral Convention on Mutual Administrative Assistance in Tax Matters have been instrumental in enabling LAC and other jurisdictions to strengthen their capacity to fight tax evasion and avoidance through information sharing. As of July 2019, 36 of the GFTEOI’s 154 members are LAC economies, 19 of which started automatically exchanging financial account information in 2018 in accordance with OECD standards. 33 LAC jurisdictions participate in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters The OECD/G20 BEPS Project has produced a single set of international tax rules to address tax avoidance by multinational enterprises. This protects the tax base of countries where the economic activity and value creation takes place, and offers certainty and predictability to taxpayers. 30 LAC jurisdictions are members of the OECD/G20 Inclusive Framework on BEPS implementation, which allows members to engage in the global efforts to tackle BEPS on an equal footing. The current focus is on designing a solution to the tax challenges of the digitalisation of the economy. Going forward, events in the LAC region on this issue will further facilitate the engagement of LAC countries in this debate.

L OECD Latin America Ministerial Roundtable for Ministers of Finance on “Leveraging International Tax Co-operation for Public Good” on 19 November 2018, which resulted in the signing of the Punta del Este Declaration.

the effective use of information exchanged under international standards not only to tackle tax evasion and avoidance, but also corruption and other financial crimes. This initiative strengthens the regional consensus on a “whole of government” approach to tax evasion and corruption in the region. Capacity building activities are carried out regularly with LAC jurisdictions for the implementation of the tax transparency and BEPS standards. For example, established in 2018, the OECD Latin America Academy for Tax and Financial Crime Investigation in Buenos Aires, Argentina, trains officials from various agencies to better prevent, detect and address cases of tax evasion, corruption, money-laundering and terrorism financing. The OECD/UNDP Tax Inspectors Without Borders tax audit assistance programme also operates in the LAC region.

www.oecd.org/tax/beps www.oecd.org/tax/transparency www.oecd.org/tax/crime

The Punta del Este Declaration signed by 8 LAC countries on 19 November 2019 sets out the Latin American initiative to maximize STRENGTHENING GOVERNANCE AND INSTITUTIONS . 63


Efficient public procurement and budgeting

Budgetary governance has a major impact on public spending efficiency, fiscal space and the capacity to align public spending with government priorities. The OECD has worked with countries in the Latin American and Caribbean region on these issues for over 15 years, and also supports efforts towards the implementation of public procurement policies and strategies in the Latin American and Caribbean region, in order to promote value for money and to support strategic activity throughout the procurement process. PUBLIC PROCUREMENT Public procurement is increasing in significance within the LAC region. The OECD continues to support the implementation of strategic procurement at both central and sub-central level throughout LAC countries. This includes: l Revamping

national procurement systems in Peru and Chile;

l Applying

the revised 2018 Methodology for Assessing Procurement Systems (MAPS) to five Organisation of Eastern Caribbean States (OECS);

ific reviews of government efforts to make the public o citizens’ needs and expectations. Publications enting corruption and promoting integrity stitutions, and civil service reform. Country-specific government objectives and preparedness a country's public administration works, reviews ps between levels of government and with citizens and the impact of information technology on the work ens.

OECD Public Governance Reviews

stem

H STAKEHOLDER ENGAGEMENT

OECD Public Governance Reviews

Mexico’s e-Procurement System REDESIGNING COMPRANET THROUGH STAKEHOLDER ENGAGEMENT

CompraNet, assesses the system’s ability to ensure nsparent and accountable. It measures CompraNet’s curement in order to guide its future development. h as contracting authorities, suppliers and civil as legislation, policy, training, and infrastructure,

OECD books, periodicals and statistical databases.

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789264287426-en.

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64 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

l Supporting

changes to procurement frameworks such as the redesign of Mexico’s e-procurement system (CompraNet) and reviewing the Mexican Social Security Institute’s (IMSS) procurement practices.

LAC countries are acting on OECD recommendations: 26 LAC countries have implemented more than half of the actions from the OECD Recommendation on Public Procurement, according to a 2018 study by the IDB. This increases the effectiveness of public spending. For example, following the implementation of the recommendations made in the OECD review of IMSS in Mexico, medicine procurement increased by 18% between 2012 and 2017 using the same amount of funding. The application of MAPS has increased awareness of the challenges and opportunities facing procurement systems in LAC countries - the OECD assessment of five OECS states proved pivotal in increasing regional co-operation on public procurement, as well as improving the states’ procurement systems.


Since 2000, the OECD has engaged with LAC countries on budgetary issues via the OECD-IDB Latin America and the Caribbean Senior Budget Officials Network (LAC SBO), fostering policy dialogue and collecting comparative data in the areas of budget and public expenditure efficiency. This includes:

This analytical work has fostered policy dialogue beyond the annual LAC-SBO meetings, promoting country-to-country engagement. The work of the network also supported budgetary practices at the subnational level with the first budget review of a subnational government carried in the State of Oaxaca, Mexico.

dialogue between LAC budget directors and other budget officials – each year, the Network holds a meeting in the LAC region;

Going forward, with the development of a more robust budgetary framework, new and more complex issues arise, such as the use of performance information to improve budget allocation, the need to include gender and green perspectives in the budget process, and the need to strengthen the capital budgeting and infrastructure framework. OECD experiences are extremely helpful to pursue the reform agenda and ensure implementation of good practices in these areas.

policy reviews, such as Budgetary Governance Country Reviews of Chile, Uruguay, Argentina and Oaxaca, Mexico, and a Performance Budget Review of Chile.

www.oecd.org/gov/ethics/public-procurement.htm www.oecd.org/governance/procurement/toolbox www.oecd.org/gov/budgeting/

implementation of the 2019 OECD Budget Practices and Procedures Survey in the LAC region;

l The

l Annual

l Country

L Participants at the 15th LAC Senior Budget Officials Network meeting - June 2019, Madrid, Spain. STRENGTHENING GOVERNANCE AND INSTITUTIONS . 65

STRENGTHENING GOVERNANCE AND INSTITUTIONS

BUDGETING


Enhancing integrity and combatting corruption

Corruption and violations of integrity standards continue to plague countries all over the word, undermining trust in institutions and inclusive growth. In recent years, Latin American and Caribbean countries have prioritised the fight against corruption and the promotion of a culture of public integrity for good governance. LAC countries are strengthening their adherence to OECD integrity and anti-corruption standards. Both Costa Rica and Peru adhered to the OECD Anti-Bribery Convention during 201718: the OECD Working Group on Bribery will closely monitor their implementation efforts to ensure a level playing field in the region. Various LAC governments have also demonstrated their commitment to strengthening their public integrity systems by undertaking OECD Integrity Reviews at national and subnational level (Argentina, Colombia, Mexico, Peru, Mexico City, Nuevo León, Coahuila). Partnering with development cooperation agencies from Germany, Switzerland and Sweden, the

OECD also provides implementation support in specific areas of integrity policies, such as Integrity Offices in Peru, or the strengthening of local integrity systems in Colombia and Peru. To further support governments in this effort, the 3rd High Level Meeting of the OECD LAC Regional Programme (Lima, Peru, 18-19 October 2018) proposed an Action Plan on Integrity for Good Governance in LAC. The Action Plan consists of a comprehensive agenda covering 10 policy areas to help countries design and implement integrity and anti-corruption strategies and policies, improve the overall governance framework in the region and turn into concrete actions the “Lima Commitment”, endorsed at the Summit of the Americas in April 2018, as well as other relevant anti-corruption commitments. As follow up, several countries, including Colombia, Costa Rica, Ecuador and El Salvador, have approached the OECD Secretariat in search of support in the design and implementation of their integrity and anti-corruption strategies.

J Inaugural meeting of the Latin America & Caribbean Law Enforcement Network (LAC LEN) in Buenos Aires, Argentina – October 2018. 66 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


The OECD-IDB Network for Integrity in LAC shapes the policy debate and enables the exchange of good practices and lessons learned from policy implementation at the national, regional, and international level. Since its creation in 2017, the Network has held annual meetings in the region, including back-toback with the 3rd High Level Meeting of the OECD LAC Regional Programme on “Integrity for Good Governance in LAC”. As a result of this Network, the OECD published in 2019 the first edition of Public Integrity in LAC 2018-2019, based on quantitative and qualitative evidence, studies and country

FROM COMMITMENTS TO ACTION

The OECD Integrity Review of Argentina assesses recent efforts to transform Argentina’s integrity framework from isolated initiatives into a coherent whole-of-society integrity system. The Review presents concrete actions for developing an integrity strategy to sustain current reforms. The Review also provides insights into how to operationalise a risk management approach to corruption and upgrade the internal audit function within government. Finally, the Review assesses the government decision-making process and provides options for increasing its transparency and integrity for more accountable and equitable policies.

www.oecd.org/gov/ethics www.oecd.org/daf/anti-bribery “We reiterate our commitment to maintain and strengthen our co-operation with the OECD within the framework of the OECD Latin America and the Caribbean Regional Programme, an essential instrument to support countries in the implementation of the Lima Commitment on integrity and the fight against corruption. In this regard, we welcome the OECD as a new member of the Joint Summit Working Group, a key instance of the Summits of the Americas Process.” Luis Almagro, Secretary General of the Organization of American States

OECD Public Governance Reviews

OECD Public Governance Reviews

OECD Integrity Review of Argentina ACHIEVING SYSTEMIC AND SUSTAINED CHANGE

OECD Integrity Review of Mexico City UPGRADING THE LOCAL ANTI-CORRUPTION SYSTEM This report provides an assessment of Mexico City’s Local Anticorruption System (LACS). Based on international best practices and the OECD Recommendation on Public Integrity, the report reviews the institutional and co-ordination arrangements of the LACS; its regulatory framework; and the tools, programmes and processes necessary for a strategic approach to public integrity. It provides concrete suggestions for enhancing the design and implementation of the system, including cultivating a culture of integrity in government, the private sector and society; improving internal control and risk management; and upgrading public procurement policies to ensure value for money. If effective, the LACS has the potential not only to improve governance, deter corruption and boost citizen’s trust in Mexico City, but also to influence the integrity culture in the country as a whole.

ISBN 978-92-64-30790-2 04 2018 17 1 P

9HSTCQE*dahjac+

OECD Integrity Review of Mexico City UPGRADING THE LOCAL ANTI-CORRUPTION SYSTEM

Consult this publication on line at https://doi.org/10.1787/9789264306547-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-30653-0 04 2018 14 1 P

UPGRADING THE LOCAL ANTI-CORRUPTION SYSTEM

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ACHIEVING SYSTEMIC AND SUSTAINED CHANGE

FROM COMMITMENTS TO ACTION

Consult this publication on line at https://doi.org/10.1787/g2g98ec3-en.

OECD Public Governance Reviews

OECD Integrity Review of Mexico City

OECD Integrity Review of Argentina

Integrity for Good Governance in Latin America and the Caribbean

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OECD Public Governance Reviews

OECD Integrity Review of Argentina

OECD Public Governance Reviews

OECD Public Governance Reviews ACHIEVING SYSTEMIC AND SUSTAINED CHANGE Integrity for Good Governance in Latin America and the Caribbean

projects of the OECD in the region, as well as responses to the OECD Survey on Public Integrity in Latin America 2018-19. The next edition of the OECD-IDB Government at a Glance: Latin America and the Caribbean (LAC-GaG) publication series, which will be launched during the first half of 2020 and contain data from 27 LAC countries, will provide further information, as its policy chapter will focus on how to improve transparency and integrity to foster reforms that promote trust in government and are conducive to economic growth.

9HSTCQE*dagfda+

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STRENGTHENING GOVERNANCE AND INSTITUTIONS

The OECD has also recently established new policy dialogue mechanisms on these topics with the region. The OECDLatin America Anti-Corruption Initiative, established in 2007 with the support of the IDB and the OAS, aims to promote and strengthen implementation of the OECD Anti-Bribery Convention. In 2018, it held the inaugural meeting of the Latin America & Caribbean Law Enforcement Network (LAC LEN) in Buenos Aires, Argentina, bringing together more than 50 law enforcement officials from 14 countries. The Network aims to equip law enforcement authorities in the region with the necessary tools and knowledge to effectively investigate and prosecute complex transnational corruption cases – its second meeting took place during Sept. 2019 in Brasilia, Brazil.


Fostering open government

Latin American and Caribbean countries have initiated an ambitious move from open government to what the OECD has termed an “Open State” by diffusing the principles of transparency, integrity, accountability, and stakeholder participation to all levels of government and branches of power.

The OECD also provides country-tailored support via Open Government Reviews, which were recently completed for Costa Rica and Argentina, as well as assessments of policies and practices in Peru, Paraguay and Colombia. A review of the Argentinian Province of Santa Fe is forthcoming, as well as an OECD Handbook on Open Government and Stakeholder Participation in Peru.

The OECD has collaborated closely with a growing number of LAC countries since 2013 on open government issues. Open Government in Latin America (2014) represented the first-ever stocktaking exercise of open government strategies and initiatives in the region and resulted in the creation of the OECD Network on Open and Innovative Government in LAC. At their 2018 meeting in Brazil, Network members signed the “Brasilia Declaration”, committing to continue promoting policy dialogue and exchange of good practices among countries and with civil society, subnational governments and international organisations.

The combination of this policy dialogue and analysis has ensured national and international visibility of open government reform efforts and contributed to ensuring continuity and sustainability of countries’ open government agendas. The implementation of policy recommendations and the capacity-building support the OECD has provided have resulted in notable outcomes, such as the first-ever Open State Agreement in Costa Rica.

www.oecd.org/gov/open-government-in-latin-america-andcaribbean.htm

Main challenges to implement Open Government initiatives OECD PUBLIC GOVERNANCE SCAN

COLOMBIA

Insufficient awareness of the benefits of open government reforms among public officials

On enhancing administrative capacity at the sub-national level for better planning and open government

General resistance to change / reforms in the public sector

OECD Public Governance Reviews

Lack of or insufficient financial resources

OECD Public Governance Reviews

Open Government in Argentina

Culture of secrecy, lack of open government culture in the public sector

% 0

10

20

30

40

50

60

70

80

Source: OECD (2016), Open Government: The Global Context and the Way Forward 68 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

90

Open Government in Argentina

OECD35 LAC13

Lack of trust (between government and citizens / NGOs)

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The OECD is supporting several countries in the region to improve their public governance systems. Through indepth reviews and implementation programmes, the OECD works with national governments to assess the efficiency of their public administration and governance practices. The OECD-IDB Government at a Glance: Latin America and the Caribbean (LAC-GaG) publication series allows LAC countries to benchmark against each other and OECD countries, expanding countries’ knowledge base and that of the OECD, as well as disseminating good governance practices in the region. The third edition will be launched during the first half of 2020 and will contain data from 27 LAC countries, covering the areas of public finance and employment, key institutions (centres of government), budgeting practices, integrity, regulatory governance, human resources management, and open government data. Its policy chapter will focus on how to improve

transparency and integrity to foster reforms that promote trust in government and are conducive to economic growth. OECD Public Governance Reviews (PGRs) in the LAC region are ongoing for Haiti, following the reviews that have been already been carried out for Colombia, Costa Rica, Paraguay, and Peru. These reviews assess the strengths and weaknesses of a country’s public administration and governance practices, and help governments to design their reform agendas. The OECD also provides implementation support following these reviews. Currently, the OECD is supporting Peru with various tools (capacity-building programmes, study visits, roadmaps) in the implementation of various public governance reforms, as well as Colombia in strengthening sub-national governments’ administrative capacity.

www.oecd.org/governance www.oecd.org/gov/publicgovernancereviews.htm www.oecd.org/gov/government-at-a-glance-lac.htm

Government at a Glance Latin America and the Caribbean 2017

Government at a Glance: Latin America and the Caribbean 2017

OECD Public Governance Reviews

OECD Public Governance Reviews

Paraguay PuRsuinG natiOnal DEvElOPmEnt thROuGh intEGRatED PubliC GOvERnanCE

Paraguay PuRsuinG natiOnal DEvElOPmEnt thROuGh intEGRatED PubliC GOvERnanCE

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Improving public governance


Promoting inclusive regional and urban development Latin America and the Caribbean is one of the most urbanised regions in the world, with cities hosting 81% of its inhabitants, and accounting for 2/3 of its GDP. However, while its rapid urban transition stimulated economic development, it also exacerbated socio-economic and spatial inequalities and environmental vulnerability. Today, the region is therefore acutely aware of the importance of promoting more sustainable and inclusive cities and regions for national and global development goals. This will require effective policy making at all levels of government to ensure that regions and cities can mobilise their growth potential URBAN AND REGIONAL DEVELOPMENT The OECD is actively engaging with LAC countries to address urban policy challenges and support sustainable, inclusive, safe, and resilient urban development. This engagement supports regional processes, such as the region’s Action Plan for the Implementation of the New Urban Agenda in LAC 2016-2036. Through the National Urban Policy Programme – an initiative launched at Habitat III by the OECD, UN-Habitat and Cities Alliance to support National Urban Policy (NUP) development – the OECD, in close cooperation with MINURVI, will assist with the development and review of LAC countries’ NUPs, as key instruments for the implementation of global urban-related agendas. Mayors of Latin American cities from various countries, including Argentina, Brazil, Colombia, Chile, and Mexico, have strong representation in the OECD Champion Mayors Initiative. These mayors participate in annual meetings, help build the evidence base of effective local action to bridge climate change and inclusive growth, and contribute to building local innovation capacity by participating in unique surveys. Findings supported the publications Financing climate objective in cities and regions to deliver sustainable and inclusive growth and Enhancing Innovation Capacity in Cities. Going forward, the Initiative will 70 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

be working closely to identify mayors currently in office of LAC cities that are particularly focused in tackling inequality, building a regionally focused body of work to make sure that opportunities and challenges that specifically speak to this context are highlighted. The OECD has also launched a specific Mining Regions and Cities Project focused on delivering regional development for regions and cities specialised in mining and extractive industries – Chile, Colombia, Mexico and Peru are participating from the LAC region, along with a number of other OECD member and partner economies from around the globe. The Province of Córdoba (Argentina) and the State of Paraná (Brazil) are also taking part in the OECD’s programme on a Territorial Approach to the Sustainable Development Goals: a Role for Cities and Regions to Leave No one Behind.

L Silvina Rivero, Secretary General of the Province of Córdoba, Argentina, sharing how the province is using the SDGs to develop a vision towards 2030 for the sustainable development of the province - Global Sustainable Technology & Innovation Conference (G-STIC) – Nov. 2018 in Brussels, Belgium.


In addition, several LAC countries are involved in the development of multi-level governance indicators on public investment that will help provide a comprehensive picture of the main strengths and challenges of their multi-level governance systems. The 2019 OECD-United Cities and Local Government (UCLG) report on the World Observatory on Subnational Government Finance and Investment includes comparable information and data on multi-level governance frameworks and reforms, subnational government organisation and finance for 18 LAC countries.

National and metropolitan-level urban policy reviews provide a comprehensive assessment of how each country’s system of cities is performing, and offer recommendations to improve the success of a range of relevant policies by applying an urban lens to them. OECD members Chile and Mexico have undertaken these reviews at both national and various metropolitan levels. OECD territorial policy reviews identify strengths, challenges and policy priorities for inclusive regional development. Several of these studies have been carried out in LAC countries, including recent reviews of Hidalgo and Morelos, Mexico - both reviews also engaged international peer-reviewers to share knowledge from other OECD countries. Building on these reviews, the OECD provides implementation and monitoring support, based on its recommendations.

www.oecd.org/cfe/regional-policy/multi-levelgovernance.htm

OECD Multi-Level Governance Studies

Asymmetric decentralisation: Policy implications in Colombia

www.oecd.org/governance/regional-policy/urbandevelopment.htm www.oecd.org/cfe/regional-policy/ www.oecd.org/cfe/territorial-approach-sdgs.htm www.oecd-inclusive.com/champion-mayors/ OECD Territorial Reviews

MULTI-LEVEL GOVERNANCE AND DECENTRALISATION HIDALGO, MEXICO

OECD Territorial Reviews

Hidalgo is one of the smallest states in Mexico. It benefits from its close proximity to Mexico City and contains a number of economic and environmental assets in its territory. After a long period of economic stagnation, the state is now closing up the gap with national standards. Yet, productivity and income levels remain low with respect to national levels, and there exist high socio-economic disparities between the south of the state and the municipalities in the northern and mountainous area. This review looks at how the state of Hidalgo is seeking to boost its economy, particularly through a series of institutional reforms and policies to improve the business environment. It highlights opportunities to accelerate the economic convergence and transit towards high-value added economic sectors. The review also identifies a number of recommendations to promote inclusive growth and reduce its north-south divide and offers suggestions to address governance challenges in the territory.

Consult this publication on line at https://doi.org/10.1787/9789264310391-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

2019

HIDALGO, MEXICO

OECD Territorial Reviews HIDALGO, MEXICO

The OECD is also actively engaging with LAC countries to support multi-level governance and decentralisation reforms through various in-depth studies, notably Making the Most of Public Investment in Colombia, Making Decentralisation Work in Chile and Asymmetric decentralisation: Policy implications in Colombia. The OECD also fosters policy dialogue on these topics, organising an event on “Productivity and Territories” in Chile during 2017 and a seminar on Asymmetric Decentralisation in Colombia (2018). 9HSTCQE*dbadie+ Overall, this engages LAC countries in OECD standard-setting,

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with Brazil officially adhering to the OECD Recommendation on Effective Public Investment Across Levels of Government in 2018.

Overall, the engagement of LAC countries and cities in these broader projects also enables the OECD to understand and develop more diverse policy strategies for LAC contexts, which can in turn enrich its work in other regions.


Improving water governance

Access to water is a cornerstone for development and a strong engine for reducing inequalities in Latin American and Caribbean countries. It has a significant impact on health, food and energy production, and housing. As such, water governance is instrumental for ensuring that water policies are effectively and efficiently delivered so as to secure access to water for all, and therefore contribute to economic growth, social well-being, and environmental sustainability in the region.

CNRH Approval

Management

CERHs

Delegated water agencies or State authorities

State CBHs ANA

72 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Delegated water agencies

Collection

State authorities Notes: State Water Resources Council, Conselho Estadual de Recursos Hidricos – CERHs; National Water Resources Council, Conselho Nacional de Recursos Hidricos – CNRH; National Water Agency, Agência Nacional Águas – ANA; River Basin Committees, Comitê de Bacia Hidrográfica – CBHs.

OECD Studies on Water

Water Charges in Brazil THE WAYS FORWARD

THE WAYS FORWARD

www.oecd.org/env/watergovernanceprogramme.htm

Setting mechanisms and values

Water Charges in Brazil

OECD Studies on Water have been conducted for Brazil and Mexico, leading to concrete reform outcomes. For example, the 2017 study on Water Charges in Brazil: The Ways Forward fed the discussion within the technical chamber of the National Water Resources Council to improve Resolution No. 48/2005 establishing general criteria for water charges in Brazil. OECDBrazil capacity-building activities, building on the reviews conducted, will be carried out in 2019-21.

Interstate CBHs

OECD Studies on Water

Since 2012, the OECD Water Governance Programme has been supporting better water governance in LAC countries, including through the Water Governance in Cities report, which surveyed 48 cities, including 12 in the LAC region. The OECD has also carried out country-specific policy dialogue in Mexico, Brazil and Chile, and is preparing to do so for Argentina and Peru. In addition, Mexico, Chile, Brazil, Colombia and Peru are members of the OECD Water Governance Initiative, which is an international multi-stakeholder network of members from the public, private and non-for-profit sectors gathering regularly to share good practices in support of better governance in the water sector. As such, they are supporting the implementation of the OECD Principles on Water Governance and contributed to the development of the OECD Water Governance Indicator Framework.

The water charge implementation cycle – Brazil

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Modern economies and societies need effective regulations that enable growth, investment and innovation, and support the pursuit of social, economic and environmental objectives. The OECD is working with many countries in the Latin American and Caribbean region to evaluate the impact of current regulations, as well as prepare and implement simpler but more effective rules.

working with the OECD by having access to lessons learned and relevant practices from OECD member countries in better regulation. For example, through the Indicators on Regulatory Policy and Governance (iREG), countries in the region learn of the progress and challenges of OECD member countries in improving its regulations. The iREG indicators for Latin America extend this benchmarking to the LAC region.

The OECD has promoted dialogue on regulatory policy among public policy experts from the region through the LAC Network on Regulatory Improvement. In this way, the OECD regularly brings experts from member countries to Latin America to provide capacity building and engage in the exchange of practices. Latin American countries have benefited from

In addition, the OECD has collected the experience of member countries in enforcing regulations, and produced the OECD Regulatory Enforcement and Inspections Toolkit. The toolkit is serving as a guide to improve the systems of inspections in Mexico and Peru.

Stakeholder engagement in LAC in developing subordinate regulations iREG score

Methodology

Systematic adoption

Transparency

Oversight and quality control

4 3.5 3 2.5 2 1.5 1 0.5 0

PER

ECU

COL

CRI

CHL

BRA

MEX

LAC

OECD

Note: The figure displays the aggregate score of the composite indicator across four categories. The maximum score for each category is one, and the maximum aggregate score for the composite indicator is four. The more regulatory practices as advocated in the 2012 OECD Recommendation on Regulatory Policy and Governance a country has implemented, the higher its indicator score. Source: OECD Indicators of Regulatory Policy and Governance (iREG) for Latin America 2016; OECD iREG 2015, www.oecd.org/gov/regulatory-policy/indicators-regulatory-policyand- governance.htm. STRENGTHENING GOVERNANCE AND INSTITUTIONS . 73

STRENGTHENING GOVERNANCE AND INSTITUTIONS

Ensuring regulatory efficiency


Ensuring regulatory efficiency

“The World Bank and the OECD have worked together for many years pursuing the common goals of contributing to better policies to reduce poverty, promote shared prosperity and improve the wellbeing of people around the world. Most recently, our partnership formed under the OECD Latin America and the Caribbean Regional Programme has allowed both institutions to join forces in supporting reforms to adopt good international standards. We are also sharing global knowledge by co-organising events on topics of key relevance to the Latin American and Caribbean region, such as productivity, social protection and integrity. Going forward, through this collaboration, we hope to continue promoting best practices and standards in the region. We also hope to bring the relevant experiences of Latin American and Caribbean countries to the OECD context.”

Many impact examples of this work exist: l Helping

local and regional governments in Mexico to simplify and improve formalities that have a high impact on business activity, such as business license and construction permits;

l Promoting

the adoption of tools in Argentina, Chile Costa Rica and Peru to ensure that regulations tackle real problems that affect society, such as environmental and consumer protection, without imposing unnecessary burdens to businesses;

l Helping

economic regulators in Mexico and Peru to improve their performance by, for instance, proposing strategies to be more accountable and transparent.

Going forward, LAC countries have ample opportunities to strengthen the institutional landscape in support of better regulation. For instance, with the exception of Mexico, the use of regulatory impact assessment (RIA) – a tool for assessing draft regulations to ensure that they will generate more benefits than costs to society – is still intermittent. This is to a large extent due to the lack of institutions properly charged to oversee its implementation. TOOLS AND PRACTICES FOR REGULATORY IMPROVEMENT

Argentina has embarked in a series of regulatory reforms to improve the quality of its regulatory framework. High-quality regulations can protect consumers and the environment without becoming burdensome for citizens and businesses. The OECD Review of Regulatory Policy in Argentina provides information on the policies, institutions, and tools employed by the Argentinian government to design, implement and enforce high-quality regulations. These include administrative simplification policies, ex ante and ex post evaluation of regulations, stakeholder engagement practices, and multi-level regulatory governance arrangements. The review offers policy recommendations based on best international practices to strengthen the government’s capacity to manage regulatory policy.

OECD Reviews of Regulatory Reform

OECD Reviews of Regulatory Reform

Regulatory Policy in Argentina www.oecd.org/regreform/regulatory-policy www.oecd.org/gov/regulatory-policy/regulatory-policy-in-latinamerica-and-the-caribbean.htm

Axel van Trotsenburg, World Bank Vice President for LAC

OECD Reviews of Regulatory Reform

Regulatory Policy in Argentina TOOLS AND PRACTICES FOR REGULATORY IMPROVEMENT

Regulatory Policy in Argentina

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-55387-3

74 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

9HSTCQE*ffdihd+

TOOLS AND PRACTICES FOR REGULATORY IMPROVEMENT

Consult this publication on line at https://doi.org/10.1787/d835e540-en.

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Effective corporate governance policies seek to ensure that corporations contribute to economic development and social progress, thus leading to inclusive growth and the reduction of inequality. In the context of limited public resources, proper governance of state-owned enterprises (SOEs) is a fundamental priority to ensure value for money for citizens’ contributions. Since 2000, the OECD has promoted the implementation of the G20/OECD Principles of Corporate Governance and other corporate governance best practices through the Latin American Corporate Governance Roundtable, the Latin American Network on Corporate Governance of State-Owned Enterprises (SOEs) and related networks. All Latin American countries with active capital markets have implemented corporate governance reforms and established corporate governance codes that take into account the G20/OECD Principles. The Roundtable has established several task forces, which have issued recommendations and progress reports, including the Issues Note on Equity Market Development in Latin America.

“The OECD Latin America and the Caribbean Regional Programme represents a valuable tool for building a long-term vision of the region’s development, through a joint effort between governments, international organisations and other actors, aimed at promoting a reform agenda that will allow for the strengthening of productivity, competitiveness and the equality of opportunities in our countries.” Dr Luis Carranza, President of the Development Bank of Latin America

www.oecd.org/daf/ca/corporategovernanceinlatinamerica.htm

The June 2019 meeting of the Latin American Network on Corporate Governance of SOEs in Lima, Peru focused on the OECD’s new Guidelines on Anti-Corruption and Integrity in SOEs (the ACI Guidelines) and the initiatives being undertaken in Latin American countries to support their implementation, as well as the OECD Guidelines on Corporate Governance of StateOwned Enterprises. The discussions involved approximately 200 participants from 11 countries and 79 represented institutions, as well as a live web-cast of the meeting that reached a regional and global audience of more than 2000 people. Going forward, the OECD will work in partnership with CAF – Development Bank of Latin America – to support implementation of the ACI Guidelines in the region. L Roberto Salas Rey, Executive Director of Fonafe, Peru, opening the 2019 Meeting of the Latin American Network on Corporate Governance of SOEs in Lima, Peru. STRENGTHENING GOVERNANCE AND INSTITUTIONS . 75

STRENGTHENING GOVERNANCE AND INSTITUTIONS

Raising the bar on corporate governance of private and state-owned enterprises


ENVIRONMENT AND SUSTAINABILITY 

76 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


Green growth is about fostering economic development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Investing in green growth is a good opportunity for Latin America and the Caribbean as it seeks to foster alternative, internal sources of growth that can lead to the creation of new jobs and investment opportunities while securing a sustainable future. Colombia, Costa Rica and Peru have joined Chile and Mexico and other OECD members in adhering to the OECD Green Growth Declaration, which encourages domestic policy reforms that promote environmentally and socially sustainable economic growth. In support of the OECD’s Green Growth Strategy, co-operation between the OECD and other international and regional organisations has led to the inclusion of many LAC countries in the OECD’s Green Growth Indicator database. Furthermore, several LAC countries, including Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Paraguay and Peru, have adapted the OECD green growth indicators to their national contexts. Bolivia, Brazil, Chile, Colombia, Mexico and Peru also take an active part in the OECD Policy Dialogue on Natural Resourcebased Development, an intergovernmental platform for peer learning and knowledge sharing between OECD and non-OECD producing countries as well as extractive industries, civil society organisations, and think tanks. Going forward, the OECD will continue to develop its Green Growth Indicators and mainstream green growth principles into its regular Economic Surveys, Environmental Performance Reviews, Innovation Reviews and Territorial Reviews. As the OECD co-operates more closely with LAC countries and expands their participation in these peer-review assessments, LAC countries will continue to learn from the challenges and policy solutions implemented in OECD and other partner countries

to promote green growth. The OECD Green Growth and Sustainable Development Forum 2019 will focus on greening heavy and extractive industries. This will be relevant to LAC countries with important steel, cement, chemicals, oil, gas, and mining sectors. “Today Latin America and the Caribbean is a region in transition to development that is fully committed to the Agenda 2030 for Sustainable Development and its 17 Sustainable Development Goals (SDGs). It is a region that faces new and old challenges in the four dimensions of development: economic and productive; social; environmental and institutional. ECLAC has pointed out that low productivity, low technological intensity and lack of sophistication and diversification of production, as well as high levels of informality and structural heterogeneity, are the weaknesses of Latin American and Caribbean countries. These challenges have undermined the region’s participation in global value chains, limiting inclusive economic growth and generating a vicious cycle of low productivity and low technological dynamism. The current economic and social context and the leading role of the technological revolution add additional challenges to advancing an inclusive productivity agenda of more and better productive and technological policies that allow a real appropriation of emerging technologies. There is a need for more efficient and effective cooperation that comprehensively encompasses all dimensions of development, considers all levels (regional, national, sub-national, local) and involves all actors in the economic and social system (public, private, civil society, academia and NGOs).” Alicia Bárcena, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC)

www.oecd.org/greengrowth www.oecd.org/dev/natural-resources.htm ENVIRONMENT AND SUSTAINABILITY . 77

ENVIRONMENT AND SUSTAINABILITY

Promoting green growth


Combating climate change, and moving towards a cleaner and healthier environment Latin American and Caribbean governments have committed to cut their emissions and improve their climate resilience. However, the associated costs of doing so are estimated at USD 80 billion per year over the next decade, roughly three times what these countries currently spend on climaterelated activities. For the OECD, focusing on Latin America and the Caribbean is particularly pertinent given the great wealth of biodiversity in the region and the growing pressures on its conservation and sustainable use. The OECD is supporting the region in the development of effective policies, institutions and instruments for green finance and investment, with a focus on energy and infrastructure. The OECD actively supports international climate change discussions in the context of the Conferences of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). The OECD and the International Energy Agency (IEA)

78 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

jointly host the Climate Change Expert Group (CCXG) of the UNFCCC, which holds two Global Forums per year that bring together negotiators and practitioners from a wide range of governments, as well as experts from research organisations, the private sector, civil society, and other relevant institutions, including from many Latin American countries. During 2019, CCXG partnered with LAC in various ways, including partnering with the Latin American Energy Organization (OLADE) on a session on opportunities in the electricity sector; co-hosting a session at the pre-COP meeting in Costa Rica on long-term low emissions development strategies; and attending COP25 in Chile. Environmental Performance Reviews (EPRs) seek to improve the environmental performance of OECD member and partner countries by assessing their progress against national policy objectives and international commitments, and providing targeted policy recommendations. The OECD has reviewed


The benefits of the ocean economy across all three dimensions of sustainability – people, planet, prosperity – are significant. As part of the Sustainable Oceans for All: Harnessing the Potential of the Sustainable Ocean Economy for Developing Countries project, the OECD is conducting country diagnostics on two small island developing states in the LAC region, Grenada and Antigua and Barbuda. The country diagnostics have three aims: to assess i) the contribution of ocean-related economic sectors to the country and potential for growth to 2030, ii) the policy

frameworks and domestic financing to ensure environmental sustainability, and iii) the role of development partners and the international community in supporting the ocean economy. The diagnostics and a full project report will be presented at the UN Ocean Conference in June 2020. The clean energy transition offers significant potential to achieve both climate and development goals. In 2019, the OECD launched the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) programme. CEFIM is currently undertaking a Clean Energy Finance and Investment Review of Colombia, which will support Colombia – including through technical assistance - in strengthening its policy framework to facilitate and scale up finance and investment in renewable electricity and energy efficiency. The OECD has also joined forces with UN Environment and the World Bank under the Financing Climate Futures: Rethinking Infrastructure Initiative. Recent work shares insights on the potential of National Development Banks (NDBs) in shaping a climate-safe future, drawing specific attention to the Brazilian Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and its role in scaling up climate-compatible infrastructure in Brazil. A follow-up study is ongoing that will feed into and add value to the OECD Blended Finance Principles, which are a policy tool for all providers of development finance – such as donor governments, development co-operation agencies, and philanthropies – to help bridge the investment gap for the Sustainable Development Goals (SDGs). The OECD Roundtable on Financing Water is a global publicprivate platform established by the OECD, the World Water Council and the Netherlands. It draws upon political leadership and technical expertise, with the ambition of facilitating increased financing of investments that contribute to water security and sustainable growth. The Roundtable’s 2019 meeting had a special focus on the Americas – the meeting was hosted ENVIRONMENT AND SUSTAINABILITY . 79

ENVIRONMENT AND SUSTAINABILITY

Brazil, Chile, Colombia, Mexico and Peru during 2013-17. Key findings on biodiversity and ecosystem services from these reviews were recently synthesised in the publication Biodiversity Conservation and Sustainable Use in Latin America. The report aims to provide a sense of the common challenges facing these Latin American countries, the strategies being used to tackle them, the gaps that remain, and how these can be addressed.


Combating climate change, and moving towards a cleaner and healthier environment

by the IDB in Washington, D.C. and co-convened by the US government. Discussions focused on financing water-related expenditures in the LAC region and paved the way for further analytical and policy work in the coming years. The OECD Database on Policy Instruments for the Environment (PINE) gathers detailed information on policy instruments relevant for environmental and natural resource management, and includes information for the majority of LAC countries. Country contributions to this database are also relevant to monitoring progress towards Aichi Biodiversity Target 3 on incentives under the Convention on Biological Diversity.

www.oecd.org/environment/cc www.oecd.org/environment/cc/ccxg.htm www.oecd.org/innovation/inno/ocean-economy/ www.oecd.org/environment/indicators-modelling-outlooks/ policy-instrument-database/

In this context, from the perspective of international co-operation, our mission will be to build up a new type of co-operation based on innovation, investment, technical exchange and dialogue. We count on the OECD as a pivotal partner to help us to drive our aspirations forward.”

Financing Climate Futures RETHINKING INFRASTRUCTURE Infrastructure worldwide has suffered from chronic under-investment for decades and currently makes up more than 60% of greenhouse gas emissions. A deep transformation of existing infrastructure systems is needed for both climate and development, one that includes systemic conceptual and behavioural changes in the ways in which we manage and govern our societies and economies. This report is a joint effort by the OECD, UN Environment and the World Bank Group, supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. It focuses on how governments can move beyond the current incremental approach to climate action and more effectively align financial flows with climate and development priorities. The report explores six key transformative areas that will be critical to align financial flows with low-emission and resilient societies (planning, innovation, public budgeting, financial systems, development finance, and cities) and looks at how rapid socio-economic and technological developments, such as digitalisation, can open new pathways to low-emission, resilient futures.

Financing Climate Futures RETHINKING INFRASTRUCTURE

OECD/The World Bank/UN Environment (2018), Financing Climate Futures: Rethinking Infrastructure, OECD Publishing, Paris, https://doi.org/10.1787/9789264308114-en.

Financing Climate Futures

diversity and ecosystem services from the Environmental Chile, Colombia, Mexico and Peru between 2013 and 2017. The on challenges facing these Latin American countries, the strategies main and how these can be addressed. Focusing on Latin America th of biodiversity in the region and the growing pressures on its

FCF Report cover [4].indd 1

OECD Environmental Performance Reviews

Biodiversity Conservation and Sustainable Use 9HSTCQE*daibah+ in Latin America ISBN: 9789264308107 97 2018 46 1 P

EVIDENCE FROM ENVIRONMENTAL PERFORMANCE REVIEWS 15/11/2018 21:47

Biodiversity Conservation and Sustainable Use in Latin America

org/10.1787/9789264309630-en.

which gathers all OECD books, periodicals and statistical databases. tion.

Jolita Butkevičiene, Director for Latin America and the Caribbean, DirectorateGeneral of International Co-operation and Development, European Commission

RETHINKING INFRASTRUCTURE

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

vation and Sustainable Use

ISBN 978-92-64-30960-9 97 2018 48 1 P

OECD Environmental Performance Reviews

Consult this publication online at https://doi.org/10.1787/9789264308114-en

mance Reviews

MENTAL PERFORMANCE REVIEWS

“For Europe, Latin America is a strategic partner. Its importance and the complexity of its reality cannot be described or limited by a single figure such as income per capita. Our partners in the region can offer innovative regional responses with global impact and have a crucial role in the achievement of the Agenda 2030. Whenever we speak about inclusion, sustainable development, urban agenda or gender equality, we are making direct reference to the Agenda 2030 as well as to our shared values and interests. In Latin America, we have the opportunity to bring multiple dimensions of co-operation together. Europe and Latin America and the Caribbean have the opportunity to build true multidimensional and ambitious partnerships, which will be relevant not only in the region, but globally. These partnerships will influence and guide the most important international agendas: from trade to climate change, from sustainable development to digital transformation.

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80 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


The chemicals industry is one of the world’s largest industrial sectors. As many of the same chemicals are produced in more than one country or traded across countries, the OECD supports its Members and non-members, including Latin American and Caribbean countries, to avoid duplicated testing and share the burden of chemical assessments through the internationally accepted OECD guidelines.

The OECD encourages increased co-operation with LAC countries on chemical and biological safety, including adherence to instruments like MAD and participation in activities related to pesticides, PRTRs and genetically modified organisms.

http://www.oecd.org/chemicalsafety/ www.oecd.org/env/prtr www.oecd.org/env/ehs/pesticides-biocides

In addition to OECD Members Chile and Mexico, Argentina and Brazil are adherents to the OECD programme of Mutual Acceptance of Data (MAD) in the Assessment of Chemicals. The OECD’s MAD programme is a multilateral agreement that allows the results of non-clinical safety tests on chemicals and chemical products – such as industrial chemicals and pesticides – to be shared across adhering countries. Under MAD, testing must be carried out according to the OECD Test Guidelines and OECD Principles of Good Laboratory Practice. Adherence to MAD saves governments and chemical producers in participating countries EUR 150 million annually. Brazil, Chile and Mexico take part in the OECD Pesticides Programme as well as in OECD work related to genetically modified crops, where Colombia and Costa Rica have also shown interest. Brazil and Argentina, as the second and third largest global producers of genetically modified crops in 2015, have also long participated in the OECD’s activities related to environmental biosafety and the safety of novel foods and feeds. This engagement with the OECD helps participating governments in the LAC region to assess and reduce health and environment-related risks. Several Latin American countries have participated in the OECD Working Group on pollutant release and transfer register (PRTR) to exchange information and experience on implementing a PRTR, which is a publicly accessible database of pollutants releases to the environment. This facilitates the development and implementation of harmonised PRTRs. ENVIRONMENT AND SUSTAINABILITY . 81

ENVIRONMENT AND SUSTAINABILITY

Strengthening chemical and biological safety


Ensuring reliable and clean energy

Promoting the production of renewable and clean sources of energy is a priority for many national, regional, and local governments. Using clean energy and participating in the green economy is also a way to guarantee energy security in a carbon-constrained economy and can help countries develop a competitive advantage in this growing economic sector.

effective energy efficiency policies across sectors, adapting their planning and operational processes for growing shares of variable renewables, and helping governments harness the opportunities of innovation and digitalisation for their energy transitions. The IEA is also helping governments in ensuring reliable energy beyond oil, focusing on power system modernisation and the prospects for natural gas storage.

The International Energy Agency (IEA) fosters bilateral and regional collaboration on a variety of clean and reliable energy topics through continuous technical dialogue, exchange of international best practices and high-level political engagement.

The IEA’s presence in the LAC region is growing, helping it to provide inputs for evidence-based policy making in the energy sector to promote sustainability, energy security and international engagement. Many Latin American countries are on track for a significant increase in the use of variable renewable energy, leading to new challenges for power systems infrastructure and operation. At the same time, energy efficiency potentials continue to remain largely untapped. IEA co-operation helps countries improve their data collection and analysis,

Under its Clean Energy Transitions Programme, the IEA is helping the region enhance its energy statistics to IEA member country standards, supporting the design and implementation of energy market reforms, promoting

Variable renewables as a share of total electricity generation Uruguay Costa Rica

2017

Chile

2022

Mexico OECD average (2022) 16.4%

Brazil Argentina Colombia 0%

5%

10%

15%

20%

25%

VRE Share (%) Source: IEA Renewables 2018 (https://www.iea.org/renewables2018/) 82 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

30%

35%

40%


ENVIRONMENT AND SUSTAINABILITY

identify challenges and develop solutions. At the same time, the region contains several hotspots for clean energy technology deployment, so that IEA co-operation helps monitoring avantgarde market areas and capturing the latest experience with new policy solutions for possible adaptation elsewhere. In addition to its growing bilateral engagement with the largest economies in the region, IEA is working with key regional partners, including the Latin American Energy Organisation OLADE, and UN ECLAC, to further improve energy related data collection, identify and use energy efficiency potentials and work towards the reliable deployment of variable renewables. In keeping with IEA’s all-fuels, all-technologies approach, a key focus of broadened and deepened best practice exchange will be market designs, for both gas and power markets, in support of sustainable energy transitions.

www.iea.org/cetp/

ENERGY POLICIES BEYOND IEA COUNTRIES

Chile 2018

Secure Sustainable Together

Towards a competitive  natural gas market in  Brazil   A review of the opening of the natural  gas transmission system in Brazil 

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The views expressed in this paper do not necessarily reflect the views or policy of the International Energy Agency (IEA) Secretariat or of its individual member countries. The paper does not constitute advice on any specific issue or situation. The IEA makes no representation or warranty, express or implied, in respect of the paper’s content (including its completeness or accuracy) and shall not be responsible for any use of, or reliance on, the paper. Comments are welcome, directed to mariano.berkenwald@iea.org.

ENVIRONMENT AND SUSTAINABILITY . 83


Annexes PARTNERSHIPS IN OECD BODIES1,2 OECD-LAC co-operation has led to a stronger participation of countries from the LAC region as Partners in OECD bodies. Associates (in some bodies referred to as member of the body) participate in OECD Bodies, projects or the development or revision of OECD legal instruments, for an open ended period, on near-equal footing with OECD Members. Participants participate in OECD Bodies for an open-ended period, except in discussions marked as confidential. LATIN AMERICA

CARIBBEAN

P

P

P

Committee on Consumer Policy and all subsidiary bodies Working Party on Consumer Product Safety Corporate Governance Committee

TTO

P

LCA

P

VCT

P

JAM

A

KNA

P

GRD

A

DOM

A

BRB

A

DMA

A

ATG

A

Competition Committee and all subsidiary bodies

BHS

Working Group on Bribery in International Business Transactions

PER

P

PRY

P

PAN

P

NIC

P

Joint Working Party on Agriculture and Trade

SLV

Working Group on Commodity Markets

URY

HND

GTM

P

CRI

P

ECU

Working Party on Agricultural Policies and Markets

COL

P

BOL

P

BRA

ARG

Committee for Agriculture

BLZ

OECD BODIES AND ACTIVITIES

P

P P

Working Party on State Ownership and Privatisation Practices

P P

Governing Board of the Development Centre

M

M

M

M

Programme for International Student Assessment (PISA) Governing Board

P

A

A

A

Governing Board of the Programme for the Teaching and Learning Internationl Survey (TALIS)

P

P

Group of National Experts on Vocational Education and Training

P

Environmental Policy Committee and all subsidiary bodies

P

Joint Meeting of the Chemicals Committee and the Working Party on Chemicals, Pesticides and Biotechnology

M

M

M

M P

M

M

M

M

P

P

P

P

1. For further information on Partners’ rights and obligations, see the Revised Resolution of the Council on Partnerships in OECD Bodies [C(2012)100/REV1/FINAL]. 2. Countries are identified in the table via their ISO 3166 Alpha-3 country code. For a full explanatory list of these abbreviations, see https://www.iso.org/obp/ui/#search.

84 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

P


ANNEXES

LATIN AMERICA

M

M

M

M

TTO

P

P

M

M

M

P

P

P

A

P

P

Investment Committee meeting in enlarged session for work related to the Declaration on International Investment and Multinational Enterprises and related Instruments

A

A

A

P

P

Public Governance Committee

M

M

M

A

P

Regulatory Policy Committee

P

Regional Development Policy Committee

P P

P

P

Committee on Industry, Innovation and Entrepreneurship (CIIE)

P P

Committee on Statistics and Statistical Policy

P P

Joint Working Party on Trade and the Environment Steel Committee

M

LCA

P

Investment Committee

Trade Committee

M

P

P

Working Party on Private Pensions

Committee for Scientific and Technological Policy (CSTP)

M

VCT

M

JAM

M

KNA

M

GRD

M

DOM

M

BRB

P

M

DMA

P

Committee on Digital Economy Policy

M

ATG

Fisheries Committee

M

BHS

M

PER

A

Global Forum on Transparency and Exchange of Information for Tax Purposes

URY

Committee on Fiscal Affairs

PRY

A

PAN

Working Party on the Harmonisation of Regulatory Oversight in Biotechnology

NIC

A

HND

A

SLV

Working Group of National Co-ordinators of the Test Guideline Programme

GTM

A

CRI

A

ECU

Working Group on Good Laboratory Practice

COL

A

BOL

A

BRA

ARG

Joint Meeting of the Chemicals Committee and the Working Party on Chemicals, Pesticides and Biotechnology (MAD related issues only)

BLZ

OECD BODIES AND ACTIVITIES

CARIBBEAN

P

P P

P

P

P

A

Note: A refers to Associate, P refers to Participant and M refers to Member.

ANNEXES . 85


Annexes

ADHERENCE TO OECD LEGAL INSTRUMENTS OECD co-operation with Latin America and the Caribbean has led to stronger adherence to OECD legal instruments by non-Members from the region. A full listing of adherence to OECD legal instruments, per country or per instrument, is available at https://legalinstruments.oecd.org/en/.

300 New adherences (# per year)

250

200

150

100

50

0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Note: This figure shows the number of new adherences by LAC partner (aka non-OECD member) countries per year, between the period 2000-2019, as well as their accumulation over this period. It does not consider adherences by LAC partner countries prior to 2000.

86 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN


ANNEXES

Annexes

LAC COUNTRY PARTICIPATION IN OECD LAC NETWORKS3 Regional Expert Network on Metrics for Policies for Well-being and Sustainable Development in LAC – Argentina, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Peru and Uruguay. LAC Law Enforcement Network (LAC-LEN) – Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, Uruguay. OECD–IDB Latin American and Caribbean Competition Forum (LACCF) – Argentina, Barbados, Brazil, Bolivia, Colombia, Costa Rica, Chile, Dominican Republic, El Salvador, Ecuador, Guatemala, Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay, Bolivarian Republic of Venezuela (Venezuela). LAC Corporate Governance Networks (Roundtable and/or Network on Corporate Governance of State-Owned Enterprises – Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Nicaragua, Panama, Paraguay, Peru, Trinidad and Tobago. LAC Fiscal Initiative – Antigua & Barbuda, Argentina, Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela. LAC Network on Regulatory Improvement – Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Mexico, Panama, Paraguay, Peru. LAC Health Systems Network – Argentina, Bahamas, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Jamaica, Mexico, Panama, Paraguay, Peru, Uruguay. LAC Investment Network – Argentina, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay. LAC Network on Open and Innovative Government – Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Panama, Paraguay, Peru, Uruguay. LAC Senior Budget Officials Network (LAC SBO) – Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Paraguay, Peru, Uruguay. OECD-IDB LAC Public Integrity Network – Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru, Uruguay. LAC Regional Network of the OECD International Network on Financial Education – Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, Honduras, Mexico, Paraguay, Peru.

NOTES & SOURCES 1. On 25 May 2018, the OECD Council invited Colombia to become a member. The date of membership will be the date of the deposit of Colombia’s instrument of accession to the OECD Convention. 2. http://data.worldbank.org/region/latin-america-and-caribbean 3. Ibid. 4. http://data.worldbank.org/data-catalog/GDP-ranking-table 5. OECD/CAF/ECLAC (2019), Latin American Economic Outlook 2019 : Development in Transition; Economic Commission for Latin America and the Caribbean (ECLAC), Social Panorama of Latin America, 2018 (LC/PUB.2019/3-P), Santiago, 2019; OECD (2016) Boosting Productivity and Inclusive Growth in Latin America. 6. According to the World Bank methodology: https://datahelpdesk.worldbank. org/knowledgebase/articles/906519-world-bank-country-and-lending-groups 7. See WITS database, “Latin America & Caribbean Exports of goods and services, in % of GDP” (https://wits.worldbank.org/CountryProfile/en/LCN) and https:// www.cepal.org/en/pressreleases/foreign-direct-investment-latin-america-andcaribbean-falls-third-straight-year-2017. 8. ECLAC, International Trade Outlook for Latin America and the Caribbean, 2018 (LC/PUB.2018/20-P), Santiago, 2018. 9. Ibid. 10. http://latintrade.com/latin-america-growing-strategic-importance/ 11. Public social expenditure refers to benefits with a social purpose including the following policy areas: old age, surv ivors, incapacity-related benefits, health, family, active labour market programmes, unemployment, housing and other social policy areas. This does not include education related expenditure. Estimates for 2018. Data for Chile are not comparable overtime due to a break in series in 2005. Data on the right panel are not fully comparable since they refer only to central govt spending on social protection and health as in the classification of the functions of government.

3. Denotes the LAC countries that participated in at least one Network meeting during 2016-18. Generally, all countries in the LAC region are invited to participate in these Networks, and more information can be found at http://www.oecd.org/latin-america/regionalprogramme/.

ANNEXES . 87


Annexes

DIALOGUE AND DATA The OECD reaches out to stakeholders in the business and labour community and garners diverse perspectives in its policy dialogue through the Business and Industry Advisory Committee to the OECD and the Trade Union Advisory Committee to the OECD, as well as fostering increased participation of elected officials through the OECD Global Parliamentary Network. The Trade Union Advisory Committee to the OECD (TUAC) works closely with the International Trade Union Confederation (ITUC) and the Trade Union Confederation of the Americas to ensure that the voice of workers in non-OECD Members is heard. TUAC chapters from the LAC region include the Confederation of Mexican Workers (CTM) and the Federation of Trade Unions in Goods and Services (Mexico). The Central Única dos Trabalhadores (Brazil) is an associate member of the TUAC. These organisations contribute to the work undertaken by TUAC to prepare the positions taken in the G20, the IFIs and other forums. TUAC also closely works with the Chilean Trade Union Confederation (CUT) and Colombian trade union centres.

out public affairs and communication activities with the Spanish-speaking community. In addition to this, a new dedicated website (www.oecd.org/latinamerica) has been created to provide regular updates on OECD-LAC activities in both English and Spanish. www.oecd.org/latin-america www.oecd.org/centrodemexico DISCLAIMERS This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

Business at OECD (BIAC) has several member and observer associations from the LAC region, including the Employers Confederation of the Mexican Republic (COPARMEX), the Confederation for Production and Commerce of Chile (CPC), the Union Industrial Argentina (UIA), the National Confederation of Industry of Brazil (CNI), the National Business Association of Colombia (ANDI) and the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP). Through their involvement, the LAC business community is able to contribute its views and expertise to Business at OECD (BIAC) and OECD policy discussions across a broad range of issues. In addition, parliamentarians from the region are becoming increasingly involved in the OECD Global Parliamentary Network, which aims at facilitating dialogue amongst parliamentarians on the enacting and implementation of reforms. Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador Mexico and Peru have all taken part in meetings of the Network. The OECD Emerging Markets Network (EmNet) is a business-oriented platform for dialogue and analysis of economic trends, business strategies, and policy challenges. With participation from OECD experts, private-sector executives and policy makers from emerging economies, EmNet provides networking and collaboration opportunities across these sectors. Each year, EmNet holds a meeting with a focus on the LAC region, exploring and debating how companies and policy makers can best adapt their strategies to emerging market issues. Finally, the dissemination of OECD publications and policy outreach activities are enhanced through the OECD Mexico Centre for Latin America, which carries 88 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

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The Active with Latin America and the Caribbean brochure provides a full picture of how the OECD works with the region to support structural...

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The Active with Latin America and the Caribbean brochure provides a full picture of how the OECD works with the region to support structural...

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