Active with LAC 2022 by OECD

ACTIVE WITH

LATIN AMERICA AND THE CARIBBEAN

SUPPORTING THE STRUCTURAL REFORM AGENDA IN LATIN AMERICA AND THE CARIBBEAN Latin America and the Caribbean (LAC) was one of the world’s regions hardest hit by the COVID-19 crisis, with unprecedented health, economic, social and political ramifications. While the region is home to 8% of the world’s population, it reported about 30% of global deaths. Moreover, an estimated 26 million jobs were lost as a result of the pandemic, lowering its GDP to 2009 levels. Prior to the pandemic, LAC was already facing severe difficulties due to its fragile health infrastructure and social protection systems, tight fiscal space, commodity-centred exports, low citizen trust and gaping inequalities, notably due to the prevalence of the informal economy. The recovery from the crisis therefore offers a unique opportunity to create stronger, more inclusive and greener economies, foster innovation through skills and quality education, bridge digital divides and gender gaps, and rebuild trust and strengthen democracy with responsive, open governments. The OECD just commemorated its 60th anniversary, reaffirming our members’ commitment to shared values such as the preservation of individual liberty, democracy, the rule of law, the defence of human rights, open and transparent market economies and the protection of our planet. Latin America and the Caribbean is a region that widely shares these values and strives for better policies. This has been the basis of our fruitful co-operation for over more than two decades, and will continue to pave the way for long-term prosperity and well-being for all citizens. Since 2016, the LAC Regional Programme (LACRP) has been instrumental in disseminating OECD standards and best practices, notably through peer learning and strengthened regional co-operation. The LACRP has proven to be an effective platform for high-level, whole-of-government policy dialogue to advance reforms in three key priority areas for the region: increasing Productivity, enhancing Social Inclusion, and strengthening Institutions and Governance. As the Green and Blue agenda is becoming a pressing issue, the Programme has now adopted a fourth priority on Environmental Sustainability. This COVID-19 crisis is a wake-up call for governments, the private sector, civil society, and international development partners to come together and take concerted actions to advance on consistent, long-term, and sustainable strategies that are at the forefront of national and regional transformative agendas. The OECD stands ready to support Latin America and the Caribbean and partner with all stakeholders to promote and implement a sustainable economic recovery, and contribute to the region’s advancement towards the 2030 Agenda for Sustainable Development. MATHIAS CORMANN, OECD Secretary-General

CONTENTS

Contents

THE OECD AND LATIN AMERICA AND THE CARIBBEAN Snapshot: The LAC region within the global economy COVID-19 in Latin America and the Caribbean Supporting the region’s reform agenda Latin American Economic Outlook (LEO) Working hand in hand with regional partners Identifying policy drivers for sustainable and inclusive economic growth and improved policies for well-being Promoting development co-operation and the 2030 agenda

2 4 6 8 18 20

INCREASING PRODUCTIVITY Boosting productivity, including through increased connectivity Fostering Innovation Increasing the quality, relevance and coverage of education and skills training Improving financial literacy Fostering sound competition Enhancing the investment environment and responsible business conduct Promoting trade and integration in global value chains Supporting, SME development and entrepreneurship Revitalising tourism Boosting agricultural productivity and ensuring food security

ENHANCING SOCIAL INCLUSION Creating more and better-quality jobs Tackling inequality and informality in the times of COVID-19 Tackling gender inequality Better understanding and harnessing migration flows Improving healthcare quality and coverage

42 43

22 24

27 28 30 33 34 35 37 38 39 40

STRENGTHENING GOVERNANCE AND INSTITUTIONS Improving public governance Promoting inclusive regional and urban development Improving revenue collection and fiscal management Enhancing tax transparency and compliance Efficient public procurement and budgeting Enhancing integrity and combatting corruption Fostering open government Ensuring regulatory efficiency Raising the bar on corporate governance of private and state-owned enterprises

54 55 57 59 61 62 64 65 66

ENVIRONMENT AND SUSTAINABILITY Promoting green growth Improving water governance Taking action on climate change and moving towards a cleaner and healthier environment Strengthening chemical and biological safety Ensuring reliable and clean energy

68 69 70

ANNEXES Partnerships in OECD Bodies LAC country participation in OECD LAC networks OECD networks with participation of LAC countries Stakeholder engagement Disclaimers

76 77 79 79 80 80

71 74 75

46 48 51 52

CONTENTS . 1

THE OECD AND LATIN AMERICA AND THE CARIBBEAN Today, Latin America and the Caribbean and the OECD are closer than ever. Six years after the creation of the OECD Latin America and the Caribbean Regional Programme (LACRP), much progress has been made to support the region advance its reform agenda along three key priorities: increasing Productivity, enhancing Social Inclusion, and strengthening Institutions and Governance. The proposal, championed by Costa Rica of adding a fourth priority on Environmental Sustainability for the 2022-2025 cycle has recently been welcomed and adopted by the LACRP Steering Group (see page 9). 2 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

“2020 and 2021 were exceptionally challenging years for the Latin American and Caribbean region due to the COVID-19 crisis, which exacerbated many of our structural challenges and exposed profound vulnerabilities. But, at the same time, the pandemic crisis brought Latin American and the Caribbean countries closer. Through regional integration, we are working together to manage the consequences of the crisis during the post-pandemic recovery, including the access to vaccines by all countries and building a common and more prosperous future for our region. In this context, international co-operation and solidarity had never been so important. Open and inclusive dialogue among nations is also crucial to this effort. Thus, the OECD Latin American and Caribbean Regional Programme provides us with an excellent opportunity to exchange experiences and best practices in key issues such as the reduction of inequalities, the strengthening of our institutions and governance, and increasing our productivity while protecting the environment and achieving a sustainable and inclusive recovery. As an OECD member, Mexico is convinced that the Organization can fully support these efforts and that the LACRP has a crucial role to play in that regard.” – Marcelo Ebrard Causaubon, Minister of Foreign Affairs of Mexico

“The OECD has been attentive to developments in the world economy and keen to respond to the challenges, analysing and proposing public policies for a better world. We consider the OECD instruments, policies and guidelines are important references for the necessary and permanent update and improvement of the Brazilian legislation in various issues.” – Carlos Alberto França, 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 10.8 trillions in 20191 and a market of 652 million people2, Latin America and the Caribbean (LAC) is a region of growing importance to the world economy. Furthermore, many LAC and OECD countries share common values and interests, including competitive and inclusive market economies, open trade, human rights and democracy. This sets the basis for a mutually beneficial relationship that could contribute to address global challenges such as climate change, the end of poverty and international migration.

LAC region, as compared to top world economies (2020 GDP – trillions of US dollars)4

1. USA (20.94) 2. EU (15.19) 3. China (14.73) 4. Japan (5.06) 6. LAC (4.84) 6. India (2.63)

Diverse regional economies l

Variety of overlapping sub-regional trade 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) Three G20 countries: Argentina, Brazil and Mexico

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Vast natural resources LAC disposes of abundant natural resources3: l

20% of all oil resources

33% of global fresh water

40% of the world’s biodiversity

46% covered by forests

Substantial mineral stocks

A key issue is how to better share the benefits derived from natural resources.

1. The World Bank, 2019; 2. ibid; 3. FAO, 2020

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

A growing, yet vulnerable, middle class l

Most LAC economies are classified as upper-middle-income economies, based on their GNI per capita rates. (The World Bank, 2020)

As a consequence of the COVID-19 pandemic, 22 million Latin Americans fell back into poverty. (ECLAC, 2021)

High rates of informality are a key feature of LAC labour markets: In the recovery of the pandemic (from mid-2020 to April 2021) 70% of the job opportunities generated were informal. (ILO, 2021)

Even if primary, secondary and tertiary education completion rates have all risen since 2002, the number of school dropout increased due to the pandemic. It is estimated that more than three million students may have left school in LAC. (ECLAC, 2021)

Need to diversify exports l

The main trading partners of Latin America in 2020 were: The United States, the European Union, China and the intra-region commerce. (IDB, 2021)

FDI inflows have fallen 45% due to the pandemic in LAC. (UNCTAD, 2021)

60% of the region’s exports are commodities, natural resource-based manufactures and low-technology manufactures. (OECD)

Only 14% of exports are high-technology manufactures (as of 2019), while 14 out of 33 LAC countries are commodities dependent. (UNCTAD, 2021)

THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 5

COVID-19 in Latin America and the Caribbean

When the COVID-19 pandemic hit LAC in early 2020, most governments quickly reacted to provide swift responses to control the outbreak and tackle its economic and social impacts. However, the LAC region struggled to contain the levels of contamination which was compounded by its weak healthcare infrastructure and informal economy. Countries came short in providing effective social protection and minimise school closures. The healthcare systems of most LAC countries have significantly lower capacity than the OECD average. They feature lower health expenditure, fewer hospital beds and health professionals per 1000 inhabitants, as well as weaker disease surveillance and Hospital beds per 1000 habitants 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 OECD School closures

tracking systems1. Thus, the pandemic forced many governments to improve their hospital infrastructures in order to assist the population, as their primary health care systems were not able to cope with the exceeding demand. On the economic front, the region was already in a weak situation when the pandemic hit – with even less fiscal space than in 2008 to mitigate the 7% recession2. Moreover, with nearly 60% of informal employment3 and only 45.5%4 of households with internet access, social distancing was in many cases impossible to follow5, as people had to work to live. The COVID-19 also strongly impacted Caribbean countries where tourism accounts for 26% of GDP.

Out-of-pocket health expenditures 40 35 30 25 20 15 10 5 0 OECD Effective online learning 60

OECD

LAC

Number of students per computer 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 OECD Share of internet users 100 80 60 40 20

OECD

LAC

Source: OECD (2021) Latin American Economic Outlook 2021 1. 2. 3. 4. 5.

OECD (2020). Hospital beds. OECD. (2020). COVID-19 in Latin America and the Caribbean: Regional socio-economic implications and policy priorities. OECD. (2020). COVID-19 in Latin America and the Caribbean: Regional socio-economic implications and policy priorities. Wilson Centre. (2021). Latin America’s Digital Divide: Overcoming Persistent Gaps. OECD (2020), COVID 19 in Latin America and the Caribbean: Regional socio-economic implications and policy priorities

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LAC

OECD

LAC

and Uruguay have lost on average 14 weeks compared to 38 and 55 weeks, in Brazil and Panama, respectively. (Latin American Economic Outlook 2021)

Many schools in LAC were forced to close to contain the spread of the virus. Globally, schools were fully closed for 19 weeks, on average. In LAC, this figure rises to 26 weeks of full school closures, on average, making it the region with the highest average number of lost school days. Between March 2020 and March 2021, school closures in LAC was higher than 70% compared to the OECD (Figure 2.1). Across LAC countries, there is considerable variation in school weeks lost; for instance, Chile

The COVID-19 pandemic has exacerbated many long-standing challenges that LAC has been grappling with for long. For instance, widespread labour informality precludes many workers from social protection, while holding back productivity growth at the same time. Tackling these complex issues requires simultaneous action on many fronts, including tax policies, regulatory policies, labour market institutions, design of social protection systems, access to finance, education and training, enforcement action.

6. ILO. (2021). 26 million jobs lost in Latin America and the Caribbean during pandemic. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 7

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

The impact of the pandemic on the region’s social sphere is unprecedented. More than 26 million6 jobs lost, 4.7 million people moved from the middle class into poverty, both inequality and poverty indicators increased.

Supporting the region’s reform agenda

Established in 2016, the OECD Latin America and the Caribbean Regional Programme (LACRP) aims to support the region advance its reform agenda. The Programme’s co-chairmanship for 2019-2022 was assumed by Mexico, as OECD member country, and Brazil, as LAC partner country. The co-chairs preside over the Steering Group of the Programme, which provides strategic guidance. The Steering Group is composed of OECD members and the EU, 11 non-OECD LAC countries1 and nine international organisations2.

The OECD LAC Regional Programme’s priorities, Productivity, Social Inclusion, Governance and Environmental Sustainability broadly encompass the region’s inter-related challenges. In the current post-COVID context, they are more relevant than ever to build back better and promote a strong, inclusive, resilient and sustainable recovery. Productivity: The LAC region is characterised by a predominance of micro and small firms which have low productivity, are often disconnected from international markets and do not have the capacity to absorb shocks, like the one created by the pandemic.

1. C(2016)1/FINAL establishes that the LACRP Steering Group would be open to representatives LAC partner countries, preferably but not limited to those already members of the OECD Development Centre. Non-OECD LAC Members of the Development Centre are Argentina, Brazil, Dominican Republic, Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru and Uruguay. Honduras, not being member of DEV, requested through a letter and was accepted as member of the Steering Group. 2. ECLAC, World Bank, ILO, IADB, SEGIB, SELA, CAF, OAS, EU-LAC Foundation. Left to right: Mathias Cormann, Secretary-General of the OECD with Rodrigo Chaves Robles, President of Costa Rica, Paulo Guedes, Minister of Economy of Brazil and Martín Guzmán, Minister of Finance of Argentina.

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Governance: As elsewhere in the world, LAC democracies face significant challenges and threats. Special attention should be given to trust, the foundation upon which the legitimacy of public institutions is built. Environmental Sustainability: LAC is the region with the world’s greatest biodiversity and abundant natural resources. The COVID-19 pandemic has underscored the critical need to align environmental policy with the economic recovery in order to achieve the Sustainable Development Goals (SDGs).

“It appears to be a short time but, through its first six years, the LACRP has achieved several important milestones. Firstly, it has proved to be a key multilateral platform to enhance policy dialogue in the region and to strengthen international co-operation, particularly since COVID-19 hit harder the LAC region. Furthermore, in the course of the Programme’s six successful Ministerial Summits on Productivity, Social Inclusion, and Governance and its 13 Steering Committee meetings, OECD members and LAC countries have joined forces to find solutions to address global and regional challenges such as the pandemic, the increasing inequalities, the need of a new social contract, as well as the fight against corruption. Recently, we have agreed to address the environmental challenges in our work. Thus, moving forward, the Programme will remain a strategic ally of the region in building more inclusive, stronger, resilient and greener societies.” Sybel Galván Gómez, Ambassador of Mexico to the OECD

“Co-Chairing the OECD Latin America and the Caribbean Regional Programme, together with my Mexican counterpart, during the last two and a half years has been an enriching experience that has benefitted from the very clear interest of countries in the region to cooperate with the OECD.” Carlos Marcio Cozendey, Ambassador, Delegation of Brazil to International Economic Organisations based in Paris

THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 9

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

Social Inclusion: As one of the most unequal regions in the world, Latin America and the Caribbean has a vulnerable middle class and struggles with high rates of informality, with many left outside social protection safety nets during the pandemic.

Supporting the region’s reform agenda

The OECD has never been closer to Latin America and Caribbean. Chile, Colombia, Costa Rica and Mexico are OECD Members. In January 2022, the OECD Council decided to open accession discussions with Argentina, Brazil and Peru. The seven countries, together with the Dominican Republic, Ecuador, El Salvador, Guatemala, Panama, Paraguay and Uruguay are members of the OECD Development Centre. These countries, in addition to Honduras, OECD Members and partner International Organisations take part in the LACRP Steering Group. Latin America and the Caribbean’s presence at the OECD is very active. LAC members and partners have launched numerous projects and co-operation platforms in support of specific reforms on education, telecommunications, fiscal and budgetary policy to name a few. See dedicated webpages in https://www.oecd.org/latin-america/countries/

Brazil has been the most active Key Partner of the OECD, whose co-operation with the OECD dates back to the early 1990s. In May 2017, the country formalised its willingness to join the Organisation, and, since then, it has further intensified its co-operation with the OECD ensuring broad convergence with the Organisation’s standards and seeking to upgrade its Partnerships in OECD bodies. Brazil is also serving as a co-chair of the OECD LAC Regional Programme for 20192022, alongside Mexico in its capacity as an OECD member. 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.

OECD Secretary-General Mathias Cormann welcomes at the OECD Headquarters Iván Duque, President of Colombia. 10 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Assistance in Tax Matters. A number of Legislative Decrees were also adopted in areas such as integrity, anti-corruption, water, solid waste management, transfer pricing, BEPS and tax evasion. Peru is also the host of the OECD-LAC Competition Centre. .

“The LACRP offers a valuable and collaborative space to align agendas and public policy priorities within the region, particularly considering these difficult times. The three pillars of the Programme: productivity, social inclusion and governance, are essential to generate political will from many actors and strengthen multi-stakeholder collaboration in the region. We hope that with Costa Rica’s proposal to establish a new pillar on environment and sustainability, the scope of the Programme will reinforce and be instrumental in intensifying the OECD’s cooperation with our region in a dynamic and decisive manner.”

“Combatting tax evasion that is done using tax havens to hide escaped funds is an act of justice with the vast majority that fulfills its responsibility. OECD support to identify those who have acted in this way will be essential to be effective in this endeavor.”

Rodrigo Chaves Robles, President of Costa Rica

“Democracy is at risk and the only way to deal with this challenge is working together, with a clear focus and the commitment to improve national and multilateral efficiency and transparency. Yet this discussion needs to include vision from other regions in the world which are so important because the natural resources, human capabilities to create innovation and wealth, that’s the case of the Indo-Pacific and Latin America regions. We need a transatlantic discussion that put together all the countries that share values: democracy, rule of law, human rights, integrity, and the commitment with the private sector as source of jobs.”

Martín Guzmán, Minister of Finance of Argentina

“The COVID-19 pandemic has had an enormous impact on our countries. The challenges it has ushered in have surpassed the response capacity of our health, welfare and education systems, and it has also undermined our digital, productive and economic structures. Nevertheless, these challenges represent an opportunity to strengthen international co-operation at the multilateral level to overcome this multidimensional crisis. Peru is committed to completing its accession process into the OECD to continue its path towards stronger, resilient, equitable and sustainable growth. In close coordination with the OECD, Peru aims at implementing reforms and design governance instruments that strengthen and improve public services that benefit and increase wellfare for our people.” César Landa Arroya, Minister of Foreign Affairs of Peru

Marta Ramírez, Vice-President of Colombia

THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 11

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

Peru has a solid relationship with the OECD that was boosted thanks to the successful implementation of Peru-OECD Country Programme which was instrumental to the enactment of legislation that allowed Peru to accede to the Anti-Bribery Convention and Convention on Mutual Administrative

Supporting the region’s reform agenda

A Ministerial Summit is held every year in the LAC region addressing each of the thematic priorities on a rolling basis, creating a multi-year platform with tracks for each of the priorities. So far, the LACRP has held six Ministerial Summits. On 28 May 2021, the OECD LAC Regional Programme celebrated its 5th Anniversary during a special high-level event. It included the participation of the former OECD Secretary-General Angel Gurría, the Presidents of Costa Rica and Honduras, the VicePresident of El Salvador, nine Ministers from OECD and LAC countries, the High-Representative and Vice-President of the European Commission, Josep Borrell, and the leaders of partner International Organisations.

“Latin America and the Caribbean, one of the most important partner regions for the OECD, was hit hard by the COVID-19 pandemic, with challenging economic and social consequences. The OECD stands ready to support the region for a strong, inclusive, resilient and green recovery.” Andreas Schaal, Director of the Global Relations Secretariat

www.oecd.org/latin-america/

OECD Ministerial Forum 2016, Paris, France.

2016

2017

2018

1st Inaugural Meeting

1st Ministerial on SOCIAL INCLUSION

1st Ministerial on GOVERNANCE

Ad hoc Ministerial on PRODUCTIVITY

1st Ministerial on PRODUCTIVITY Co -Chairs (2016-2019)

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OECD Latin America and the Caribbean Regional Programme (LACRP) timeline

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

“We, the OECD Member States, and the Latin America and Caribbean region share many values and common goals. The kind of relationship that the OECD has developed with the region is a good example of how the Organisation can be a partner in advancing our high standards and in working jointly towards more inclusive, more resilient and more sustainable economies.”

OECD Latin American & the Caribbean Regional Programme

Six years aming for Higher Standards and Promoting Better Policies in Latin America & the Caribbean

Régine Van Drieschel, Ambassador of Belgium to the OECD and chair of the OECD External Relations committee

SCAN TO READ THE PUBLICATION

March 2021

On 23 May 2019 at OECD Headquarters in Paris, France, Chile and Peru officially transferred the Programme’s cochairmanship for the 2019-2022 period to Mexico and Brazil.

4th Ministerial Summit on PRODUCTIVITY

Towards a Productive, Human-centred and Sustainable Integration in the World Economy

2019

2020

2021

2022

3rd Ministerial on PRODUCTIVITY Co-chairs 2019-2022

2nd Ministerial on SOCIAL INCLUSION

2nd Ministerial on GOVERNANCE

4th Ministerial on PRODUCTIVITY Co-chairs 2022-2025

THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 13

OECD LAC Regional Programme

Supporting the region’s reform agenda

3 years promoting better policies to increase productivity, enhance social inclusion and strengthen institutions and governance in Latin America and Social the Caribbean Inclusion

OECD-LAC Regional Programme Productivity

Governance

During the 5th Anniversary celebration, leaders from LAC and OECD countries highlighted the important role the LACRP plays in supporting the region advancing its key priorities. www.oecd.org/latin-america/regional-programme/5th-yearanniversary-2021/

OECD Latin America & the Caribbean Regional Programme

“The LAC Programme is a platform for an effective dialogue and rapprochement between the OECD and the countries of the region. The Programme has reinforced its global relevance and contributed to the prosperity of many countries of the region, some of which have recently joined the OECD.” Augusto Santos Silva, Minister of State and Foreign Affairs of Portugal Economic Organisations based in Paris

“The UK plays an active role in the Regional Programme for Latin America and the Caribbean and is proud to be a founding member of the Advisory Board. In the five years that followed, the Programme has helped the relationship between the OECD and the region to flourish. Most visibly, Colombia joined the OECD family last year, and I am delighted to welcome Costa Rica as the OECD’s 38th member. We are pleased that Peru, Argentina and Brazil continue to show interest to begin the accession process and pleased to have worked bilaterally with the Brazilian government to support reforms that move closer to membership.” Wendy Morton, Minister for Europe and Americas at the Foreign, Commonwealth & Development Office (FCDO) celebration of the LACRP

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THE OECD AND LATIN AMERICA AND THE CARIBBEAN

Online event: LACRP 5th Anniversary family photo. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 15

Supporting the region’s reform agenda

STATISTICS In 2017, the OECD LAC Regional Programme (LACRP) launched the OECD-LAC data portal, which consolidates to increase visibility and provide user-friendly access to the increasing number of OECD statistics and policy indicators on Latin America. The LACRP updates the portal with the most relevant indicators on macroeconomics, development, digital economy, health, environment, education and skills, gender, migration, public sector, taxation, trade and investment and well-being. Statistical co-operation with countries in the LAC region also includes Trade in Value Added, and several projects on the modernisation of official statistics dissemination.

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

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How’s Life in Latin America? Measuring well-being for policy making, is the result of a three-year project aimed to identify comparable metrics for monitoring multidimensional wellbeing across LAC, to highlight areas for improvement in data collection and coverage, and to explore the policy use of wellbeing frameworks in LAC countries. It has been designed in the framework of the European Union’s Regional Facility for Development in Transition, and covers Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Paraguay, Peru, and Uruguay. This report aims to support future work and continued discussions between policy actors, statistical agencies and a wide variety of societal stakeholders to put people’s well-being at the heart of government action in LAC.

Recognising the heterogeneity of the region, the LACRP has allowed for tailor-made sub-region initiatives to emerge. l

The Pacific Alliance founded in 2011 by Chile, Colombia, Mexico and Peru is one of the most ambitious integration projects of the twenty first century. The co-operation between the OECD and the Alliance of the Pacific has been key since its origins and continues evolving towards a more strategic co-operation. In 2019 the OECD and the Pacific Alliance signed a Joint Declaration laying the foundations of future co-operation and support to Pacific Alliance ProTempore Presidencies and Technical Groups. The latest joint work include Gender Equality in the Pacific Alliance (2015) and Policies for Competitive SMEs in The Pacific Alliance and Participating South American Countries (2019).

The OECD has a growing and fruitful relationship with the Common Market of the South (MERCOSUR). The participation of the OECD Secretary-General in the 2020 Ordinary Meeting of the Common Market Council and the Summit of Presidents of MERCOSUR and Associated States, provided the basis for collaboration. In November 2021 took place the first joint initiative in the form of a MERCOSUR-OECD Investment Seminar. The co-operation with the Caribbean is increasingly relevant for OECD stakeholders. In this sense, the Caribbean Community (CARICOM) was invited to participate for the first time in the 13th Steering Group of the OECD LAC Regional Programme, On this occasion, new avenues of collaboration were explored and paved the way for new potential joint projects.

Co-operation with Central America and the OECD has expanded following the creation of the LAC Regional Programme. Costa Rica is an OECD member; the Dominican Republic, El Salvador, Guatemala, and Panama are members of the OECD Development Centre and, all countries, plus Honduras, take part in the LACRP’s Steering Group. Key priorities agreed with the region in 2017 include strengthening global and regional value chains, the services sector and SMEs; improving the institutional design of the economic integration process; and advancing subregional regulatory co-operation. The Secretariat for Central American Economic Integration (SIECA) and the Central American Bank for Economic Integration (OECD-CABEI MoU signed in 2019) participated in the last Steering Group of the LACRP with a view to reinforcing this partnership forward for the 2022-2025 period.

THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 17

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

SUB-REGIONAL CO-OPERATION

Latin American Economic Outlook (LEO)

The Latin American Economic Outlook Latin American is reaching its 15th year analysing Economic Outlook 2021 the development policies in the region. It is the OECD Flagship report focused on LAC and presents the Development Centre’s annual analysis of economic and social developments in Latin America and the Caribbean in partnership with the Economic Commission for Latin America and the Caribbean (UN-ECLAC), the SCAN TO READ Development Bank of Latin America THE REPORT (CAF) and the European Commission. Each edition covers a detailed macrostructural and socio-economic overview of the region. It also includes an in-depth look at a special theme related to sustainable and inclusive development in Latin America and the Caribbean, taking into account the strategic challenges and opportunities the region will have to face in the future. Latin American Economic Outlook 2021 WORKING TOGETHER FOR A BETTER RECOVERY

The LEO is a joint annual publication produced by the OECD Development Centre, the United Nations Economic Commission for Latin America and the Caribbean (UN ECLAC), the Development Bank of Latin America (CAF) and the European Union (EU). It is the first pillar of the EU Regional Facility for Development in Transition for Latin America and the Caribbean.

Latin American Economic Outlook 2021 WORKING TOGETHER FOR A BETTER RECOVERY

The Latin American Economic Outlook 2021: Working Together for a Better Recovery aims to analyse and provide policy recommendations for a strong, inclusive and environmentally sustainable recovery in the region. The report explores policy actions to improve social protection mechanisms and increase social inclusion, foster regional integration and strengthen industrial strategies, and rethink the social contract to restore trust and empower citizens at all stages of the policy-making process. Moreover, it stresses the need to promote sustainable and adapted macro-economic frameworks to finance the recovery, as well as the importance of renewing international co-operation to support these policy actions. Finally, the publication includes three crucial cross-cutting themes: climate change and the green recovery, the digital transformation, and gender.

WORKING TOGETHER FOR A BETTER RECOVERY

Co-funded by the European Union

PRINT ISBN 978-92-64-63983-6 PDF ISBN 978-92-64-68231-3

Published in December 2021, the latest LEO analyses and provides policy recommendations for a strong, inclusive and environmentally sustainable recovery in LAC. The 2022 edition will focus on the challenges and opportunities of the green transition in LAC. “Promoting sustainable and inclusive development in Latin America and the Caribbean while countries transition to higher levels of income, should be our first priority. The vulnerabilities and shortcomings that led many voices to call for different approaches to development and international co-operation before the COVID-19 outbreak have only been amplified by the pandemic. 18 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

International Economic Forum on Latin America and the Caribbean: The International Economic Forum on Latin America and the Caribbean is one of the most prominent Europe-based events devoted to public policies in LAC. Every year, leaders from the public and private sectors, as well as highlevel representatives from International Organisations, gather to discuss different aspects of the continent’s economic development. This forum is a joint effort between the Agence Française de Dévéloppement, the Inter-American Development Bank and the OECD Development Centre. We need rigorous analysis and bold policy recommendations as countries draw their way out of the crisis. As illustrated by the call issued by the members of the OECD Development Centre Governing Board during its 6th High-Level Meeting, we need a New Deal for Development, one that is based on the principles of co-responsibility and solidarity, promotes a just recovery and places well-being at the centre of national and international policies.” Manuel Escudero, Ambassador of Spain to the OECD and Chair of the Board of the OECD Development Centre

“Strengthening the OECD’s engagement with Latin America and the Caribbean is a priority for the Development Centre. Our flagship reports like the Latin American Economic Outlook, developed in closecooperation with regional institutions, have contributed to orienting the policy agendas of our 14 LAC member countries and beyond. We stand ready to keep strengthening the OECD’s partnership with the region and support to the ambitious reform agenda that the recovery requires.” Ragnheiður Elín Árnadóttir, Director of the OECD Development Centre

All LACRP activities are intended to bring and adapt discussions emanating from OECD committees to provide the LAC region with effective working methods, comparable statistics, policy dialogues, and policy assessment and advice to advance

OECD – LAC Regional Policy Networks

LAC Investment Initiative (see page 35)

OECD LAC Fiscal Initiative OECD/IDB Latin American and the Caribbean Competition Forum (LACCF)

Responsible Business Conduct in LAC (RBC-LAC)

Take a look at the calendar of upcoming Regional Policy Network meetings here: www.oecd.org/latinamerica/events

LAC Corporate Governance of State Owned Enterprises (SOEs)

reforms. OECD LAC Regional Policy Networks (RPNs), play an important role in bringing and adapting the discussions of OECD Committees to the regional context. The engagement of LAC countries in these networks has proven to be an effective mechanism to exchange views and policy practices, and has paved the way to increased adherence of OECD legal instruments (see Annex). OECD-IDB LAC Public Integrity Network

LAC Network on Open and Innovative Government Latin American Corporate Governance Roundtable

Network of Health Systems for Latin America

OECD Centres and Academies in Latin America OECD Tax Centre Mexico City

LAC Network on Regulatory Improvement

OECD Mexico Centre for Latin America, Mexico City

OECD Latin American Anti-Corruption Initiative LAC Regional Senior Budget Officials Network

OECD/CVM Centre on Financial Education and Literacy in LAC Rio de Janiero, Brazil

OECD Regional Centre for Competition in LAC, Lima OECD/INFE LAC Regional Network for Financial Education

OECD Academy for Tax and Financial Crime Investigation Buenos Aires, Argentina THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 19 THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 19

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

A WHOLE OECD-LAC ECOSYSTEM TO SUPPORT POLICY REFORMS IN ALL AREAS OF POLICYMAKING

Working hand in hand with partners

Close co-operation with regional and global partners has been and continues to be a key feature of the OECD’s work in Latin American and the Caribbean. This partnership includes engaging in a variety of projects in the region, thereby maintaining mutual strategic relations. EU Regional Facility (“the Facility”) for Development in Transition in Latin America and the Caribbean is an initiative launched in 2018 by the European Commission in partnership with the OECD, its Development Centre and UN ECLAC. The Facility’s main objective is to support LAC countries as they transition into higher levels of development. Since its inception, 23 projects have been approved for OECD implementation: 3 Latin America and Economic Outlooks (LEO), 12 country reviews, and 8 regional projects covering areas from health, social protection, gender equality, well-being, investment, digital transformation, trade, justice, integrity and fiscal policy. In 2021, the group launched the EU Facility Joint Response to COVID-19: a unique multidimensional initiative to help the region recover from the pandemic. United Nations Economic Commission for Latin America and the Caribbean (ECLAC) partners with the OECD Development Centre to produce the annual Latin American Economic Outlook, 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. Development Bank of Latin America (CAF) has partnered with the OECD to produce the LEO, 2019, the first SME Policy Index assessment for the LAC region covering the Pacific Alliance plus Argentina, and most recently, the CAF-OECD are co-authoring the Review of Digital Government in Latin America. CAF also co-organises the LAC Network on Corporate Governance of State-Owned Enterprises. See quote on page 69. Ibero-American Secretariat (SEGIB) organises the IberoAmerican Summit, which has served as the venue for the 20 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

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. See quote on page 34. Inter-American Development Bank (IDB) is a co-organiser of the International Economic Forum on LAC in Paris, and co-organises or participates in the majority of OECD LAC regional policy networks (see page 09). The OECD and the IDB have produced joint regional publications including Boosting Productivity and Inclusive Growth in Latin America, Broadband Policies for LAC and the Government at a Glance LAC publication series. International Labour Organization (ILO) and the OECD have partnered for years to address informality and promote job quality and responsible business conduct in Latin America and the Caribbean. In March 2021, this close collaboration culminated in the ILO formally joining the OECD LAC Regional Programme’s Steering Group and increasing the synergies between the two organisations. 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 Summit Working Group (JSWG) along with 12 other International Organisations to support in the implementation of the outcomes of the Summit of the Americas. Most recently, the OECD and OAS joined forces in the preparation and launch of the report Cultivating a culture of integrity in the civil service in times of crisis (forthcoming). The World Bank contributes its extensive in-country presence and its long experience with policy applications in widely different settings and across sectors. It is able to combine intellectual and financial support to its borrowers, engage in

The Latin American and Caribbean Economic System (SELA) closely works with the OECD to promote sustainable and inclusive economic growth in LAC. In 2017, this commitment prompted a technical and institutional co-operation agreement to conduct joint projects, including the implementation of the Index of Public Policies for Micro-, Small and Medium-sized Enterprises and the launch of the SME Policy Index (SMEPI) for LAC, in 2019. EU-LAC Foundation joined the OECD LAC Regional Programme’s Steering Group in October 2020. Since then, it has actively participated in the Programme’s activities, such as the 5th Anniversary of the LACRP, and increased its involvement with the OECD. In particular, to address the different challenges faced by the LAC region in terms of health system infrastructure, social protection, fiscal situation, and post-pandemic economic recovery. “Success requires us to not only coordinate on what we are individually doing but to work in concert with one another to turn our visions of sustainable development into realities. I’m proud to say that since day one of my Presidency of the Inter-American Development Bank we have continued to find ways to improve our collaboration with like-minded partners, like the OECD, our member countries in Latin America and the Caribbean and with our partners around the world. The OECD is a critical ally in this journey, one that convenes the global community, highlights important development issues, and encourages us to work together.”

“Over the past years, the European Union has supported with determination the process of rapprochement between the OECD and Latin America; supporting the accession of countries from the region to the Organisation and creating synergies with the network of association and commercial agreements that we have threaded with Latin America and the Caribbean. This region occupies a special geostrategic position for Europe, and we must continue strengthening the bonds that already unite us our regions and overcome the challenges we face with solidarity and mutual effort.” Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy

“The OECD LAC Programme has enabled us to strengthen our partnership. For ECLAC, it has been an honour to work hand in hand with the OECD, and collaborate on joint initiatives, such as the Latin America Economic Outlook or Revenue Statistics, among many others. COVID-19 has introduced new challenges. It has increased our vulnerabilities and has highlighted the importance of continuing to work together in support of Latin America and the Caribbean. Despite the significant progress in the region over the last decade, in 2020, taking into account the effects of emergency social transfers, the number of people living in poverty rose by 22 million and the GINI index of income inequality increased by 2.9%. The pandemic has sent shock waves through society and has proven that we need multilateralism more than ever.” Alicia Bárcena, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC)

Mauricio Claver Carone, President of the Inter-American Development Bank THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 21

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

capacity building and help interpret their wider interests in the global debate. Over the years, both institutions have joined forces in LAC and contributed to the publication of various reports and indicators. Notably, to advance the OECD Peru Country Programme and by co-organising the 2nd Ministerial Summit on Productivity in LAC. See quote on page 73.

Identifying policy drivers for sustainable and inclusive economic growth and improved policies for well-being 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 wellbeing.

Outlook focused on the economic impact of COVID-19 on the region’s economy. 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 and structural reform monitoring activities include various LAC partner countries, in addition to OECD Members.

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.

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. The 2020 presentation of the Spanish and Portuguese versions of the OECD Economic

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Panama should now embark on a new reform agenda to become a sustainable and inclusive high-income country. This report urges greater productivity in sectors that contribute to job formalisation to reduce disparities in income and among regions. As developing these policies requires further resources, taxation system and private sector involvement through public-private partnerships should also be reinforced. Focusing on skills and jobs, regional development and development financing, the volume provides analysis and recommendations on three areas which are key for Panama.

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Peru has experienced remarkable socio-economic progress over the last two decades, enabling it to join the group of upper middle-income countries around 2010. However, challenges are ahead if the country is not to be caught in various development traps. Overcoming these challenges in the near future to take the economy to the next level and become a country with higher productivity, inclusive development and well-being for all will require sound policy reforms. Further efforts are needed on three main fronts: economic diversification, connectivity and formalisation of jobs. This report analyses the main challenges in these three priority areas and sets up a policy action plan. It also proposes a scorecard including a series of indicators for monitoring progress derived from the implementation of the reforms proposed in these three areas and presents the objectives for each indicator that Peru should aim to achieve by 2025 and 2030.

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The OECD Development Pathways series helps developing and emerging economies to identify innovative policy solutions to their specific development challenges. Higher levels of well-being and more equitable and sustainable growth cannot be achieved by merely reproducing the experience of industrialised countries. For each of the countries studied, the series proposes options for action in specific policy areas and at the broader strategic level. It identifies the binding constraints to development across all sectors and proposes whole-ofgovernment solutions. Panama has achieved socio-economic improvements in recent decades thanks to strong economic growth and consequent poverty reduction. Its growth model is characterised by a dual economy in which a small number of activities, including those related to the Canal and Special Economic Zones, have exhibited high productivity growth but limited job creation.

gathers all OECD books, periodicals and statistical databases.

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Multi-dimensional Review of Paraguay

growth and made progress across a range of development ed period of economic and political instability in the early 2000s. al Development Plan, setting course towards an ambitious vision e of economic growth and achieve more inclusive development of institutional, economic and social constraints that challenge its e Multi-dimensional Review of Paraguay analyses the country’s e main constraints to the country’s development. It examines five s of the Sustainable Development Goals: prosperity, people’s nd partnerships and financing.

OECD Development Pathways

lps developing and emerging economies to identify innovative t challenges. Higher levels of well-being and more equitable and merely reproducing the experience of industrialised countries. For poses options for action in specific policy areas and at the broader aints to development across all sectors and proposes whole-of-

OECD Development Pathways

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THE OECD AND LATIN AMERICA AND THE CARIBBEAN

Miguel Ceara Hatton, Minister of Economy, Planning and Development of the Dominican Republic

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.

MENT

Co-funded by the European Union

“The Dominican Republic strongly values its membership to the OECD Development Centre, and in particular our current work on the Multidimensional Review. We see this as a vital instrument to support our ongoing efforts in shaping a robust, inclusive and sustainable postCOVID-19 recovery.”

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 the reviews of Dominican Republic, Ecuador and El Salvador are ongoing.

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 works closely with LAC countries to provide

guidance and facilitate knowledge sharing 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. Sharing experiences and exchanging ideas between LAC countries and DAC members, including on OECD Recommend ations1, is enriching for all partners. Countries in LAC are global champions of engaging in triangular co-operation.

The OECD Development Assistance Committee (DAC) and the Ministry of Foreign Affairs of Peru held the third LAC-DAC Dialogue on Development Co-operation on 2-3 December 2021 during the Third LAC-DAC Dialogue on Development Cooperation. 24 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

THE OECD AND LATIN AMERICA AND THE CARIBBEAN

According to data that the DCD collects in an online repository, 42% of the 921 available projects take place in LAC. LAC is actively contributing to the OECD’s work and the Global Partnership Initiative (GPI) on Effective Development Cooperation, which found recognition in the Outcome Document of the Second UN High-level Conference on South-South Cooperation (BAPA+40) in Buenos Aires in March 2019. The LAC-DAC Dialogues on Development Co-operation have contributed to strengthening partnerships among LAC countries and DAC members and participants in achieving the 2030 Agenda for Sustainable Development. The 2021 LAC-DAC Dialogue on Development Co-operation helped to promote greater understanding and collaboration on shaping a development co-operation architecture in light of the 2030 Agenda. Working with Caribbean countries, OECD research on small island developing states (SIDS) sheds light on the COVID-19

effects in Caribbean-SIDS in the health sector COVID-19: Understanding Health risks in SIDS , as well as effects in their economic behaviour Mapping the Economic consequences of COVID-19 in SIDS, and their external debt The impact of the COVID-19 crisis on external debt in SIDS: one-year into the COVID-19 crisis, where do they stand?. Overall, LAC countries and DAC members 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, participating in DAC Peer Reviews, and keeping development partners accountable to each other. 2-3 December 2021 LAC-DAC Dialogue. More information: here.

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

1. For instance, Brazil is an Adherent to the OECD Recommendation of the Council for Development Co-operation Actors on Managing the Risk of Corruption and the OECD-DAC Recommendation on Good Pledging Practice. THE OECD AND LATIN AMERICA AND THE CARIBBEAN . 25

INCREASING PRODUCTIVITY

26 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

INCREASING PRODUCTIVITY

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. Digital transformation will contribute to advancement, greater efficiency, productivity, and improvement in companies. For instance, before the COVID-19 crisis, digitalisation in the LAC region or the use of robotics was at a bare minimum in the corporate culture. However, now is the era for new operating models and redefining business models. Digital transformation may also affect business model operations through changes in the sale and delivery of goods and services or interactions with suppliers (OECD et al. (2020), Latin American Economic Outlook 2020: Digital Transformation for Building Back Better, OECD Publishing, Paris.). The OECD has been a key player in fostering dialogue on productivity issues in the LAC region, including through the LACRP Ministerial Summits on Productivity Summit held in Santiago (2016), San José (2018) and Bogotá (2019). The OECD Global Forum on Productivity fosters international co-operation between public bodies, promoting productivity-enhancing policies, benefitting 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 relating to business dynamics, employment and productivity. The biennial in-depth country surveys prepared for Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico will continue featuring discussions surrounding productivity growth strategies. Moreover, further national OECD Reviews of Digital Transformation for the region could be undertaken, leveraging the OECD’s Going Digital analysis, and joining similar work on Brazil and Colombia. Planning is also underway for the 2022

edition of the Latin America Productivity Summit, which will be hosted by Brazil, with the support of the GFP.

Low productivity is the main explanation behind LAC country income gap Sources of income per capita differences vis-à-vis OECD economies, 2017 PAN

Labour productivity gap

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Fostering Innovation

Innovation can be a powerful driver of enhanced productivity and well-being, especially as promising new technologies emerge that can contribute to a more sustainable rebound of aggregate productivity after the COVID-19 crisis. Strengthening innovation ecosystems, implementing coherent national innovation strategies and fostering international research co-operation to harness this potential are important policy challenges in the LAC 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. Reviews of Innovation Policy have been conducted for Colombia, Costa Rica and Peru. The OECD STIP Compass - which details countries’ STI policies - provides another helpful window for LAC countries to monitor and compare their STI performance. As governments mobilised research and innovation systems to tackle the COVID-19 crisis, the STIP Compass was expanded in March 2020 to include a “COVID-19 Watch” to help governments monitor and learn from each other’s STI policy responses to the pandemic.

Online event: Artificial Intelligence in the times of COVID-19: Insights for Latin America and the Caribbean – 5 November 2020. 28 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

INCREASING PRODUCTIVITY

LAC countries are also strongly engaging in the OECD’s work on emerging technologies. Argentina, Brazil, and Peru have joined OECD countries in adhering to the OECD Recommendation of the Council on Artificial Intelligence (AI), and in 2020 Brazil became a member of the Global Partnership on Artificial Intelligence (GPAI), whose secretariat is housed at the OECD. As part of a Digital Transformation in LAC project, the OECD held a number of virtual events throughout 2020, including a seminar on “Artificial Intelligence in the times of COVID-19: Insights for Latin America and the Caribbean.” The OECD’s co-operation with LAC countries is helping build a more resilient global environment for science, technology and innovation. 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.

LAC countries are strongly engaging in the OECD’s work on emerging technologies. and governance structures to translate investments in research and innovation into positive economic and social impacts in the region.

There is strong potential to deepen the policy dialogue between the OECD and LAC countries on open science policies, mechanisms for regional scientific and technical co-operation,

licy

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OECD Reviews of Innovation Policy

dations ework conditions and innovation performance in Colombia

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How are a country’s achievements in innovation defined and measured, and how do they relate to economic performance? What are the major features, strengths and weaknesses of a nation’s innovation system? How can government foster innovation?

OECD Reviews of Innovation Policy

The OECD Reviews of Innovation Policy offer a comprehensive assessment of the innovation system of individual OECD member and non-member countries, focusing on the role of government. They provide concrete recommendations on how to improve policies that affect innovation performance, including R&D policies. Each review identifies good practices from which other countries can learn. Contents

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Overall assessment and recommendations (English, French, Spanish) Chapter 1. Economic performance and structural change: Innovation as a key driver of sustainable growth Chapter 2. Innovation: The main actors Chapter 3. The role of government

More information about the OECD Reviews of Innovation Policy series is available at: www.oecd.org/sti/innovation/reviews.

Please cite this publication as: OECD (2011), OECD Reviews of Innovation Policy: Peru 2011, OECD Publishing. http://dx.doi.org/10.1787/9789264128392-en This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org, and do not hesitate to contact us for more information.

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INCREASING PRODUCTIVITY . 29

Increasing the quality, relevance and coverage of education and skills training The OECD is working with LAC countries to improve education, training and skills systems in order to help drive economic growth, social inclusion and greater equality in the region. 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: Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Mexico, Panama, Peru, and Uruguay took part in the Programme for International Student Assessment (PISA) 2018. El Salvador, Guatemala, Jamaica, Paraguay will participate in PISA 2022 assessment for the first time. Additionally, the PISA-based Test for Schools is available in Brazil and Colombia. l

Ecuador, Guatemala, Honduras and Paraguay have participated in PISA for Development and produced national reports.

30 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Argentina, Brazil, Chile, Colombia and Mexico participated in the 2018 Teaching and Learning International Survey (TALIS). A Skills for Ibero-America Regional Ministerial was held in February 2018. Brazil, Colombia, Mexico have undertaken reviews of national policies for education or thematic reviews on assessment (Brazil, 2021), international comparative perspective (Brazil, 2021), implementing education policies (Mexico, 2019), higher education (Mexico, 2019) or school resources (Colombia, 2018). Two Colombian cities participated in the first round of the OECD Survey on Social and Emotional Skills Peru, Mexico and São Paulo joined the next round of the survey that started in 2021. Argentina, Brazil, Chile, Costa Rica and Mexico are engaged in the OECD Future of Education and Skills 2030 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 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. 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.

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

INCREASING PRODUCTIVITY

– Making

the Most of Technology for Learning and Training in Latin America examines how Latin American countries can make the most of the digital transformation to develop their students’ and adults’ skills.

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. Mexico, the Mexican state of Tlaxcala, and Peru have undertaken OECD Skills Strategy projects to assess their skills challenges and opportunities across the life course, identify priority areas for action, and develop tailored policy recommendations for building more effective skills systems that promote employment, productivity, and social cohesion.

SKILLS

Skills in ibero-America Insights from PISA 2015

Many LAC countries engage in a wide range of the OECD’s work on skills topics:

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

Career Guidance for Adults in Latin America

Adult Learning Policies: Challenges and Solutions for Latin American Countries, identifies the specific megatrends that are reshaping skill in LAC countries.

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?

Getting Skills Right

– Effective

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.

SkillS in ibero-AmericA Inghts from PIsA 2015

SkillS in ibero-AmericA InSIghtS from PISA 2015

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. Skills Outlook 2019: Thriving in a Digital World helps 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. Based on this analysis, two LAC regional reports were prepared and published in 2020: l

Getting Skills Right

Career Guidance for Adults in Latin America

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INCREASING PRODUCTIVITY . 31

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

Reviews of Vocational Education and Training (VET) have been carried out in Chile, Costa Rica, Mexico and Peru, supporting these countries in equipping young people and adults with the knowledge and competencies required for skilled employment. In March 2021, the report Getting Skills Right: Career Guidance for adults in Latin America was launched at the online ‘Future-Ready Adult Learning in Latin America Conference’. It analyses career guidance initiatives for adults in four Latin American countries, and emphasises the need to establish career guidance higher up on the policy agenda of the region.

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OECD Skills Strategy Tlaxcala (Mexico) ASSESSMENT AND RECOMMENDATIONS

ASSESSMENT AND RECOMMENDATIONS

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Effective Adult Learning Policies

OECD Skills Strategy Tlaxcala (Mexico)

D iLibrary, which gathers all OECD books, periodicals and

ore information.

Making the Most of Technology for Learning and Training in Latin America

OECD Skills Studies

http://dx.doi.org/10.1787/9789264265400-en.

OECD Skills Studies

CHALLENGES AND SOLUTIONS FOR LATIN AMERICAN COUNTRIES

ation/vet.

CD work on skills, see: www.oecd.org/skills.

www.oecd.org/skills www.oecd.org/skills/piaac/ www.oecd.org/financial/education/

Making the Most of Technology for Learning and Training in Latin America

9264087460-en.

Mary Alice McCarthy, Pauline Musset

Effective Adult Learning Policies

s, OECD Reviews of Vocational Education and Training,

A Skills beyond School Review of Peru

hool: Synthesis Report, OECD Reviews of Vocational Publishing, Paris. 9264214682-en.

OECD Reviews of Vocational Education and Training

OECD Skills Studies

es and recommendations on for inclusive growth: The crucial role of education and

ment between the supply of VET programmes and the my ross all VET programmes m VET to further opportunities in access to high quality VET expanding career guidance services

OECD Reviews of Vocational Education and Training

ional Education and Training

ng (VET) programmes are facing rapid change and n employers and unions be engaged? How can How can teachers and trainers be effectively prepared? grammes be structured? The country reports in this uestions. They form part of Skills beyond School, OECD ucation and training.

Moving forward, opportunities exists for LAC countries to engage with the OECD on skills surveys, such as PIAAC, thematic cross-country reviews, tailored national and regional skills strategy reviews, VET reviews, and adult learning reviews.

OECD Skills Studies

Skills Summit 2022 was held in Colombia on 24-25 March. Skills Summits provide Ministers and senior officials with responsibilities for skills-relevant portfolios – from employment and education to economic development and innovation – with an opportunity to learn from each other’s’ experiences in developing and implementing skills policy reforms. Summit 2022 focused on the topic of adult learning with a particular focus on the effective upskilling and of those most in need.

OECD skills surveys, analysis and country reviews can help countries to make the development and effective use of skills an important instrument for recovering more swiftly from the covid-19 crisis and paving the way to greater prosperity

School Review of Peru

and wellbeing in the future. Involvement in OECD skill work allows countries of the LAC region to benchmark their progress against other countries, identify priority areas for action, learn from international good practices, and develop and implement tailored policy reforms.

INCREASING PRODUCTIVITY

Improving financial literacy

The OECD provides valuable evidence-based information to impart financial education and promote inclusion programmes in a wide range of Latin American and Caribbean countries. Financial education can contribute to optimising the strength and the quality of LAC economies and ensure that all have the best possible opportunities. 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. The LAC Network meets 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, the Centre – based in Rio de Janeiro. Mexico and Peru - use the OECD/INFE instrument to measure the financial levels of owners of micro, small and medium enterprises, Brazil, Chile, Colombia, and Peru participate in the Financial Literacy Option of the OECD Programme for International Student Assessment. Both of these methods of engagement allow for the collection and analysis of evidence to inform national strategies for financial literacy and related public policies in the field of financial inclusion and social policies. Going forward, new evidence collected in LAC on the financial literacy and inclusion levels of students, adults and owners of micro and small businesses will feed into responses to the COVID 19 crisis and into the design and implementation of national strategies on financial literacy and inclusion.

The 2018 annual meeting of the OECD/CVM Centre took place on the trading floor on the Brazilian Stock and Derivatives Exchange in São 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

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. The OECD/IDB Latin American and Caribbean Competition Forum (LACCF) continues to take place every year. In 2021, the Forum focused on compliance programs, efficiencies in vertical restraints and payment card interchange fees. The OECD Regional Centre for Competition (RCC) in Latin America provides training activities for officials of competition authorities from the region since 2019. The RCC is a partnership between the OECD and the Peruvian Competition Authority (INDECOPI – Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual). The OECD has also worked closely with countries including Brazil, Peru and Ecuador in recent years. In 2020 and 2021, the OECD conducted peer reviews of competition law and policy in Ecuador and El Salvador, as well as projects on fighting bid rigging in public procurement with Brazil and Peru. The OECD is currently working with Brazil and Colombia on the competition assessment of laws and regulations in selected sectors of the economy. The activities of the Regional Centre for Competition (RCC) in Latin America have benefited more than 500 civil servants from 25 countries of Latin America and the Caribbean since 2019. This is done through training activities including workshops and conferences.

www.oecd.org/competition

Workshop on Competition Advocacy of the OECD Regional Centre for Competition (March 2020).

“Latin America has undoubtedly been the hardest-hit region by COVID-19 in economic, social and health terms, as is shown by the record 7% decline of GDP in 2020 and regional output not expected to regain its pre-pandemic levels until 2022. Therefore, the Ibero-American General Secretariat’s (SEGIB) present work is set on building back better from this triple crisis which disproportionately affects the most vulnerable. Our endeavors aim at creating formulas that will allow a sustainable and resilient recovery, while simultaneously tackling the long-standing multiple inequalities this multidimensional crisis has exacerbated. We believe the best way to achieve development is by improving the productivity of our productive fabric through innovation and digital transformation, in close allignment with the Sustainable Development Goals. In this sense, our commitment to the 2030 Agenda is a basic pillar to pursue advances in pressing issues such as equality, environmental protection, education, good governance, and our cities’ redesign. Towards these shared goals, SEGIB is proud to work alongside the OECD and the LAC Regional Programme.” Andrés Allamand, Secretary-General of the Ibero-American General Secretariat

34 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

INCREASING PRODUCTIVITY

Enhancing the investment environment and responsible business conduct Since the COVID-19 pandemic, the OECD LAC Investment Initiative has been involved in the virtual discussions relating to policy making in the areas of health and economy. Such discussions used to take place previously in biannual regional events and meetings. Moreover, there have been recent developments such as some countries tending to formal adherence to OECD instruments on investment and undergoing an OECD Investment Policy Review. For more than 10 years, the OECD LAC Investment Initiative has brought together - on a biannual basis, alongside the Investment Committee meetings, and through regional events - the representatives from Argentina, Brazil, Chile, Costa Rica, Colombia, El Salvador, Guatemala, Honduras, Mexico, Peru, Paraguay, Panama and Uruguay and interested OECD countries.

In 2021, Uruguay became the 50th country and 8th LAC country to adhere to the OECD Declaration on International Investment and Multinational Enterprises. Adherence was supported by the investment policy review (IPR) of Uruguay, which documented recent progress to align investment policies with the national development strategy in pursuit of the Sustainable Development Goals, as well as remaining challenges to improving the business climate. In 2020 and 2021, OECD work focused on the impact of COVID-19 in LAC countries. This included: a dedicated webinar with LAC Investment Promotion Agencies (IPAs); policy notes on regional socio-economic implications of COVID-19 and policy priorities; and a discussion with 100 representatives from 14 LAC and OECD countries on the latest regional figures for foreign direct investment (FDI).

FDI flows in LAC economies 2005-2020 (USD billion) 250 000

4% USD million

As a share of GDP (right axis)

200 000

150 000

100 000 1% 50 000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Note: FDI flows in LAC include information from Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Paraguay, Peru, and Uruguay. Source: FDI sources: OECD FDI data bases, IMF Balance of Payments and country websites. Series in relation to GDP uses current prices from the main OECD indicators and the IMF’s World Economic Outlook. INCREASING PRODUCTIVITY . 35

Enhancing the investment environment and responsible business conduct

In the future, the work of the OECD on investment in the region will focus on delivering further Investment Policy Reviews, encouraging adherence to additional investment instruments, bringing a wider group of LAC countries closer to the Investment Committee, conducting follow-up analysis on investment policy, and implementation of the project on RBC. For example: El Salvador, Guatemala and Honduras have expressed interest in a regional IPR review that could be realised as soon as funding is available; individual IPAs and their governments are seeking further OECD advice on specific aspects of their operations; and countries such as Brazil, Peru and Uruguay could strengthen their relations with the OECD through adherence to the OECD Capital Movements Code.

responsible business conduct (RBC) in nine Latin American countries: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Panama and Peru. The RBC-LAC Project is financed by the European Union and focuses on three priorities: 1) reinforcing policies for RBC; 2) increasing the uptake of due diligence practices by business operating in or from LAC; and 3) strengthening National Contact Points (NCPs) for RBC across the region. The Project, which covers 2019–2022, has produced a number of outputs, including RBC Factsheets providing an overview of RBC issues and policies; RBC Policy Reviews providing an in-depth analysis in the area; capacity building for business to undertake due diligence; and peer learning and capacity building for LAC NCPs. Through its activities and outputs, the RBC-LAC Project is contributing to a greater knowledge and uptake of practices and standards for business to contribute to more sustainable and inclusive economies and for the LAC region to recover from the COVID-19 crisis.

The OECD works with the ILO and the UN Office of the High Commissioner for Human Rights (OHCHR) to advance

FDI flows in the largest LAC economies 2019-2020 (USD billion) 4

ARG

-1 BOL -0.2

CHL

COL

2 3 1.0 1.0 0.3 0.7

CRI ECU SLV MEX PER URY

- 10

3 5

OECD Responsible Business Conduct Policy Reviews

MEXICO 12 14

2020 2019 29

0.6 0.6 3

PGY

Responsible business conduct

BRA

OECD Investment Policy Reviews

URUGUAY

9 10

Sources: OECD FDI database for Argentina, Brazil, Chile, Colombia and Mexico. FDI flows on a directional basis for Costa Rica were compiled from the website of the Central Bank of Costa Rica. For the other LAC countries, two data come from the IMG, Balance of Payment (BOP) database. www.oecd.org/investment. 36 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

OECD Investment Policy Reviews URUGUAY

Note: Fixed FDI from Brazil. Chile, Costa Rica and Mexico are shown on a directional basis, while flows from the other LAC economies are on an asset / liability basis.

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INCREASING PRODUCTIVITY

Promoting trade and integration in global value chains The OECD supports Latin America and the Caribbean countries as they seek to move up global value chains (GVCs) and enhance their international investment and trade as part of their growth agendas. The OECD collaborates with countries in the LAC region on a range of trade-related issues: l

The 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 enhance resilience. The OECD’s Services Trade Restrictiveness Index (STRI) database covers 45 countries, including Brazil, Chile, Colombia and Mexico, in 22 services sectors. The OECD-WTO Trade in Value Added (TiVA) database currently covers 62 countries, including Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. The OECD Digital Trade Inventory (DTI) includes 32 economies in the LAC region, providing an overview of the rules, standards and principles that underpin the existing digital trade environment with the aim to help governments navigate the evolving policy landscape.

Both OECD and LAC partner countries benefit from the inclusion of more LAC countries in OECD databases like the STRI, TFIs, TiVA and DTI, which enables benchmarking against a wide range of regions and countries, as well as the sharing of a diverse range of experiences. The OECD’s Development Centre Initiative on Global Value Chains (GVCs), Production Transformation and Development provides a space for engagement with LAC countries on promoting sustainable and inclusive production transformation. The Initiative is a global platform for policy dialogue where

OECD and non-OECD countries share knowledge on an equal footing on how to reap the benefits of globalisation. The Initiative is also supporting countries in Latin America in enhancing the quality and impact of policies and in identifying a roadmap for future reforms through the Production Transformation Policy Reviews (PTPRs). LAC Countries, such as Chile, Colombia and the Dominican Republic, have already taken steps in implementing the recommendations of the PTPRs. Going forward, the OECD will work to further expand the inclusion of LAC countries in its evidence gathering and analytical work. Upcoming outputs include the 2021 TFI Update, as well as the Brazil Digital Market Openness Review.

www.oecd.org/trade

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

Governance and impartiality

Involvement of trade community

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

Central America

Formalities – documents

Caribbean

Best practice (top 25% performers)

INCREASING PRODUCTIVITY . 37

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 inclusive economic growth, formalisation, and diversification as primary development 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) an analytical tool developed by the OECD, in co-operation with international partners, to map SME policies

and programmes and to assess alignment with good practice over time. The Index was developed for emerging economies within the context of the Organisation’s Global Relations programmes. The SME Policy Index includes a Compare your Country interactive data visualisation tool allowing to compare the policy results for the seven countries assessed (Argentina, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay). The tool allows to see how countries perform in the different dimensions and sub-dimensions of the Index. The OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE) in collaboration with the IDB and Santander Universal is also undertaking a review on entrepreneurial and innovative Higher Education Institutions (HEIs) in Latin America (forthcoming 2022). The review analyses how universities promote entrepreneurship and innovation in their ecosystems in six countries (Chile, Colombia, Mexico, Brazil, Argentina and Uruguay). The analysis on entrepreneurial and innovative universities is the first to be undertaken by CFE in LAC. It will enrich the analysis already carried out by CFE on entrepreneurial and innovative practices in HEIs, under the framework of the OECD/ EC HE Innovate.

SMEs face a variety of challenges in their development, covering multiple policy domains. 38 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

The report on entrepreneurial and innovative HEIs will be completed in 2022. The review process will conclude with a highlevel event in Brazil to launch the report. The process also aims at creating a community of entrepreneurial universities in LatinAmerica and connecting these institutions with their counterparts in other OECD countries (in Europe and Asia-Pacific).

www.oecd.org/industry/smes

INCREASING PRODUCTIVITY

Revitalising 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.

rethinking tourism success to promote more sustainable and inclusive tourism development. The next (2022) edition of OECD Tourism Trends and Policies will take stock of the changed policy context for tourism following COVID-19, with a strong focus on lessons learned from the policy response and implications for the future. The main chapters will be on i) Tourism trends and policy priorities for recovery, ii) Enhancing resilience of the tourism ecosystem to future shocks, and iii) Promoting a green tourism recovery. The 2022 edition will focus on active, forward-looking policies to support a sustainable, inclusive and resilient recovery, with synthesis tables of the main and most recent statistical indicators. Chile, Mexico, Colombia, Costa Rica, Brazil and Peru are again expected to participate.

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. The tourism economy has been hit hard by the COVID-19 pandemic. Chile, Colombia, Costa Rica, Mexico, Brazil and Peru have been active in the Tourism Committee’s work to support the response and recovery efforts in tourism. In 2019, Peru became a Participant in the Tourism Committee after successfully hosting the 2018 Global Forum on Tourism Statistics in Cusco, co-organised by the OECD and the Statistical Office of the European Union (Eurostat), along with Peru’s Ministry of Foreign Trade and Tourism (MINCETUR) and the National Institute for Statistics and Information (INEI). The 15th edition of the Forum attracted around 120 participants from 39 countries, with sessions focusing on: Regional and sub-national tourism statistics, Economic measurement dimension of tourism, Sustainable Development Goals and sustainability of tourism, Innovative sources and mobile positioning data, and Measuring the activities and the impact of the collaborative economy.

www.oecd.org/cfe/tourism

OECD Tourism Trends and Policies 2020

The 2021 edition of the Global Forum on Tourism Statistics, Knowledge and Policies will take place on 3-5 November 2022.

OECD Tourism Trends and Policies 2020

The 2020 edition of OECD’s flagship tourism publication, OECD Tourism Trends and Policies, analyses tourism performance and policy trends across 51 OECD countries and partner economies, including Chile, Mexico, Colombia, Costa Rica, Brazil and Peru. Thematic chapters provide insights on preparing tourism businesses for the digital transformation, and

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INCREASING PRODUCTIVITY . 39

Boosting agricultural productivity and ensuring food security The OECD and a number of LAC countries are collaborating for the analysis and evaluation of agricultural policies. This collaboration includes the exchange of information relating to agriculture practices in the region, government funds dedicated to agriculture, land use, trade of agricultural commodities among others. Six LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico) are included in the OECD’s Agricultural Policy Monitoring and Evaluation report 2021. The annual report measures government support to agriculture for 54 countries that account for almost three-quarters of global agricultural output. In 2020, an initiative was launched to create an inter-agency collaborative space to share information and studies on

agriculture of the LAC region. Eight international organisations are now participating in this effort, which is coordinated by FAOLAC. As part of this initiative, a virtual seminar took place in November 2020 called ”¿Cómo recuperar y transformar los sistemas agroalimentarios de América Latina y el Caribe post COVID-19?” where countries and IOs, including the OECD participated. In addition, in July 2021, a webinar was held to present the main findings of OECD’s Agricultural Policy Monitoring and Evaluation report 2021 to the Latin American audience. The OECD-FAO Agricultural Outlook (also available in Spanish) includes a regional brief on agricultural commodity markets in the LAC region in the 2020 and 2021 edition. The brief provides land use, and supply demand and trade estimates of major agricultural commodities for the region, as well as for Argentina, Brazil and Mexico.

Trends in export market shares of the Latin America and the Caribbean for major agricultural products % 70 2008-10

2018-20

60 50 40 30 20 10 0

Maize

Soybean

Bovine meat

Source: OECD/FAO (2021), “OECD-FAO Agricultural Outlook”, OECD Agriculture statistics (database). http://dx.doi.org/10.1787/agr-outl-data-en 40 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Poultry meat

2030

INCREASING PRODUCTIVITY

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 a regional and global agricultural and fisheries policy ready to take on unprecedented challenges and to benefit from exciting new opportunities. The expansion of the policy monitoring effort to LAC countries pursuing different producer support policies broadens the evidence base for all OECD members. Building on this existing collaboration with countries in the region, the OECD is working to develop additional spaces for targeted policy dialogue amongst regional policy makers for productive and sustainable food systems.

www.oecd.org/agriculture

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...

OECD‑FAO Agricultural Outlook 2021‑2030

ADDRESSING THE CHALLENGES FACING FOOD SYSTEMS

As of 2021, six LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico) are part of the agro-environmental indicators database (AEIs). There are the country profiles of Chile, Colombia and Costa Rica on agriculture and water policies.

Agricultural Policy Monitoring and Evaluation 2021

On fisheries and aquaculture, seven LAC countries are part of the OECD Fisheries Support Estimate (FSE) and the OECD fisheries and aquaculture database that collects annual data on production, trade, value for fisheries and aquaculture. There are country notes on fisheries for Argentina, Chile, Colombia, Costa Rica and Mexico.

OECD‑FAO Agricultural Outlook 2021‑2030

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INCREASING PRODUCTIVITY . 41

ENHANCING SOCIAL INCLUSION

42 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

ENHANCING SOCIAL INCLUSION

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 huge transformations in the corporate world. EMPLOYMENT The pandemic had a dramatic socio economic impact, affecting the most vulnerable groups in Latin America and the Caribbean. Nearly 60% of workers in LAC are informal. Many are selfemployed

at subsistence level, on daily living wages and at risk of slipping back into poverty. Before the crisis, close to 40% of total workers were not protected by any safety net.1 In 2020, the OECD organised the 11th edition of the Summer School, gathering over 320 participants from across the LAC region. The event addressed key issues related to local development from the perspective of building the territorial “capital” in LAC regions and cities.

Workers without labour-based social insurance and main social assistance schemes (%) 70 60 50 40 30 20 10 0

SLV

HND

PER

PRY

COL

ECU

MEX

BRA

BOL

CRI

ARG

CHL

URY

LAC average

Note: Workers without a safety net and firms likely to close owing to the coronavirus (COVID-19) crisis in selected Latin American countries Source: ECLAC (2020d), “Sectors and businesses facing COVID-19: Emergency and reactivation”, Special Report COVID-19 No.4 and Basto-Aguirre, Nieto-Parra and Vázquez-Zamora (2020), Informality in Latin America in the post COVID-19 era: Towards a more formal “new normal”?, Vox Lacea. 1. OECD et al., Latin American Economic Outlook 2020. ENHANCING SOCIAL INCLUSION . 43

The Summer School is a vector for knowledge exchange, peer-learning and co-operation between OECD Members and LAC countries.

YOUTH The OECD report Investing in Youth: Peru was launched in Lima in 2019 at an event hosted jointly by the Ministry of Foreign Affairs and the Ministry of Labour and Employment Promotion. The report 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.

Investing in Youth

Youth", which builds on the expertise of the es covers both OECD countries and countries ging economies. The report provides a detailed ducation and training policies. Its main focus is ing (the "NEETs").

PERU

COMMUNITY AND LOCAL DEVELOPMENT Since 2010, the OECD International Summer School on Community and local development in Latin America and the Caribbean 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. 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.

n Brazil (2014), Latvia and Tunisia (2015), way (2018).

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

Investing in Youth PERU

305823-en.

D books, periodicals and statistical databases.

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9HSTCQE*dafibg+

44 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Over more than a decade, the Summer School has served as a platform to build a strong community of practice, network of more than 300 policy makers, administrators and practitioners from the LAC region with a common understanding of the importance and functioning of regional and local development strategies. Moreover, the Summer School is a vector for knowledge exchange, peer-learning and co-operation between OECD Members and LAC countries.

ENHANCING SOCIAL INCLUSION

The Summer School will continue to strengthen and expand its network and community of graduates in the LAC region. New tailored capacity building and study activities will be pursued on demand across the LAC countries and region, taking stock of the capacity building approach and expertise of the OECD Trento Centre for Local Development. The Local Employment and Economic Development Programme is increasingly engaging in Latin American on topics such

as the links between culture and creative sectors and local development and the social economy. For example, new reviews are underway on these topics in Colombia and the OECD Global Action “Promoting Social and Solidarity Economy Ecosystems”, funded by the European Union’s Foreign Partnership Instrument, and covers more than 30 countries, including Mexico and Brazil.

www.oecd.org/employment

The participants of the 10th edition of our International Summer School for community and local development in Latin America and the Caribbean, held on 15-26 July 2019 in Trento, Italy ENHANCING SOCIAL INCLUSION . 45

Tackling inequality and informality in the times of COVID-19 Reducing inequalities in several dimensions remains one of the region’s key priorities. Although differences across countries in the region 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. The OECD is supporting LAC countries to effectively design policies to tackle inequality and strengthen social protection. Latin American labour markets have traditionally been informal, fragile and exclusive. “Informal households” – those depending on the informal economy for their earnings – are the most affected by the COVID-19 crisis, facing loss of employment and labour income. The OECD is increasingly engaging with the LAC region on these issues, providing comparative data and policy analysis: l

In the 2019 edition of the Latin American Economic Outlook (LEO) shows how vulnerable most LAC economies were to the COVID-19 crisis due to their high informality and inequality levels and the importance of boosting formal employment as a key for recovery. The Social Expenditure in Latin America project provides comparable social expenditure data at the programme level for 10 countries in the region. The OECD is working with CEPAL to develop, expand and upgrade existing information using the methodology of the OECD Social Expenditure Database (SOCX). The project will involve joint workshops on Social Expenditure. The OECD Development Centre’s Key Indicators of Informality based on Individuals and their Household (KIIbIH) database relies on household surveys from 28 countries to derive harmonised and comparable indicators across countries related to informal employment measured at the level of individuals and their households.

46 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

The OECD working paper on Inequalities and Emerging Economies describes inequality and poverty trends in selected emerging economies, including Brazil, Colombia and Costa Rica as well as Bolivia, Dominican Republic, Ecuador, Panama, Paraguay, Peru and Uruguay. The Under Pressure: The Squeezed Middle Class report – which looks at challenges facing the middle class in OECD countries – was launched in New York with the UNDP Assistant Secretary General for Latin America and the Caribbean Luis Felipe López-Calva.

ENHANCING SOCIAL INCLUSION

To respond to the call of understanding better the implications of informality for workers and dependent members, in particular on social protection, the OECD Development Centre (DEV) is producing the report “Labour informality and households’ vulnerabilities in Latin America”. This work will present some of the challenges and policy actions that LAC governments need to address in economies with high levels of informality by using the household dimension.

systems in Latin America and the Caribbean. In addition, the OECD provides support in the area of pensions. The 2021 edition of Pensions at a Glance will provide various pension indicators in Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico, including the modelisation of future pension levels, and will discuss pension policy measures undertaken by OECD Members over the past two years. As part of the Social Expenditure in Latin America project, the OECD organised workshops with regional consultants and expert government officials in Santiago, Chile in July 2019 and January 2020.

The joint OECD-ILO report Tackling Vulnerabilities in the Informal Economy was launched in May 2019, and describes global trends in informality, in many LAC countries. In addition, the OECD Development Centre (DEV) is producing the report “Labour informality and households’ vulnerabilities in Latin America”. This work will present some of the challenges and policy actions that LAC governments need to address in economies with high levels of informality by using the household dimension.

The OECD released a Review of Pensions Systems in Peru in September 2019 to support the government efforts in this area. A cohesive society works towards the well-being of all its citizens, fights exclusion and marginalisation, creates a sense of belonging, promotes trust, and offers the opportunity of upward mobility. OECD analysis will continue to identify effective policy options to reduce inequalities across many dimensions including incomes, gender, age, race or labour market status.

The OECD developed an analysis of the challenges faced by LAC countries during the COVID-19 pandemic, including the political, economic and social consequences.

www.oecd.org/health The note on “COVID-19 in Latin America and the Caribbean: Regional socio-economic implications and policy priorities” covers the socioeconomic consequences of the COVID-19 crisis Under Pressure: The Squeezed Middle Class and presents policy recommendations for the region.

Middle-class households feel left behind and have questioned the benefits of economic globalisation. In many OECD countries, middle incomes have grown less than the average and in some they have not grown at all. Technology has automated several middle-skilled jobs that used to be carried out by middle-class workers a few decades ago. The costs of some goods and services such as housing, which are essential for a middleclass lifestyle, have risen faster than earnings and overall inflation. Faced with this, middle classes have reduced their ability to save and in some cases have fallen into debt. This report sheds light on the multiple pressures on the middle class. It analyses the trends of middle-income households through dimensions such as labour occupation, consumption, wealth and debt, as well as perceptions and social attitudes. It also discusses policy initiatives to address the concerns raised by the middle class, by protecting middle-class living standards and financial security in the face of economic challenges.

Consult this publication on line at https://doi.org/10.1787/689afed1-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.

In the context of the EU Regional Facility for Development in Transition, the OECD is preparing a report to identify 9HSTCQE*fecidj+ alternatives to finance the expansion of social protection

Under Pressure: The Squeezed Middle Class

The note on “COVID-19 in Latin America and the Caribbean: An overview of government responses to the crisis” highlights the government measures enacted to mitigate the crisis and considers long-term policy considerations towards the objective of building back a better future, with more inclusive, sustainable and resilient economies.

Under Pressure: The Squeezed Middle Class

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ISBN 978-92-64-54283-9

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ENHANCING SOCIAL INCLUSION . 47

Tackling gender inequality

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

The LAC policy dialogue meeting and the country case study of Brazil on women’s unpaid care and domestic work allowed for a deeper understanding of region-specific opportunities and challenges, and helped identify lessons learned to be replicated in other contexts. Policy lessons were integrated into the analytical report Enabling Women’s Economic Empowerment: New Approaches to Unpaid Care Work in Developing Countries.

RECOMMENDATIONS ON GENDER EQUALITY The OECD Development Assistance Committee (DAC) Recommendation on Ending Sexual Exploitation Abuse and Harassment in Development Co-operation and Humanitarian Assistance (2019) SIGI 2020 Regional Report for Latin America and the Caribbean Gender equality and women’s empowerment can only be achieved if countries take action to tackle and eliminate discrimination in their legal frameworks, social norms and practices. The SIGI 2020 Regional Report for Latin America and the Caribbean provides new evidence-based analysis on the setbacks and progress in achieving gender equality between 2014 and 2019. The report uncovers discrimination in social institutions faced by Latin American and Caribbean women in various dimensions; within the family and household context, in relation to physical integrity and access to productive and financial resources, as well within the political and civil spheres. It also explores various development perspectives such as the cost of discriminatory social institutions for Latin American and Caribbean countries and the socio-economic consequences of the COVID-19 pandemic for women and girls. Building on the regional and sub-regional analysis of how discriminatory social institutions continue to hinder efforts toward SDG 5, the report provides a set of policy recommendations to reshape gender norms, promote women’s empowerment and build a truly inclusive society.

SIGI 2020 Regional Report for Latin America and the Caribbean

CROSS-COUNTRY ANALYSIS AND DATA

PRINT ISBN 978-92-64-18278-3 PDF ISBN 978-92-64-84480-3

TOWARDS A BETTER SHARING OF PAID AND UNPAID WORK

48 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

SIGI 2020 Regional Report for Latin America and the Caribbean

Gender Equality in Chile

The Social Institutions and Gender Index (SIGI) is a unique cross-country measure of discriminatory social institutions, defined as formal and informal laws, social norms, and practices that restrict the rights, access to empowerment opportunities and resources for women and girls. The SIGI 2020 Regional Report for Latin America and the Caribbean uncovers discrimination in social institutions faced by

Social Institutions and Gender Index

LAC REGION

Social Institutions and Gender Index

The project Gender Equality in the LAC region: towards better sharing of paid and unpaid work, carried out jointly by the OECD Directorate for Employment Labour and Social Affairs and the OECD Global Relations Secretariat for Latin America and the Caribbean, analyses gender gaps in in economic and educational outcomes, including gender attitudes and the distribution of unpaid work. The main output consists of four country reviews, on Chile, Colombia, Costa Rica and Peru and a regional report. Each review puts forward a comprehensive policy framework to reduce the unpaid work burden falling on women, and to increase women’s labour participation and income. The review also includes the impact of the COVID-19 crisis and how policy priorities have to change to recover stronger from the crisis. The project benefits the support and the financial contribution of the EU Facility for Development in Transition in Latin America and the Caribbean.

LAC women within the family and household context, in relation to physical integrity and access to productive and financial resources, as well as within the political and civil spheres.

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ENHANCING SOCIAL INCLUSION

represents an important step by DAC members and international community as a first international standard in this area.

IN-DEPTH COUNTRY REVIEWS Embedded in the international perspective and based on good practices in OECD countries, the OECD work on gender equality has helped raise awareness among policy makers In Latin America about the important policy reforms to promote gender equality and women’s empowerment.

“Increasing productivity, advancing social inclusion and straightening institutions & governance are OECD-LAC priorities fully shared by Canada. This is because they point the way toward a better future in the region. They are especially relevant as we plan out post-pandemic future, because where there was poverty, inequality, irregular migration and instability – before the pandemic – they are magnified now, with devastating consequences for those living in the most vulnerable and marginal circumstances including women and girls.” Karina Gould, Minister of International Development of Canada

A more balanced sharing of paid and unpaid work is good for the well-being of families and its individual members. It also benefits the economy and society as a whole, as a better allocation of labour market resources can spur higher economic growth.

ENHANCING SOCIAL INCLUSION . 49

Tackling gender inequality

The OECD reviews on Gender Equality in LAC provide a High Level platform for Ministers and High Level Representatives, from the region, OECD countries and the EU engage in a dialogue to exchange experiences and best practices. Since its launch during the ECLAC XIV Regional Conference on Women in LAC, three high level events have been organised with its members including the launch event Opportunity Has No Gender: Unlocking Women’s Economic Potential in LAC organised in January 2020; Gender equality in LAC in times of COVID-19: Towards a better sharing of paid and unpaid work in March 2020. In July 2021, the review for Chile was launched and the reviews for Colombia, Peru and Costa Rica are to be published in 2022. Going forward, the OECD is looking to include more countries in the OECD Series on Gender Equality by carrying out additional analyses of gender gaps in educational, social, and employment outcomes in selected Latin American and Caribbean countries.

Results show that LAC countries reporting on SDG indicator 5.c.1 are experiencing challenges moving beyond the planning phase to putting in place mechanisms to systematically track allocations to gender equality and women’s empowerment throughout the budget cycle. While nine LAC countries report having policies and programmes in place to address gender gaps, only Guatemala reported having mechanisms to track resource allocations to implement them .

www.oecd.org/gender/

OECD Reviews of Labour Market and Social Policies

COLOMbia

2016

The recent OECD Accession Reviews of Labour Market and Social Policies of Colombia and Costa Rica provide extensive recommendations on improving employment outcomes for women. The first OECD Series on Gender Equality in Latin America and the Caribbean builds on a comprehensive database, which allows to compare regional countries with OECD countries on indicators of key relevance to assess gender gaps in education and labour market outcomes.

OECD Reviews of Labour Market and Social Policies

The Colombian Government has undertaken important reforms in recent years to address labour market and social challenges, and the efforts are slowly paying off. However, further progress is needed to enhance job quality and well-being for all. The OECD invites the Colombian Government to tackle labour market duality, generate trust between the social partners, develop inclusive and active social policies, and get the most out of international migration.

Chapter 2. Towards more equal job opportunities in Colombia Chapter 3. Enforcing labour rights in Colombia Chapter 4. Improving redistribution in Colombia through social policy Chapter 5. Making the most out of international migration for Colombia

IMPLEMENTING SDG 5

50 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

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.

OECD Reviews of Labour Market and Social Policies

COSta RiCa

OECD Reviews of Labour Market and Social Policies COSta RiCa 2017

The OECD Development Co-operation Directorate, together with UNDP and UN Women are custodian agencies of SDG indicator 5.c.1 “Proportion of countries with systems to track and make public allocations for gender equality and women’s empowerment”. The indicator measures 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.

Consult this publication on line at http://dx.doi.org/10.1787/9789264244825-en.

OECD Reviews of Labour Market and Social Policies COLOMbia

Chapter 1. Strong growth but unequal Colombian society

te ial pro e soc dialogu protection l social socia te ration ation tion mig l dialogue migr e social pro n protec n socia ectio dialogu ectio social l prot l prot socia social ogue socia ration migr ation ial dial gue migr ation n tion mig social dialogue ial prote ion soc dialo ectio n migrat ection social protec l prot soc ion s ectio e ial socia tion rat prot l soc ogu ation e l prot socia dial protec socia tion mig gue migr dialogu gue migr ation social social gue migr ation l dialo protec social n socia ration dialo social l dialo n socia ration ection social ectio socia tion mig social protectio dialogue l prot ration lity mig y l prot protec socia malit social atio lity mig ation y socia infor informa social malit ation gue migr ration gue migr infor ogue informa l dialo l dialo gue migr lity mig ial dial social migr ation tection ection socia l dialo n socia ogue informa n socia ion soc ial pro protectio l prot y so ial dial e soc migrat social protectio protection malit y social y socia malit ion soc ation informalit y dialogu ial infor infor malit ation ation migrat e soc infor social tection gue migr gue migr dialogu l dialogue migr migration rmality l dialo ial pro l dialo e soc social lity n socia n socia tion info protection socia ogu ectio rma ectio tec l prot l prot ial dial y socia ial pro tion info malit y social socia malit e soc ion soc infor protec infor migrat dialogu gue migr ation ation social social gue migr rmality dialo l dialo ration ection social socia tion info lity mig y l prot protec malit y socia infor informa social malit ation infor ogue gue migr ial dial migr ation l dialo n socia ion soc migrat social protectio

COLOMbia

Contents

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POLICY iSbn 978-92-64-24467-2 SOCIAL 81 2015 24 1 P MARKET LABOUR SOCIAL DIALOGUE ICY G RATION ALITY IAL POL DIALO E MIG Y I NEQU INEQUALITY SOCIAL KET SOC DIALOGU ET SOCIAL POLIC ALITY L POLICY IAL T SOCIA OUR MAR POLICY INEQU SOCIAL OUR R MARK R MARKE ION LAB KET SOC ABOU UALITY LABOU ION LAB GUE ET S OCIAL ION L MIGRAT MARK OUR MAR MALIT Y MIGRATION LITY MIGRAT ICY INEQ Y M IGRAT L DIALO LABOUR MALIT SOCIA IAL POL INFOR ION LAB RMA ALITY MIGR ATION DIALOGUE INEQUA KET SOC L DIALOGUE INFOR LITY MIGRAT E INFO Y INEQU SOCIAL MAR OGU POLICY ALITY L POLIC SOCIA DIAL ET SOCIA ALITY LABOUR INFORMA L POLICY INEQU SOCIAL ET SOCIA MARK SOCIAL Y INEQU MARK OGUE T SOCIA LABOUR MARKET L POLIC UALITY LABOUR MIG R MARKE IAL DIAL SOCIA ATION MIGR ATION LABOUR OGUE ICY INEQ Y MIGR GUE ITY SOC Y MIGRATION LABOU IAL DIAL L DIALO RATION IAL POL GUE INFORMALIT INEQUAL INFORMALIT ITY SOC LITY MIG INEQUALITY SOCIA KET SOC L DIALO DIALOGUE SOCIA Y INEQUAL INFORMA OUR MAR SOCIAL POLIC E ALITY ICY L LAB POL ION Y INEQU ET SOCIA DIALOGU MARK SOCIAL MIGRAT ET SOCIAL POLIC SOCIAL LABOUR MARKET MARK ATION UALITY OUR Y MIGR INEQ LABOUR MALIT ION LAB POLICY INFOR GUE GUE MIGRAT L DIALO SOCIAL L DIALO SOCIA RMALITY INEQUALITY SOCIA ALITY INFO E Y INEQU DIALOGU ET SOCIAL POLIC SOCIAL MIGR ATION

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POL SOCIAL

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MALIT

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ENHANCING SOCIAL INCLUSION

Better understanding and harnessing migration flows More than 30 million people from the LAC region reside outside their country of birth and in an OECD country. LAC leaders are increasingly putting international migration at the top of regional policy agendas. Flows of youth and women have gained particular attention, and intra-Latin American migration is increasingly important. The OECD supports LAC in this policy domain through rigorous monitoring of migration and integration outcomes, the experience of OECD countries in managing and integrating migrants, as well as comparative projects assessing migration from a development perspective. l

Through the Continuous Reporting System on International Migration in the Americas (SICREMI, its acronym in Spanish), modelled on the OECD’s Continuous Reporting System on Migration, the OECD has partnered for many years with OAS to bring together national correspondents on a regular basis for a dialogue on migration and integration policies. The flagship publication of the project, International Migration in the Americas, has been published four times between 2011 and 2017. As the SICREMI project was discontinued, the IDB and OECD recently started to work together to monitor the number of permits granted in fifteen countries of the region by category and nationality from 2015 to 2019. A first report was published in 2021.

The OECD Development Centre is also currently developing a baseline of social protection coverage amongst forcibly displaced persons, with colleagues from DCD as well a research paper with a general focus on how Latin American and Caribbean countries have addressed the challenge of hosting forcibly displaced persons. A new report Indicators of Immigrant Integration in Latin America and the Caribbean will provide a first-time comparative assessment of the integration of immigrants and their children in the region. The fifth edition of International Migration in the Americas in 2021 contributes to the debate on migration patterns for the countries of the region and for the major non-LAC receiving countries of Latin American emigrants. The OECD has produced a research paper and a baseline on social protection coverage of forcibly displaced persons in 12 LMICs, as a contribution and a pledge towards the Global Compact on Refugees. Reports are also being prepared for publication on migration and development, including on transit migration, migrant youth integration and attracting talent over the course of 2022.

The OECD, IDB and UNDP are currently preparing a database of indicators that measure the degree of socioeconomic integration of migrants in the LAC countries. This database, and a report based on it, will be published in early 2022. The OECD Development Centre has published a series of reports on How Immigrants Contribute to Developing Countries’ Economies in Argentina, Costa Rica and the Dominican Republic and is also working on the Dashboard of Indicators for Policy Coherence for Migration and Development, in collaboration with the UNDP and World Bank/KNOMAD. ENHANCING SOCIAL INCLUSION . 51

Improving healthcare quality and coverage

The COVID-19 pandemic has added a significant burden to the already overstretched health systems in Latin America and the Caribbean, highlighting the need for the region to move towards a more resilient and inclusive public health system. OECD work on LAC health systems has systematically sought to help migrate the impact of COVID-19 in the region, and deepen collaboration in the region across all health topics. The OECD Health System Review of Brazil and The OECD Review of Primary Health Care in Brazil were launched in

December 2021 and will help strengthen the co-operation on health between the OECD and Brazil, a key partner of the organisation. Both publications provide a strategic assessment of primary health care in Brazil, including comparisons with OECD member countries. A report on Policy Actions for affordable and accessible pharmaceuticals in Chile was published in March 2021. The report analyses the key challenges for marketing authorisation of pharmaceutical products in Chile and assessed the performance of the Chilean regulatory agency in comparison with other agencies.

Health spending in Latin America & the Caribbean Total health spending per capita, public and private (USD PPP, 2017 or latest year) 3 000

141

386

373

GUY

468

NIC

HND

473

470

BLZ

480

BOL

GTM

532

522

VCT

500

JAM

582

SLV

661

636

LCA

DMA

714

680

PER

SUR

GRD

954

944

ECU

864

960

COL

1 026

978

LAC-33

1 000

DOM

1 071

ATG

1 280

1 138

1 317

1 285

CRI

1 500

BRB

BHS

1 442

1 786

1 746

PAN

2 000

1 907

2 182

CHL

2 102

2 206

OECD average: 3 994

TTO

2 500

Voluntary/Out-of-pocket

2 484

Government/Compulsory

Source: WHO Global Health Expenditure Database 2020; OECD Health Statistics 2019 for Brazil, Chile, Colombia, Costa Rica and Mexico. 52 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

HTI

VEN

PGY

BRA

MEX

KNA

ARG

URY

CUB

ENHANCING SOCIAL INCLUSION

The Health at a Glance Latin America and the Caribbean 2020, the first regional edition for LAC of the OECD flagship publication on health, was published in the first semester of 2020 in partnership with the World Bank. The report provided comparable metrics on access, quality and efficiency to underpin policy discussions on health system performance, a thematic chapter on wasteful spending and an editorial on the early impact of the COVID-19 crisis on the region. The project “Pandemics and the role of Primary Health Care in Latin America and the Caribbean” is planned throughout 2022 in partnership with the European Union and UN ECLAC. It, aims to identify the most relevant actions and policies that primary health care (PHC) in selected LAC countries have developed to control the COVID-19 pandemic. Two EU/LAC events on the experience of PHC during the COVID-19 pandemic and the alternatives to enhance the role of PHC will be organised, as well as a final report on the role that PHC can take across the LAC region in the preparedness and response to pandemics.

www.oecd.org/health Health at a Glance: Latin America and the Caribbean 2020

Health at a Glance: Latin America and the Caribbean 2020

Health at a Glance: Latin America and the Caribbean 2020 presents key indicators on health and health systems in 33 Latin America and the Caribbean countries. This first Health at a Glance publication to cover the Latin America and the Caribbean region was prepared jointly by OECD and the World Bank. Analysis is based on the latest comparable data across almost 100 indicators including equity, health status, determinants of health, health care resources and utilisation, health expenditure and financing, and quality of care. The editorial discusses the main challenges for the region brought by the COVID‑19 pandemic, such as managing the outbreak as well as mobilising adequate resources and using them efficiently to ensure an effective response to the epidemic. An initial chapter summarises the comparative performance of countries before the crisis, followed by a special chapter about addressing wasteful health spending that is either ineffective or does not lead to improvement in health outcomes so that to direct saved resources where they are urgently needed.

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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.

Health at a Glance: Latin America and the Caribbean 2020

Consult this publication on line at https://doi.org/10.1787/6089164f-en.

PRINT ISBN 978-92-64-69289-3

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ENHANCING SOCIAL INCLUSION . 53

STRENGTHENING GOVERNANCE AND INSTITUTIONS

54 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

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. Similarly the OECD works with countries in the region in an ambitious programme to support better understanding of what drives public trust in institutions acknowledging that this is essential for the proper functioning of democracies and, in turn, to improve public governance.

in 2023 and will include data from countries in the region, covering the areas of public finance and employment, key institutions (centres of government), budgeting practices, public procurement, governance of infrastructure, regulatory governance, human resources management, open government, digital government and open government data. Its policy chapter will focus on the governance challenges during the COVID-19 pandemic recovery phase, looking at how LAC countries can enhance their capacity to enter global value chains, and the effects of policy choices on citizens’ wellbeing.

The OECD-IDB Government at a Glance Latin America and Caribbean (LAC-GaG) publication series allows countries to benchmark against each other and against OECD countries, expanding countries’ knowledge base and that of the OECD, as well as spreading knowledge of OECD’s good governance practices in the region. The fourth edition will be launched

Collaboration with countries includes a forthcoming Centre of Government Review of Brazil and Public Governance Reviews (PGRs) of Haiti and Honduras looking into their public administration and governance practices, and a similar focus on El Salvador, as part of a Multi-dimensional Country Review.

STRENGTHENING GOVERNANCE AND INSTITUTIONS . 55

STRENGTHENING GOVERNANCE AND INSTITUTIONS

Improving public governance

In 2021 the OECD worked with Peru in an implementation programme to support public governance reforms, as well as with Colombia through a capacity building project focused on strengthening sub-national governments’ administrative capacity, and with the State of Nuevo León, Mexico, in strengthening their long-term planning system.

towards results. The work with Colombia and Peru has allowed sharing knowledge with senior civil servants on OECD practices in the areas of planning, co-ordination, monitoring and evaluation. The state of Nuevo León has updated is 2030 development plan and created a public dashboard following OECD recommendations.

The Trust in Government Survey will deliver pioneer evidence to allow countries to measure trust in public institutions. The survey will provide data and insights on several governance areas for countries to benchmark their achievements and allow crosscountry comparisons on issues such as citizens’ appraisal of corruption in service provision or administrative transactions; or citizens’ expectations on the effectiveness of public health plans.

Starting in November 2021, a new Trust in Government Survey will examine people’s trust in public institutions and the key drivers behind them, namely government’s responsiveness, reliability, integrity, openness and fairness. The survey will cover 20 OECD member countries, including Colombia and Mexico. The forthcoming Brazil Trust Study, will provide the first in-depth analysis of public trust in the region.

OECD country engagement has supported LAC governments in the adoption of practices and tools aimed at the development of integrated and inclusive public governance systems oriented

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 2020

This third edition of Government at a Glance Latin America and the Caribbean provides the latest available evidence on public administrations and their performance in the LAC region and compares it to OECD countries. This publication includes indicators on public finances and economics, public employment, centres of government, regulatory governance, open government data, public sector integrity, public procurement and for the first time core government results (e.g. trust, inequality reduction). Governance indicators are especially useful for monitoring and benchmarking governments’ progress in their public sector reforms. Each indicator in the publication is presented in a user‑friendly format, consisting of graphs and/or charts illustrating variations across countries and over time, brief descriptive analyses highlighting the major findings of the data, and a methodological section on the definition of the indicator and any limitations in data comparability.

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 978-92-64-46823-8

56 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

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Government at a Glance Latin America and the Caribbean 2020

Consult this publication on line at https://doi.org/10.1787/13130fbb-en.

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Promoting inclusive regional and urban development LAC 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 inclusive and sustainable urbanisation for national and global development goals. PROMOTING INCLUSIVE URBAN DEVELOPMENT IN LAC Regional assets, internationalisation, and competencies across levels of government are key dimensions for the regional development in Latin America and the Caribbean. Analysing them provides a better understanding of the position of regions in globalisation to encourage regional development to be more resilient, more sustainable and more inclusive after COVID-19. The current project of the OECD on “Regional Development in the New Global Environment” helps policy-makers better understand the international characteristics of selected regions in Argentina, Chile and Colombia; identifying existing and novel drivers of regional attractiveness, and territorial needs and assets, as factors to support recovery from the COVID-19 pandemic and thrive in the new global environment. It also builds on the premise that there is no “one-size-fits-all” response to the challenges. This project brings together the OECD and ECLAC and is part of the European Union Regional Facility for Development in Transition for LAC. 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 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. National-level urban policy reviews were also undertaken in Chile (2013), Mexico (2015), and Colombia (2022, forthcoming), and metropolitan-level reviews were conducted in Antofagasta (2013), Puebla-Tlaxcala (2013) and Valle de México (2015). The Province of Córdoba (Argentina) and the State of Paraná (Brazil) are 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. The OECD continues to support these regions to implement the OECD tailored recommendations and action plans. STRENGTHENING GOVERNANCE AND INSTITUTIONS . 57

Promoting inclusive regional and urban development

OECD Urban Policy Reviews provided a comprehensive assessment of how each country’s system of cities is performing, and offered recommendation to improve the success of a range of relevant policies by applying an urban lens to them. Engagement of LAC countries and cities in 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. The region is also strongly committed to the achievement of the New Urban Agenda (NUA) by all levels of government, as is illustrated by MINURVI’s development of a Regional Action Plan for the Implementation of the NUA in LAC 2016-2036. Through the National Urban Policy Programme (NUPP) – 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 co-operation with MINURVI, will assist with the development and review of LAC countries’ NUPs, as key instruments for the implementation of global urban-related agendas.

REGIONAL DEVELOPMENT AND MULTI-LEVEL GOVERNANCE In 2017-18, OECD Territorial Reviews at subnational level were undertaken in Morelos and Hidalgo, Mexico. Furthermore, the first meeting of OECD Mining Regions and Cities was held in Antofagasta, Chile in 2017. The OECD is also actively engaging with LAC countries to support multi-level governance and decentralisation reforms through in-depth studies, notably Making the Most of Public Investment in Colombia (2017), Making Decentralisation Work in Chile (2017) and Asymmetric decentralisation: Policy implications in Colombia (2019). The OECD also organised a number of events such as the 1st seminar on Productivity and 58 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Territories in Chile (2017) and the seminar on Asymmetric Decentralisation in Colombia (2018). In 2018, Brazil officially adhered to the OECD Recommendation on Effective Public Investment across Levels of Government. The OECD Territorial Reviews of Morelos and Hidalgo provide an in-depth assessment of the states’ performance visa-vis international trends. The Review also identifies the strengths, challenges and policy priorities for inclusive regional development. Both Reviews also engaged international peerreviewers to share knowledge from other OECD countries. The Monitoring Review of Morelos supports the state in taking the OECD recommendations forward with an implementation agenda. OECD work on multi-level governance in Peru, Colombia and Chile offered concrete tools and actionable recommendations to improve co-operation across levels of government and strengthen subnational governance. 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-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. The OECD is also committed to strengthen the partnership with LAC countries to further support the implementation of multilevel governance and decentralisation reforms, in particular by strengthening subnational capacities for more inclusive regional development

www.oecd.org/gov

Against the socio-economic consequences of the COVID-19 crisis in Latin America, fiscal policy is and will be at the core of the response. In large part, it will determine how inclusive and strong the recovery will be. To that effect, fiscal policy must help drive a productive transformation generating formal employment, fully leveraging digital transformation and prioritising the environment. 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 Centre of Tax Administrations (CIAT), ECLAC, the IDB, the World Bank Group and the International Monetary Fund. The 10th LAC Fiscal Policy Forum took place in virtual format in November 2021, included discussions on the impact of COVID-19 on public finances, tax policy for a low-carbon transition, the tax challenges arising from the digital economy, and launched the Spanish version of the VAT Digital toolkit.

Total tax revenue as % of GDP in LAC countries, 2019 CUB

42.0

OECD avg.

33.8

BRB

33.1

BRA

33.1

BLZ

32.4

URY

29.0

ARG

28.6 28.6

JAM 25.9

NIC

24.7

BOL TTO

23.7

CRI

23.6 23.2

GUY LAC avg.

22.9 21.9

HND

21.1

LCA SLV

20.8

CHL

20.7

ECU

20.1 19.7

COL

18.7

BHS

18.2

ATG PER

16.6

MEX

16.5

PAN

14.1

PGY

13.9

DOM

13.5

GTM % 0

Caribbean South America Central America and Mexico

13.1

Source: OECD et al (2021), Revenue Statistics in Latin America and the Caribbean, OECD Publishing, Paris STRENGTHENING GOVERNANCE AND INSTITUTIONS . 59

STRENGTHENING GOVERNANCE AND INSTITUTIONS

Improving revenue collection and fiscal management

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. The publication, provides detailed, comparable, reliable and timely tax revenue data spanning nearly three decades for 27 countries in the region. Special features provide policy-relevant analyses of these data on issues of particular interest to the region, e.g. resource revenues and fiscal policy responses to the COVID-19 crisis. The 2021 edition examines changes in both the level and the composition of taxation plus the attribution of tax collection by sub-level of government between 1990 and 2020. 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.

oe.cd/revstatslac

2022

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

1990-2020

Estadísticas tributarias en América Latina y el Caribe

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1990-2020

Revenue Statistics in Latin America and the Caribbean 2022

21.9%

The tax-to-GDP ratio in Latin America and the Caribbean (LAC) was...

In 2020, tax-to-GDP ratios fell in 20 of the 26 LAC countries covered by the report and ranged... COVID-19 caused a sharp decline in tax revenues between 2019 and 2020 in the LAC region.

The pandemic affected revenues from non-renewable natural resources in the region, particularly hydrocarbons.

in 2020 a decrease of 0.8 percentage points from 2019

from

37.5% to 12.4% CUB

GTM

Tax revenues fell by

8.0%

in nominal terms on average

3.1%

2.1%

2019 2020 % of GDP, for a sample of major producers

1990-2020

2022

Source: OECD et al. (2022), Revenue Statistics in Latin America and the Caribbean 2022, OECD Publishing, Paris Source: OECD et al. (2022), Revenue Statistics in Latin America and the Caribbean 2022, OECD Publishing, Paris

60 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Enhancing tax transparency and compliance through international co-operation is key to tackling tax evasion and profit shifting, which is essential to strengthening the revenue raising capacity of LAC countries and restoring taxpayers’ trust in government and the fairness of the tax system. The OECD has been supporting LAC countries in their efforts to develop capacities 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 (Global Forum) and the 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 transparency and exchange of information. As at September 2021, 36 of the Global Forum’s 163 members are LAC economies, 28 of which started exchanging financial account information on an automatic basis pursuant to the (AEOI) standard developed by the OECD. 24 jurisdictions reviewed against the standard of exchange of information on request (EOIR) have been rated Compliant or Largely Compliant, except for three jurisdictions which are noncompliant. 33 LAC jurisdictions participate in the multilateral Convention on Mutual Administrative Assistance in Tax Matters, which enables them to exchange information with the 144 participating jurisdictions. In 2021, 16 LAC countries benefited from the Global Forum’s technical assistance programmes, delivered jointly with the regional partners, aimed at helping them implement the transparency standards. A key achievement in the region has been the Punta del Este Declaration in 2018 as a partnership between the Global Forum, its Latin American members and its regional partners. This initiative strengthens the regional consensus on a “whole of government” approach to tax evasion and corruption in the region. The objective of the Declaration is to maximise the use

of EOI through regional co-operation and capacity building. The Declaration has been signed by 13 member countries. The Tax Transparency in Latin America report is a key output of the Declaration and the first edition was launched in July 2021. The OECD/G20 BEPS Project has produced a 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, which allows members to engage in the global efforts to tackle BEPS on an equal footing. The current focus is on finalising and implementing the two pillar solution to the tax challenges of the digitalisation of the economy. Events in the LAC region on this issue will further facilitate the engagement of LAC countries in this project 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. During the 3rd meeting of the Punta del Este Declaration in 2020, member countries approved the work plan of the Declaration for the next three years. Capacity building for EOI units and tax audit teams is at the core of the plan, so tax administrations are able to take full advantage of EOI.

www.oecd.org/tax/beps www.oecd.org/tax/transparency www.oecd.org/tax/crime STRENGTHENING GOVERNANCE AND INSTITUTIONS . 61

STRENGTHENING GOVERNANCE AND INSTITUTIONS

Enhancing tax transparency and compliance

Efficient public procurement and budgeting

governance responses across LAC countries. It identifies good practices in health financing and governance frameworks for ensuring the resilience of LAC health systems when confronted with a major crisis such as COVID-19.

The COVID-19 pandemic has required taking fast actions to re-prioritise spending towards the double objective of attending the health crisis and mitigating the negative effects by supporting economic activity and the most vulnerable citizens. Sound and effective budgetary governance has been essential to address this challenge.

In 2020, all Latin American and Caribbean countries studied allocated additional public resources to the health sector to respond to the COVID-19 pandemic, and most LAC countries studied adapted their budget and procurement processes to allow for rapid responses to the pandemic.

The OECD has built on its 20-year relatioship with budget offices in the LAC region to provide support to countries. through the OECD Latin American and the Caribbean Senior Budget Officials Network (LAC-SBO) as well as the LAC branch of the OECD Network on Fiscal Sustainability of Health Expenditures.

Thanks to these efforts, the study shows that accessing financial resources was not the obstacle for implementing the early response to the pandemic: accessing medical supplies and equipment in the time and quantities needed and the availability of the specialised health workforce were the main difficulties.

The study Health Financing and Governance Responses to COVID-19 in Latin America and the Caribbean Countries analyses actions taken by Health and Finance ministries in 13 LAC countries. It highlights the main health financing and

Budgetary challenges encountered in 2020 for implementing the health responses to COVID-19 8 7

5 4

4 3

Reprioritised funding from within an existing health budget

Loans from international organisations / countries

Grants from international organisations / donors

Reprioritised funding from other sectors across government

Contingency funds for unanticipated events

Source: OECD survey of health 62 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN 8 7

7 6

Other

Transfers between fiscal years

Salary discounts Does not apply, for certain public there was officials and / or no funding discounts from public increase pensions payouts

Reprioritised funding from within an existing health budget

Loans from international organisations / countries

Grants from international organisations / donors

Reprioritised funding from other sectors across government

Contingency funds for unanticipated events

Other

Transfers between fiscal years

Salary discounts Does not apply, for certain public there was officials and / or no funding discounts from public increase pensions payouts

Resource mobilisation mechanisms of additional funds for the budgetary response to COVID-19 on health in 2020 8 7

7 6 5

Having access to medical supplies, PPE, and equipment for testing or treatment on time and in the quantities needed

Estimating health resource needs for the COVID-19 response

Increasing the capacity of treatment and testing facilities

Implementing a coordinated response to COVID-19 across government

Availability of health workforce

Maintaining health care services for non-COVID-19 patients

Finding the financial resources to fund/ finance the COVID-19 response

Source: OECD survey of health

Most LAC countries studied developed special monitoring and reporting processes for tracking COVID-19 health expenditures, including making public reports available on the web. As LAC countries slowly recover from the pandemic, the OECD will keep on supporting them to continue developing a more robust budgetary framework and achieve an inclusive and sustainable recovery, by addressing complex issues such as the need to include gender and green perspectives. It will also support countries in restoring sustainable public finances while protecting key areas such as health care or social protection, for example, by using instruments such as spending reviews.

www.oecd.org/gov/budgeting www.oecd.org/gov/ethics www.oecd.gov/daf/anti-bribery STRENGTHENING GOVERNANCE AND INSTITUTIONS . 63

STRENGTHENING GOVERNANCE AND INSTITUTIONS

Enhancing integrity and combatting corruption

Corruption and violations of integrity standards continue to plague countries all over the world, undermining trust in institutions and inclusive growth. In recent years, Latin America and the Caribbean countries have prioritised the fight against corruption and the promotion of a culture of public integrity for good governance. Latin American and Caribbean (LAC) countries prioritised in 2017-2019 the fight against corruption and the promotion of a culture of public integrity for good governance. To support governments in this effort, the High Level Meeting of the OECD LAC Regional Programme (Lima Peru, 2018) proposed an Action Plan on Integrity and Anti-corruption for Good Governance in LAC. The Action Plan consists of a comprehensive agenda of 103 policy recommendations 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. 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, Ciudad de Mexico, Nuevo León, Coahuila). Collaborating with development co-operation 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.

The OECD-IDB LAC Public Integrity Network shapes the policy debate and enables the exchange of good practices and lessons learned from policy implementation at national, regional and international levels. To reflect the broad and inclusive nature of a public integrity system, the network includes not only bodies dedicated exclusively to integrity policies, but also actors responsible for government transparency, public administration as well as external and internal control, for example. As a result of the Network, the OECD published in 2019 the first edition of “Public Integrity in Latin America and the Caribbean 2018-2019” based on quantitative and qualitative evidence, studies and country projects of the OECD in the region, as well as responses to the OECD Survey on Public Integrity in Latin America 2018-2019. After a fully virtual meeting in 2020, the Network held its fourth meeting in November 2021. The OECD LAC Regional Programme will continue through its regional networks on integrity and anti-corruption to serve as a platform to discuss how to advance this Action Plan and exchange good practices in each of the ten areas that it covers. “The enhanced participation of Latin America in OECD, with six participating members including the United States and Canada, Chile, Colombia, Mexico and recently Costa Rica, as well as the negotiations with Brazil and Peru, strengthens the implementation of the mandates of the Summit of the Americas and broadens potential co-operation with countries in the region on the fight against corruption. The OECD Action Plan on integrity and anti-corruption as well as a Policy Note on relevant reforms and recommendations with respect to the challenges related to promoting a culture of integrity in civil service as outlined in the Lima Commitment are examples of the outcomes of the collaboration efforts.” Luis Almagro, Secretary General of the Organization of American States

64 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Over the past ten years, all Latin America and Caribbean countries have been implementing open government reforms. Countries from the region have started involving all levels of government and all branches of the State in their open government reform agendas, leading the global move towards an Open State. The OECD has published regional as well as country specific reports on open government, including Costa Rica (2016), Argentina (2019) and the Argentinian Province of Santa Fe (2020). In addition, the OECD supports countries in the implementation of open government initiatives and strategies, such as the Handbook for Public Servants in Peru (2021) and a Guide for Subnational Open Government Strategies in Colombia (2021). The Secretariat will publish the Open Government Review of Brazil and a chapter on open government as part of the Public Governance Review of Honduras in 2022.

The OECD will continue working closely with LAC countries to ensure the COVID-19 recovery is guided by the open government principles. In 2022, the OECD will publish two country reviews (Brazil and Honduras) and the results of the 2020 OECD Survey on Open Government, which will include comparative data from 13 countries in LAC. Through the OECD Network on Open and Innovative Government in LAC, the Secretariat will continue its collaboration with member and non-member countries in the region to strengthen their open government agendas, establish innovative ways to include citizens in decision-making and ensure the protection of civic space.

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

The OECD Network on Open and Innovative Government in LAC gathers more than 100 representatives from government and civil society and last met virtually in November 2020. The Network met again virtually in February 2022 welcoming over 400 participants. The open government agenda in the LAC region has been maturing in the past decade. The OECD has been a key actor in the regional open government agenda, building the narrative around the concept of open state and providing assistance and recommendations, which have been implemented and show today a tangible impact. For example, Argentina will publish its first Federal Open Government Strategy, Costa Rica is moving forward with the creation of an Open State Forum and Colombia is drafting an Open State Policy.

Guía

DE LA OCDE SOBRE GOBIERNO ABIERTO

PARA FUNCIONARIOS PÚBLICOS PERUANOS

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STRENGTHENING GOVERNANCE AND INSTITUTIONS . 65

STRENGTHENING GOVERNANCE AND INSTITUTIONS

Fostering open government

Ensuring regulatory efficiency

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.

flow of new regulations to ensure their quality. To help with these challenges, one key step is to engage with stakeholders to collect information via public consultation, and involve them in the improvement process. “We need to address the economic and social effects of the pandemic. This is where the OECD’s LAC Regional Programme can provide the necessary technical expertise, statistical data and tailor-made recommendations for a sustainable recovery. I am glad to announce that Germany is supporting a project looking at the shortfalls in primary health care in Latin America and the Caribbean during the pandemic to prepare the region for future health emergencies. It is thanks to initiatives like this that the OECD has built a reputation of providing the gold standard in economic policy advice.”

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 Ensuring regulatory efficiency working with the OECD by having access to lessons learned and relevant practices from OECD member countries in better regulation. For instance, the OECD has collected the experience of member countries in one-stop shops, and has produced the OECD Best Practice Principles for Regulatory Policy: One‑Stop Shops for Citizens and Business. These principles served as a guide to set up a Digital Window for Investment in Yucatan, Mexico, which helped reduced 51% of data requirements in licensing and permitting, and 85% in official response times, on average. One‑Stop Shops for Citizens and Business

One‑stop shops have emerged as a way for governments to provide better services and improve regulatory delivery to citizens and business. The OECD Best Practice Principles for Regulatory Policy: One‑Stop Shops for Citizens and Business offer a set of practical considerations for designing, operating, and reviewing one‑stop shops. The Principles are based on a series of case studies and cover a wide range of tools and institutional arrangements to help governments improve their one‑stop shops. This report is part of a series on “best practice principles” produced under the auspices of the OECD Regulatory Policy Committee. As with other reports in the series, it extends and elaborates on principles highlighted in the 2012 Recommendation of the Council on Regulatory Policy and Governance.

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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66 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

One‑Stop Shops for Citizens and Business

Consult this publication on line at https://doi.org/10.1787/b0b0924e-en.

Countries in the Latin American region have the twin challenge of reducing and improving the stock of existing regulations, including the simplification of licenses and permits, and of 9HSTCQE*dfhajj+ ensuring that proper mechanism are in place to control the

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

OECD Best Practice Principles for Regulatory Policy

Some impact example of this work, include 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; supporting Brazil and Mexico to review sector specific regulations to enhance the benefits for society from protection to consumers or the environment.

Miguel Berger, State Secretary of the Federal Foreign Office of Germany

OECD Best Practice Principles for Regulatory Policy

One‑Stop Shops for Citizens and Business

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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 report on Public Enforcement of Corporate Governance-Related Rules in Latin America (2020). The two reports focused on Brazil published in 2020 have already had a tangible impact in the country.

Public Enforcement of Corporate Governance-Related Rules in Latin America A comparison of Argentina, Brazil, Chile, Colombia, Mexico and Peru

and policy alternatives for Brazil A comparison of selected jurisdictions

As a result of the research conducted by the OECD in Private Enforcement of Shareholder Rights: A Comparison of Selected Jurisdictions and Policy Alternatives for Brazil, the national capital markets regulator enacted a regulation in June 2020 that effectively strengthens minority shareholder rights by reducing how many shares minority shareholders must have in order to file a derivative lawsuit (a lawsuit on behalf of the company against corporate officers or the controlling shareholder). Likewise, implementing one of the key recommendations in the OECD Review of the Corporate Governance of State-Owned Enterprises in Brazil, the Ministry of Economy launched in July 2021 an aggregate report of all 46 directly-controlled SOEs, providing greater transparency for society on their results. Looking forward, the OECD will continue to support implementation of the G20/OECD Principles of Corporate Governance through the Latin American Corporate Governance Roundtable, with an aim to promote capital market development and corporate sustainability in the region. The Latin American Network on Corporate Governance of SOEs will work in partnership with the CAF Latin American Development Bank to support implementation of the OECD Guidelines on Anti-Corruption and Integrity in SOEs and Guidelines on Corporate Governance of SOEs.

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

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STRENGTHENING GOVERNANCE AND INSTITUTIONS . 67

STRENGTHENING GOVERNANCE AND INSTITUTIONS

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

ENVIRONMENT AND SUSTAINABILITY

68 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Green growth is about fostering economic growth and 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 recover from the COVID-19 pandemic and 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, Mexico and the other OECD Members in adhering to the OECD Declaration on Green Growth, which encourages domestic policy reforms that promote environmentally and socially sustainable economic growth. More LAC countries are welcome to join this Declaration. Several LAC countries are included in the Green Growth Indicator Database and the new Green Recovery Database that tracks COVID-19 recovery measures with likely environmental implications, positive or negative, across 44 countries, out of which 5 are from LAC region.

“The OECD Latin America and the Caribbean Regional Programme represents a valuable tool for building a long-term vision of the region’s development and to coordinate Green Recovery, through a joint effort between governments, international organisations and other key actors in our countries.” Sergio Díaz-Granados, President of the Development Bank of Latin America-CAF

for a greener and more resilient future, how to increase the sustainability of the tourism industry and the implications of the pandemic for energy efficiency in the building sector. The 2022 GGSD Forum will be held under the overarching theme “The impact of COVID-19 on innovation for green growth.

www.oecd.org/greengrowth/ www.oecd.org/greengrowth/ggsd2021/

Building on the general framework developed in the 2011 OECD’s Green Growth Strategy, the OECD has mainstreamed green growth in its national and multilateral policy surveillance exercises to provide policy advice that is targeted to the needs of individual countries. These include the Economic Surveys, Environmental Performance Reviews, Innovation Reviews, and Investment Policy Reviews, as well as the Going for Growth annual report and the Green Cities Programme. Countries from the LAC region were invited to participate at the Green Growth and Sustainable Development (GGSD) Forum in November 2021 on the theme of “A green recovery: Rethinking the build environment and transport”. The Forum discussed how better design cities, as well as mobility of people and goods ENVIRONMENT AND SUSTAINABILITY . 69

ENVIRONMENT AND SUSTAINABILITY

Promoting green growth

Improving water governance

OECD Studies on Water conducted in LAC countries aim to lead to concrete reform outcomes and support the implementation of the Sustainable Development Goal on water and sanitation (SDG 6). For example, the Policy Dialogue underlying the 2021 report on Water Governance in Peru facilitated a consensus among water stakeholders on key issues related to overcoming governance gaps, strengthening the regulatory framework for the provision of sanitation services and providing economic instruments for an effective and efficient water resources management.

Since 2012, the OECD Water Governance Programme has been supporting better water governance in LAC countries, such as through the Water Governance in Latin America and the Caribbean report and 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 dialogues in Mexico, Brazil, Chile, Argentina and Peru. In addition, Mexico, Chile, Brazil, Colombia and Peru are members of the OECD Water Governance Initiative, which is an international multistakeholder network of members from the public, private and not-for-profit sectors gathering regularly to share good practices towards 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 OECD Studies on Water Indicator Framework and Water Governance in Peru the collection of evolving practices of water governance.

The OECD is committed to continue working with LAC countries to advance water governance in the region. Peru, Argentina, Brazil, Mexico and other LAC countries will be invited to take part in the OECD Water Governance Initiative meetings. A third OECD collaboration project with Brazil on capacity building was finalised in 2021.

Monitoring & evaluation

WAT E R GOVE R NANCE

Regulatory frameworks

Innovative governance

Clear roles & responsibilities

EFFECT

Appropriate scales within basin systems

Financing

NCY

70 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

Policy coherence

CIE

9HSTCQE*jffgjb+

Data & information

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Capacity

Water Governance in Peru

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OECD Studies on Water

illion cases as of March 2021, the pandemic health, the environment and the economy. The water and sanitation” by 2030, with 3 million vices and 8.2 million Peruvians (25.2%) lacking addition, between 2000 and 2020, floods nagement of solid waste and some economic severe public health issues, and social conflicts. hening water governance in Peru is key for long ysis of water governance in the country and oach to water; improve the use of economic sources and related ecosystem services; and inking water and sanitation in urban and rural

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.

E T & M ENGAGE

Trade-offs across users, rural & urban areas & generations

Integrity & transparency Stakeholder engagement

Latin American and Caribbean (LAC) 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 climate related 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, as well as through the support of naturebased solutions.

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 ocean is becoming the centre stage for a new range of economic activities, from off-shore wind energy, to growing

OECD Urban Studies

The Circular Economy in Cities and Regions SYNTHESIS REPORT Cities and regions play a fundamental role in the transition from a linear to a circular economy, as they are responsible for key policies in local public services such as transport, solid waste, water and energy that affect citizens’ well‑being, economic growth and environmental quality. This synthesis report builds on the findings from 51 cities and regions contributing to the OECD Survey on the Circular Economy in Cities and Regions and on lessons learnt from the OECD Policy Dialogues on the circular economy carried out in Groningen (Netherlands), Umeå (Sweden), Valladolid (Spain) and on‑going in Glasgow (United Kingdom), Granada (Spain), and Ireland. The report provides a compendium of circular economy good practices, obstacles and opportunities, analysed through the lens of its 3Ps analytical framework ( people, policies and places). It concludes with policy recommendations, a Checklist for Action and a Scoreboard to self‑assess the existence and level of implementation of enabling governance conditions to foster the transition towards the circular economy in cities and regions.

OECD Urban Studies

The Circular Economy in Cities and Regions SYNTHESIS REPORT

The Circular Economy in Cities and Regions

Tracking Economic Instruments and Finance for 9HSTCQE*gecjfj+ Biodiversity PRINT ISBN 978-92-64-64295-9 PDF ISBN 978-92-64-97612-2

SYNTHESIS REPORT

The Tracking Economic Instruments and Finance for Biodiversity released in September 2021, highlights the latest data and trends on biodiversity-relevant economic instruments (known as positive incentives under the Post-2020 Global Biodiversity Framework of the Convention on Biological Diversity) and the finance they mobilise or revenue they generate. It covers data from across more than 120 countries, including several countries in the LAC region. All LAC countries are invited to contribute data.

OECD Urban Studies

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) jointly host the Climate Change Expert Group (CCXG), which provides a forum for promoting dialogue and enhancing understanding on key issues in the international climate change negotiations, providing analytical insights to effective implementation of the Paris Agreement in the countries.

their long-term strategies toward the transition from a linear to a circular economy. The Circular Economy in Cities and Regions: Synthesis Report presents a compendium of circular economy good practices, obstacles and opportunities, based on a Survey and case studies across 51 cities and regions, including Medellín (Colombia), Peñalolén (Chile), Quillota (Chile) and Santiago (Chile). It concludes with a Checklist for Action and a Scoreboard to measure progress.

2021

SCAN TO READ THE REPORTS

The OECD Programme on the Circular Economy in Cities and Regions supports various levels of government in defining ENVIRONMENT AND SUSTAINABILITY . 71

ENVIRONMENT AND SUSTAINABILITY

Taking action on climate change and moving towards a cleaner and healthier environment

aquaculture, to marine biotechnologies. As part of the Sustainable Oceans for All Initiative, the OECD conducted case studies in two small island developing states in the LAC region, Grenada and Antigua and Barbuda, to inform the main Sustainable Ocean for All report and to inform a number of policy dialogues in the region.The case studies were integrated in a comprehensive report on Sustainable Oceans for All. (also available in Spanish) published in September 2020. This is the first OECD report to provide a comprehensive and multi-disciplinary review of the ocean economy in developing countries, bringing together expertise from across the OECD including development co-operation and finance, the environment, and science, technology and innovation. Findings from the report were presented at policy discussions and events in the LAC region. The clean energy transition offers significant potential to achieve both climate and development goals. The OECD launched in early 2019, the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) programme supports Colombia in

72 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

strengthening its policy framework to facilitate and scale up finance and investment in renewable electricity and energy efficiency. Working closely with the Ministry of Mines and Energy, CEFIM is preparing a forthcoming report on Enabling conditions for renewable energy finance: insights for bioenergy. The OECD carried out a case study in Mexico on Scaling up the use of nature-based solutions to address water-related climate risks. Building on a policy framework developed by the OECD, the case study presents insights into Mexico’s enabling environment for nature-based solutions, as well as opportunities and challenges in facilitating their update with regard to policy, governance and regulatory frameworks, as well as technical capacity and funding for nature-based solutions. The OECD has also joined forces with UN Environment and the World Bank under the Financing Climate Futures: Rethinking Infrastructure Initiative. New work from the OECD shares insights on the potential of NDBs in shaping a climatesafe future, drawing specific attention of the international

The work of the OECD International Transport Forum (ITF) in Latin America focuses on enhancing human well-being and environmental sustainability through better mobility options. The Decarbonising Transport in Latin American Cities project

developed tools for authorities from Bogota, Buenos Aires and Mexico City to help them measure future impacts of transport policies. The project highlighted that these three cities could decrease their transport CO2 emissions by at least 50% between 2020 and 2030 if they promote more sustainable mobility. The project was carried alongside the Inter-American Development Bank (IDB). The ITF work has put the OECD at the forefront of the transport decarbonisation debate in Latin America. For example, the ITF’s Decarbonising Transport in Emerging Economies project (DTEE) is a platform for high-level policy exchange. In 2020, it organised a three-week online conference on decarbonising transport in LAC in the face of the pandemic. In 2021, the ITF Virtual Summit treated challenges for financing transport decarbonisation. Similarly, the project supports the development of the new National Action Plan for Transport and Climate Change of Argentina. Outreach to Latin America will continue to be a strategic priority for the ITF. Colombia joined ITF in 2021 and Brazil became an ITF observer in 2020. Constructive dialogue exists with Costa Rica. The ITF will publish at least three reports and organise four workshops on transport decarbonisation in 202123 that will focus on the LAC region. “The LACRP is a programme that has been of great value to our region and very important to the World Bank. This approach that we have achieved with the OECD and Latin America has been of high impact and I am sure that it will continue to bear fruit in the future.” Carlos Felipe Jaramillo, World Bank Vice President for LAC

www.oecd.org/climate-change/ www.itf-oecd.org ENVIRONMENT AND SUSTAINABILITY . 73

ENVIRONMENT AND SUSTAINABILITY

community to the Brazilian Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and its progress in moving from a traditional role as financer of infrastructure to becoming a mobiliser of additional resources for infrastructure promotion The study on BNDES is an important piece in establishing the OECD as a relevant player in generating independent policy analysis on the development priorities of emerging countries, and how members of the Development Assistance Committee can support action on these priorities in a catalytic manner. A follow-on study is planned that will feed into and add value to the OECD Blended Finance Principles, and the sectoral and regional deep-dives hereunder. The work corresponds to a mandate the OECD, the UN Environment Programme and the World Bank Group received under the 2017 G20 Hamburg Energy and Climate Action Plan for Growth.

Strengthening chemical and biological safety

The chemical 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 countries in Latin America and the Caribbean, to avoid duplicated testing and share the burden of chemical assessments though the internationally accepted OECD Guidelines. In addition to OECD Members, Argentina and Brazil are adherents to the OECD’s Mutual Acceptance of Data (MAD) in the Assessment of Chemicals agreement. Argentina is a Participant in the Working Party on the Harmonisation of Regulatory Oversight in Biotechnology. Brazil, Chile and Mexico also take part in the Pesticides and Chemical Accidents Programmes and in the work related to genetically modified crops, where several LAC countries have also taken part. Peru has participated in the Working Party on Pollutant Release and Transfer Register (PRTR) to exchange experience on implementing a PRTR, which is a publicly accessible database of pollutant releases to the environment. This facilitates development and implementation of harmonised PRTRs. The OECD’s MAD programme is a multilateral agreement that allows the results of non-clinical safety tests on chemicals and chemical products to be shared across adhering countries. Adherence to MAD saves governments and chemical producers in participating countries EUR 309 million annually. Under MAD, testing must be carried out according to the OECD Test Guidelines and OECD Principles of Good Laboratory Practice. The OECD has held webinars to enhance ability of laboratories in LAC countries to test the safety of nanomaterials. Brazil and Argentina, as the second and third largest global producers of genetically modified crops in 2019, have also long 74 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

participated in the OECD’s activities related to environmental biosafety and the safety of novel foods and feeds. This engagement with the OECD helps the participating governments in the LAC region to assess and reduce the health and environment related risks.

www.oecd.org/chemicalsafety/ www.oecd.org/chemicalsafety/pesticides-biocides/ www.oecd.org/chemicalsafety/pollutant-release-transferregister/

The International Energy Agency (IEA) fosters bilateral and regional collaboration on a variety of issues related to clean and secure 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. However, energy efficiency potentials continue to remain largely untapped while hydrogen is starting to generate significant interest in the region. IEA co-operation helps countries improve data collection, analysis and planning, identifying challenges and developing new policy solutions.

Variable renewables as a share of total electricity generation

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 new energy market designs, promoting 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 supporting governments in ensuring reliable energy beyond oil, focusing on power system modernisation and the challenges around social aspects of clean energy transitions. The IEA will continue to work closely with Latin American countries, as well as regional partners, including the Latin American Energy Organisation (OLADE) and the UN Economic Commission for Latin America and the Caribbean (ECLAC), and its member countries, to build on the region’s relatively clean energy mix and accelerate clean energy transitions.

www.iea.org/cetp0

Uruguay Costa Rica

2017

Chile

2022

Mexico OECD average (2022) 16.4%

Brazil Argentina Colombia 0%

10%

15%

20%

25%

30%

35%

40%

VRE Share (%) Source: IEA Renewables 2018 (https://www.iea.org/renewables2018/) ENVIRONMENT AND SUSTAINABILITY . 75

ENVIRONMENT AND SUSTAINABILITY

Ensuring reliable and clean energy

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ANNEXES

Annexes PARTNERSHIPS IN OECD BODIES 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. Participation in OECD Bodies is for an open-ended period, except in discussions marked as confidential.

Adherence to OECD instruments 300

250

200

150

100

0 Pre-1996 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Instruments

Participation in OECD bodies

120

100

0 Pre-1996 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

ANNEXES . 77

Annexes

Mainland LAC countries – partnership trends by Partner (Associate/Members & Participants) 40

Argentina Belize Honduras

Brazil Panama

Ecuador Paraguay

Guatemala El Salvador Peru Uruguay

Number of partnerships

0 Decision year 1994 1995 1996 1997 1998 2000 2001 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Caribbean countries – partnership trends by Partner (Associate/Members & Participants) 4.5 4

Antigua & Barbuda Bahamas Saint Kitts & Nevis

Barbados Saint Lucia

Dominican Republic Dominica Grenada Saint Vincent & the Grenadines Trinidad & Tobago

Jamaica

Number of partnerships

3.5 3 2.5 2 1.5 1 0.5 0 Decision year 1994 1995 1996 1997 1998 2000 2001 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

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ANNEXES

Annexes

LAC COUNTRY PARTICIPATION IN OECD LAC NETWORKS 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/.

YEAR ESTABLISHED

NETWORKS

COMMITTEES

2000

OECD-IDB Senior Budget Officials Network

Public Governance (WPSBO)

2000

Latin American Corporate Governance Roundtable

Corporate Governance

2003

OECD-IDB LAC Competition Forum (LACCF)

Competition

2010

LAC Fiscal Initiative

Fiscal Affairs

2010

LAC Investment Initiative

Investment

2011

LAC Network on Corporate Governance of State-Owned Enterprises

Corporate Governance (WP SOPPs)

2015

OECD Network on Open and Innovative Government in LAC

Public Governance

2015

OECD Network on Regulatory Improvement

Regulatory Policy

2016

OECD LAC Health Systems Network

Health

2016

LAC Law Enforcement Network (LAC LEN)

Working Group on Bribery

2017

OECD-IDB LAC Public Integrity Network

Public Governance

2017

LAC Regional Network of the OECD International Network on Financial Education (INFE)

Financial Markets (INFE)

2019

OECD-EU Responsible Business Conduct in LAC (RBC-LAC)

Investment

OECD NETWORKS WITH PARTICIPATION OF LAC COUNTRIES

2014

Latin America Network of Public Policies for Regional Development

Regional Development

2018

Latin America Regional Policy Dialogue on Women’s Economic Empowerment

Development Centre

2018

Food Chain Analysis Network

Trade and Agriculture

ANNEXES . 79

Annexes

STAKEHOLDER ENGAGEMENT 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 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. 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 80 . ACTIVE WITH LATIN AMERICA AND THE CARIBBEAN

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 out public affairs and communication activities with the Spanish-speaking community. In addition to this, a new dedicated website (www.oecd.org/latin-america) 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.

News and information about OECD work and events involving Latin America and the Caribbean are available at www.oecd.org/latin-america You can also subscribe to the OECD Latin America and the Caribbean Newsletter – to subscribe to the Newsletter, please click here.

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