Conclusion

LAC is facing a truly challenging moment. COVID-19 has killed many, and left scars in terms of increased poverty, lost human capital, indebted firms, and overextended government budgets. And we are not yet out of the woods. Vaccination campaigns will need to be pursued with vigor, and with luck, will defend against emerging variants of the disease.

Growth was lackluster before COVID-19—too low to make progress on the long-standing social issues facing the region—and it appears weaker during the recovery than would be predicted given the favorable tailwinds. The challenge, then, is laying the foundations for a more dynamic, sustainable, and inclusive growth in a context of very limited fiscal resources. This volume has sought to highlight areas where existing resources could be used more efficiently or reallocated to areas where they would contribute more to growth and social well-being. In many cases, the political economy confronting such changes may be complex to navigate, but it is precisely the imperative that the 2020s will be a more prosperous decade for LAC that dictates attempting them.