Latin American Economic Outlook 2021

Working Together for a Better Recovery

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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.

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.

English Also available in: Spanish

Rethinking the social contract in Latin America and the Caribbean

Social discontent, as demonstrated by the wave of protests shaking Latin America and the Caribbean (LAC), mistrust of government and demands for greater democratic reforms are rising at a time in which the coronavirus (COVID-19) crisis is putting the region’s resilience to the test. They provide a stark reminder of the urgent need for LAC countries to update the social contract in order to tackle long-standing structural weaknesses, while also planning for a strong, inclusive and resilient recovery from COVID-19. In practice, renewing the social contract may involve striking various pacts in specific policy domains (e.g. a fiscal pact) and building broad support among various stakeholders (e.g. government, civil society, trade unions, private sector). Achieving fair, legitimate and stable pacts will require engaging in open and inclusive policy-making processes and implementing strong public integrity policies to avert the risk of policy capture by powerful elites. Paying attention to the political economy of reform will be crucial to reach stable and long-lasting agreements.

English Also available in: Spanish


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