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

Social challenges and lessons for an inclusive recovery

The coronavirus (COVID-19) pandemic hit an extremely vulnerable social structure in Latin America and the Caribbean (LAC), resulting in a significant increase in poverty and inequalities and highlighting the urgency to overcome the social vulnerability trap. The crisis revealed that the current mechanisms for social protection in the region are insufficient due to widespread labour informality, which affects more than 50% of workers. In addition, the prevalence of gender gaps in the labour market and the over-representation of women in poorer households remain structural challenges. This chapter explores the need to move towards universal social protection systems, promote options for formalisation and reduce social coverage gaps, to protect those in the intersection of vulnerability factors, in particular the climate change-vulnerable population, women, migrants, youth and disadvantaged students. The chapter shows the linkage between climate change and inequality and how social protection systems can help promote a green recovery in the region while highlighting the need to improve the quality and inclusiveness of basic services, especially health care and education.

English Also available in: Spanish


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