1887

Boosting Productivity and Inclusive Growth in Latin America

image of Boosting Productivity and Inclusive Growth in Latin America

Over the past two decades, most Latin American and Caribbean (LAC) countries have experienced robust economic growth and been able to make significant reductions in poverty and income inequality. However, growth in the region was not strong enough to ensure convergence towards levels of per capita income observed in advanced OECD economies. An important part of this underperformance can be explained by weak productivity growth. Should this weakness persist, it will be very difficult for LAC countries to achieve better lives for the majority of families. The present publication portrays the situation of LAC countries and discusses best-practice policies. Participation in global value chains is encouraged to enable knowledge spillovers and a process of learning by doing. More regional trade integration would help this process, as Latin America ranks very low and remains a sizeable outlier. The diffusion of knowledge and technology would be facilitated by making it easier to do business, notably allowing new entrants that are facing high barriers to operate and grow. Improved access to education is important to meet the demand for skills, and to boost innovation and research and development, which is particularly true in a context of fast technological change.

English

.

Costa Rica

Labour productivity growth has slowed in the past decade because of sluggish technical progress. Enhancing productivity requires a national strategy aiming at strengthening the institutions, boosting competition, promoting innovation and access to finance and improving transport infrastructure. Such reforms need to go together with making Costa Rica a more inclusive society by improving the quality of education and reducing gender inequalities.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error