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PRESENTATIONS BY THE PARTNER INSTITUTIONS OF THE JOINT SUMMIT WORKING GROUP – JSWG

SUMMIT IMPLEMENTATION REVIEW GROUP (SIRG) OEA/Ser.E Third Regular Meeting of 2008 GRIC/O.3/Inf.3/08 September 18-19, 2008 18 September 2008 Bridgetown, Barbados Original: English

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PRESENTATIONS BY THE PARTNER INSTITUTIONS OF THE JOINT SUMMIT WORKING GROUP – JSWG

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  1. SUMMIT IMPLEMENTATION REVIEW GROUP (SIRG) OEA/Ser.E Third Regular Meeting of 2008 GRIC/O.3/Inf.3/08 September 18-19, 2008 18 September 2008 Bridgetown, Barbados Original: English (Hilton Barbados Hotel) PRESENTATIONS BY THE PARTNER INSTITUTIONS OF THE JOINT SUMMIT WORKING GROUP – JSWG INTER-AMERICAN DEVELOPMENT BANK (Promoting Human Prosperity: Progress, Challenges and Future Priorities)

  2. Promoting Human Prosperity: Progress, Challenges and Future Priorities Ian Ho-A-Shu, Social Development Specialist (HQ) Social Protection and Health Division Inter-American Development Bank

  3. The Presentation • Poverty trends in LAC. Key challenges and priority areas. • Education and Health trends in LAC. Key challenges and priority areas • Labor market trends in LAC. Key challenges and priority areas. • Closing comments

  4. Poverty Rates (%) 45 40 35 2 US/day 30 25 20 1 US/day 15 10 5 0 1970 1980 1990 1998 Poverty rates and the number of poor people have declined dramatically worldwide Number of Poor People (millions) 1600 1400 1200 2 US/day 1000 800 600 400 1 US/day 200 0 1970 1980 1990 1998 Source: Sala-i-Martin, NBER Working Paper 8933

  5. Poverty Rates 2US/day 45 40 35 World 30 25 20 15 10 Latin America 5 0 1970 1980 1990 1998 Source: Sala-i-Martin, NBER Working Paper 8933 …but not so in Latin America

  6. Latin America: Trends in Poverty and Indigence /a (percentage of individuals) 60 Indigent Non-indigent 48.3 50 43.5 44 43.8 42 40.5 39.8 38.5 40 30 22.5 19.4 18.6 19 18.5 16.9 20 15.4 14.7 10 0 1980 1990 1997 1999 2002 2004 2005 2006b/ a/ Estimates for 18 countries of the region plus Haiti. b/ Projections. Source: ECLAC (2006). Social Panorama of Latin America 2006. Briefing paper. Current poverty rates are not much lower than in 1980

  7. This partly reflects low growth rates

  8. …and income concentration Gini Coefficient, 2000 or latest year available Pakistan 30.6 Bangladesh 31.8 Poland 34.5 United States 40.8 China 44.7 Venezuela 44.1 Mexico 49.5 Argentina 52.8 Peru 54.6 Chile 57.6 Brazil 58.0 Colombia 58.6 0 10 20 30 40 50 60 70 Source: World Bank (2006).

  9. Human Development Index (0 – 1 Scale) 1.0 0.9 0.8 0.76 0.74 0.71 0.7 0.67 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Developed East Asia Middle East Eastern Europe LAC Rest of Asia Africa 1975 1985 1995 2004 aMedians Note:Latin America and the Caribbean corresponds to the 26 countries members of the IDB . Source: UNDP (2006). Humand Development Report. Non-income aspects of development have improved slowly

  10. …but FPI in LAC may further impact poverty and human development

  11. Strategic Priorities in Poverty reduction • Increase equity and coverage in Social Protection Systems (SPS) • Increase effectiveness of SPS: reduce program fragmentation and duplications, reduce administrative costs, increase accountability. • Continue efforts to mainstream monitoring, evaluation and in general the measurement of the effectiveness, impact and sustainability of social policies and programs. • Promote demand of health, nutrition and education services through information and incentives. (Conditional Cash Transfer programs) • In short: Strengthen Social Safety Nets, and in particular, Conditional Cash Transfer Programs in the Region.

  12. Conditional Cash Transfer programs

  13. Education Accomplishment: Access Education systems through LAC have almost all primary age students attending school Net Enrollment Rate for Primary Education

  14. Education Challenges: Quality • Cognitive level of students lags behind that observed in countries at similar levels of income per capita • PISA 2006 results on science and level of income Argentina Source: OECD PISA 2006

  15. Education Challenges: Equity Significant income-related inequality in access, learning and overall educational results Primary completion rates: Share of youths 15-24 years with a primary school degree Source: Houselhold Surveys 2002-2006, SEDLAC

  16. Preschool Primary Secondary Tertiary Education Priority Areas Readiness to Learn School to Work Transition Quality of Teachers IDB EDUCATION

  17. Developed East Asia Middle East Eastern Europe LAC Rest of Asia Africa Health has had outstanding improvements Life Expectancy* 80 71 70 62 60 55 50 40 30 20 10 0 1950s 1970-75 2000-05 * Averages Source: UNDP (various years). Human Development Report.

  18. Developed East Asia Middle East Eastern Europe LAC Rest of Asia Africa …and infant mortality is converging fast to OECD levels Infant Mortality (Per 1000 live births) 140 120 100 80 60 40 20 0 1970 1980 1990 2004 Source: UNDP (various years). Human Development Report.

  19. …nevertheless, new challenges emerge… Burden of disease by clusters of causes in LAC (2002) • Infectious diseases, maternal and birth related causes, acute malnutrition • Chronic diseases • External Causes and Violence

  20. Strategic priorities in health • Supporting the establishment of national health priorities, linked with epidemiological profile and needs of the poor and excluded • Strengthening the supervisory and regulatory role of the Health Ministries • Separating financing and service delivery functions • Improving the effectiveness of the services through primary health care • Regional initiatives: nutritional, epidemiological surveillance, prevention of HIV/AIDS in mobile populations, drugs management and procurement, national health accounts etc. • Malnutrition: Chronic undernutrition affects 8.8 million children under 5, particularly in Central America and Andean countries

  21. Labor markets in LAC in recent years show reason for cautious optimism…

  22. 0% 5% 10% 15% 20% 25% Unemployment, low wages, and employment instability are the main labor problems in Latin America. Most important problem in your country Desempleo Corrupción Pobreza Delincuencia /Insecuridad Inestabilidad laboral Bajos salarios Terrorismo/ violencia política Baja calidad en la educación Inflación Falta de oportunidades para jóvenes Consumo de drogas Violaciones derechos humanoa Problemas de salud Tráfico de drogas Problemas de vivienda Transporte Medio ambiente Discriminación racial De: Latinobarometro, IPES, BID

  23. Strategic Priorities • Accelerate the creation of decent jobs and improve growth rates in the region • How? • Increasing the efficiency with which workers are matched to jobs Ease reallocation through effective Labor Intermediation Systems. • Adequately insuring workers against the risks of high job rotation Provide feasible and adequate income protection that do not penalize work/production. • Enhancing the opportunities of workers by increasing their skills. Training systems and emphasis on basic education • Improve the labor administration capacity to register, enforce and evaluate labor laws and regulations

  24. Thank you www.iadb.org

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