More Investment in Infrastructure, Education, and Inclusion is Essential for Development

(WASHINGTON, DC, September 5, 2013) Staff members of international organizations and distinguished economists who met at CAF's XVII Annual Conference agreed that Latin America must start a productive transformation process to reach sustainable and permanent development, so as not to depend so much on favorable external factors.       

Enrique Garcia, Executive President of CAF ―Development Bank of Latin America― stated that facing these times of transition, the region must invest in education, technology, and infrastructure. Mr. Garcia was the moderator  in the session of the conference's second journey, in Washington DC. He stated that "a fundamental challenge is the aggregation of value to the region's natural advantages, through technological development and training of its human capital". 

Ernesto Talvi, Director of the Latin American Initiative at the Brooking's Institution added that despite the recent period of growth at an educational level, it has not improved enough, stating that "to create a long lasting prosperity, we must make a greater effort in terms of educational achievements, otherwise, our societies will not be transformed". 

Luis Alberto Moreno, President of the Inter-American Development Bank (IDB) stated that "without the winds of the past, we must grow by ourselves, betting on greater productivity, better education, and social inclusion. South Korea invests in education more than all Latin American countries together". 

More than 50 million people have found a way out of poverty in the region in the past decade. However, the panelists agreed that inequalities in the region are still large. Alicia Barcena, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), highlighted that policies favoring a greater social inclusion are necessary,  where a strong State is essential, stating that "we must invest more on social aspects, not only on infrastructure but also on technology such as wide band, which should have universal access".   

Hasan Tuluy, Vice-President of the World Bank, stated that it is not only important to reduce poverty, but also the unequal distribution within the regions of a country. 

Investment in infrastructure is another essential element for Latin America's productive transformation. Garcia stated that "today we invest on average close to 3 percent of GDP. In the next five or six years we should, as a minimum, double our investment in infrastructure and, in this context of lower growth, public-private associations will be fundamental". 

During two intense working days, more than 700 political leaders from Latin America, the United States, international organizations, distinguished entrepreneurs, members of the financial community, academics, journalists, and political analysts, debated in CAF's XVII Annual Conference regarding a variety of issues of hemispheric interest, such as foreign policy in the United States, economic development, drug policies, as well as innovation and entrepreneurial spirit.