CAF participates in the launching of the OECD Regional Program for Latin America

In the framework of the launching of the OECD Regional Program for Latin America and the Caribbean, Enrique Garcia, Executive President of CAF, Development Bank of Latin America, highlighted the social and economic advances achieved in the region during the last decades, and emphasized the need to expand the capacities of the State to promote a better design, implementation, and execution of public policies in order to achieve greater productivity and inclusive growth. 

In addition, García, was one of the main speakers in the 2016 OECD Forum, held in Paris on June 1st in the framework of the annual meeting of the Ministerial Council, under the presidency of Chile. The LAC Regional Program was launched in this meeting, The objective of this initiative is to support the region in the advancement of three key priorities: increase productivity, improve social inclusion, and strengthen institutions and governance. 

In his presentation, García pointed out that although advances were made in the region's economic performance during the past two decades, they were insufficient to increase the wellbeing of the population as desired. He highlighted that the region must grow at a rate of at least 5 percent annually to converge with the countries of the OECD, and reiterated that Latin America continues to be the region in the world with the greatest inequality in terms of income distribution, and that it is still necessary to combine growth and equity to achieve greater cohesion and social inclusion. 

He pointed out that a priority to achieve greater equality is to expand the level of formal employment creation, in order to reduce the increase of the circle of poverty, labor precariousness, and the vulnerability associated with income instability in homes. In particular, he underlined the role of quality education in the productive transformation of Latin America, and the importance of developing working skills, especially among the young people.  

A key aspect related to governance and institutional strengthening is the need for efficiency in the public sector, so that the results of the policies may be noticeable and measurable. To achieve this, García considers that there are three essential objectives: increase working productivity of public officials, reform the mechanisms for public hiring so that they are more transparent and competitive, and establish a monitoring and evaluation system for a close follow-up of the application and results of public policies.  

The launching of this initiative, as well as the 2016 OECD Forum, included  the participation of renowned individuals from several countries and institutions in the region. Among them, the Presidents of Chile and Peru, the Vice President of Costa Rica, ministers of finance of the region, and officials from international institutions such as the OECD, IDB, SEGIB, and ECLAC, among others. 

CAF´s President greeted the OECD`s initiative to launch the LAC Program, as it constitutes a strategic and horizontal cooperation framework, facilitating the exchange of experiences and best practices regarding public policies. As a result of its wide knowledge and experience regarding these issues, CAF will be one of the leading institutions in the region, working in close collaboration with the Program, jointly with the IDB and ECLAC.