LEO 2022 analyzes the green and digital transition in Latin America

The Bolívar room of the Casa de América was the setting for the presentation of the Latin American Economic Outlook Report. The welcome was given by Enrique Ojeda, general director of Casa de América.

The event was opened by Ragnheiður Elín Árnadóttir, Director of the OECD Development Centre, who pointed out that“The green transition represents a unique opportunity for Latin America and the Caribbean to move towards a more inclusive and sustainable development model. As the LEO 2022 report shows, if we make the necessary investments, the green transition can lead to a net increase in employment of 10.5% by 2030 in the region”.

For the person in charge of this organization,"The relationship between Latin America and the Caribbean and the European Union offers great potential to advance a shared development agenda, and Spain's leadership during its presidency of the Council of the European Union will be essential to promote this strategic alliance".

Verónica Frisancho, CAF's Knowledge Manager, highlighted the problems in Latin America and the Caribbean when it comes to facing the digital and green transition: low productivity, social gaps and persistent intergenerational inequalities, to what is Add low growth and fiscal challenge. “Despite this, our natural capital absorbs a third of CO emissions2 global. So the region can make an important contribution to combating climate change.”, he pointed.

The executive of the Latin American development bank launched proposals such as the creation of a regional carbon market and stated that“It is essential to think of a parallel agenda for the reconversion of human capital, for which collaboration with multinationals and the private sector is necessary. To advance in this effort, public policies are more effective when there is evidence to support them, and this report is key to that.".

The opening ceremony also included an online intervention from Brussels by Olivier Luyckx, Head of Unit of INTPA for South America and EU Regional Operations, who highlighted the emblematic nature of the LEO report and highlighted its importance for understanding the challenges and be able to define and develop the necessary solutions for Latin America and the Caribbean.

Report presentation

The report was then presented by Marco Llinás, from ECLAC, also virtually, who pointed out that“We insist that Latin America has to move towards a new development model, with a digital and green transition, and social inclusion. There are great business opportunities in sustainability, but aid is needed to articulate the public and private sectors, universities and civil society”.

For Sebastián Nieto, head of the Latin America and the Caribbean Unit of the OECD Development Center, one of the keys will be to face the serious employment problem that Latin America has, with 45% of households in which all their members work in the underground economy and two thirds with some member in this situation, especially in the so-called brown sectors, with higher emissions."It is important to face the employment problem, because if only decarbonization is faced until 2030, unemployment will increase by 10% in the region"he warned.

On behalf of CAF, its manager for Europe, Asia and the Middle East, Ignacio Corlazzoli, highlighted another of the region's problems: the fiscal problem:“Latin America and the Caribbean have limited fiscal space to implement the transition, so it is essential to mobilize bank financing”.

Corlazzoli took advantage of the occasion to recall that tomorrow, July 1, Spain assumes, for the fifth time in its history, the Presidency of the Council of the European Union and highlighted CAF's firm commitment to Spain and the European Commission in this important mission, acting as a partner strategy to contribute to the promotion of a New Agenda for EU-LAC relations.

For this reason, on July 17, CAF, together with the IDB and the European Commission, organizes the Business Forum within the framework of the EU-CELAC Summit of Heads of States in Brussels to promote high-level dialogue between business and government leaders on a green, digital and fair transition.

In addition, on September 15 in Santiago de Compostela we organized with the Government of Spain, the first meeting of the 33 Latin American and Caribbean Finance Ministers and the 27 from the EU, to accelerate a cooperation and investment agenda. A unique opportunity.

After the presentation, there was a debate moderated by José Antonio Sanahuja, director of the Carolina Foundation, with the participation of Trinidad Jiménez, director of Public Affairs and Global Strategy at Telefónica; Laura Oroz, from AECID, and Andrea Costafreda, from Oxfam.

At the closing of the event, Andrés Allamand, Ibero-American Secretary General, summarized what, in his opinion, were the most outstanding points of the day, and placed special emphasis on addressing the problem of growth in Latin America:“To make a green transition, it is better to do it from a powerful growth. And it is necessary to urgently address the problem of poverty, creating a receptive environment for investment, with political stability, stable regulatory frameworks and legal certainty”.

The event closed with the intervention of Juan Fernández Trigo, Secretary of State for Ibero-America, who recalled that on July 1 Spain assumes the Presidency of the Council of the European Union and promised to promote the environmental transition in a socially just manner.“We have not had a continuous dialogue with Latin America since 2015. Our presidency wants to remedy it, because cooperation between the two is key to facing the digital, social and environmental transition", he concluded.