Strategies to achieve a better social policy in Latin America

Bogota, March 11, 2008.- An analysis of the challenges of social policy in terms of relieving poverty and generating opportunities was today given by CAF chief economist Miguel Castilla during the presentation of the fourth edition of Report on Economy and Development in the Luis Ángel Arango Library in Bogota.

"Lack of opportunities is reflected in the persistent levels of poverty in the region. One out of ten Latin Americans lives on less than a dollar a day, while approximately one out of four do so on less than $2 a day, and this situation has not changed significantly in the last 25 years," Castilla explained.

He added that the economic and political costs of these problems were today clear and reflected in the growth of the informal sector, economic polarization, very limited social cohesion, as well as stronger demands from actors previously excluded from citizen participation processes for respect for their fundamental rights, access to basic services and opportunities for greater social improvement.

In this context, RED 2007-2008 emphasizes the importance of public intervention for achieving an integrated economic and social policy, together with the need for a permanent and sustainable improvement in the efficiency of social policy on a long-term basis.

Castilla considers that, although it is recognized that economic growth is essential for raising the standard of living of the population in the long term, this is not necessarily the case in the short term, which justifies the need for public policies that pursue this objective.

"Public policies that pursue the objective of greater social mobility, especially in less favored sectors of the population must focus on generating quality employment, providing capacities to break the inter-generational reproduction of poverty, expanding access to all basic services, and increasing coverage of old age pensions, among other objectives," the CAF chief economist said.

The event, which was opened by CAF representative for Colombia Freddy Rojas Parra, was attended by Carlos Rodríguez, technical vice minister of the Ministry of Social Protection; Alejandro Gaviria, Dean of the University of the Andes; Carmen Pagés, IDB economist; and José Darío Uribe, general manager of Banco de la República.