A radical transformation of the labor market is a vital situation for socially inclusive progress in Latin America and the Caribbean. This requires a considerable overhaul of the social safety structure, Santiago Levy, a outstanding Mexican economist and politician, sustained at this time in a keynote lecture delivered on the important headquarters of the Financial Fee for Latin America and the Caribbean (ECLAC) in Santiago, Chile.
“We now have to beat the formal-informal dichotomy with a unique social safety structure. ECLAC has proven the best way. Its requires universalizing social safety, other than its immense social advantages, open the door for beginning to overcome the unfavorable linkage we’re having between social safety and productiveness within the area,” affirmed Santiago Levy, who was acquired by ECLAC’s Govt Secretary, José Manuel Salazar-Xirinachs.
The Nonresident Senior Fellow on the Brookings Establishment participated within the Keynote Lecture Series organized to commemorate ECLAC’s 75th anniversary. Levy gave a presentation entitled “Social safety and productiveness in Latin America,” which is the seventh such occasion within the collection that started in July and can run by February 2024.
At first of his presentation, Levy recalled that Latin America is without doubt one of the most unequal areas on the earth, regardless of important will increase in social safety spending, which rose from round 7% of GDP in 1990 to 14% in 2020. He added that additionally it is one of many areas on the earth that grows the least, primarily as a consequence of stagnant productiveness: between 1990 and 2017, the common progress price of whole issue productiveness within the area was (–) 0.08%.
“Financial exercise in Latin America and the Caribbean may be very dispersed. Round 50% of the economically lively inhabitants is both self-employed or employed in firms with fewer than 5 staff. There are lots of very small firms, the overwhelming majority of them casual,” he warned.
In his presentation, the previous basic director of the Mexican Social Safety Institute burdened that there’s an incompatibility within the area between the social safety structure and productiveness.
“Social safety insurance policies section the labor market, they skew the allocation of assets in direction of smallness and informality, distort provide chains and contribute to a dysfunctional enterprise dynamic,” he contended.
The speaker, additionally a scholar, highlighted the quite a few contributions made by ECLAC, emphasizing specifically its contributions on social safety and productive transformation.
“ECLAC has studied the realm of social insurance policies and manufacturing insurance policies. It’s essential to additional research this hyperlink, which is essential. We economists have divided the world into two huge elements: social insurance policies and social safety, and manufacturing insurance policies. That has been a conceptual error. Social safety is a manufacturing coverage, for higher or worse, however it’s,” he stated.
In his remarks, José Manuel Salazar-Xirinachs, ECLAC’s Govt Secretary, burdened that among the many challenges the area is going through, low financial and productiveness progress, and social safety programs’ protection gaps and weaknesses, are associated challenges that stand out.
“As we speak we proceed the lecture collection with which we’re celebrating ECLAC’s historical past and achievements but in addition, and above all, these lectures problem and encourage us to mirror and to additional discover our concepts and analyses to help nations in constructing a extra productive, inclusive and sustainable future,” he acknowledged.
He emphasised that Santiago Levy has contributed not solely to higher understanding the issues of poverty, competitiveness, change price and commerce insurance policies within the educational realm, but in addition to tackling them and overcoming them within the public service area.
“Considering in an effort to do, and doing by reflecting and analyzing, is what Santiago Levy has carried out, and that’s what ECLAC does too. That’s the reason this lecture is especially applicable on this collection for ECLAC’s seventy fifth anniversary, to have a good time our historical past and to strengthen our capability to face the long run,” he concluded.
Santiago Levy is the seventh lecturer to take part within the collection organized to have a good time the seventy-fifth anniversary of ECLAC, which was based in 1948 as one of many United Nations’ 5 regional commissions.
By means of February 2024, different outstanding thinkers will go to the Fee’s headquarters in Santiago to current their views and concepts in regards to the challenges going through the world and the area. The complete checklist of lecturers is offered here.
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