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Pulled down by deep recessions in Brazil and Venezuela, as well as falling commod- ities prices and uncertainty in China, Latin America is likely headed for recession in 2016, according to the IMF.
more complex, and that Mexico, Para- guay, and Costa Rica in particular are succeeding in this regard.
EDUCATIONAL REFORM IS KEY
Increased attention to workforce skills
is vital in order to create long-standing economic improvement in Latin Amer- ican countries. The Organisation for Economic Co-operation and Development (OECD) stated in a 2015 report that “Latin American firms in the formal
economy are three times more likely than South Asian firms and 13 times more likely than Pacific Asian firms to face serious operational problems due to a shortage of human capital.”
Businesses in Latin America report that in addition to needing technical and professional training, the workforce is largely lacking in general and soft skills. They mention issues with dependability, determination, and interpersonal skills, which makes it difficult for employers
to maintain a stable, productive work- force. The OECD believes that shifts in education are critical to raising produc- tivity levels of Latin American countries. Public spending on secondary education for Latin American countries accounts for 18 percent of GDP per capita, whereas the average number for OECD countries is 26 percent per capita. Even though Latin American countries have increased spending and provided educational
access to all but the most remote areas,
16 STRATEGY