Page 16 - ARUBA TODAY

A16 LOCAL
Tuesday 10 april 2018
Three out of four Latin Americans show little

or no confidence in national governments

BRUSSELS - Regaining citi- nexus through three axes of
zens’ trust in public insti- policy actions:
tutions is key to resuming
inclusive growth and well- * First, sounder institu-
being in Latin America tions are needed to over-
and the Caribbean. This is come the middle-income
the outcome of the Latin trap and to raise produc-
American Economic Out- tivity through investments
look 2018 report by OECD, in infrastructure, skills, tech-
ECLAC and CAF, with the nology, and research and
cooperation of the Europe- development to spur in-
an Commission, launched novation, competition
today in Brussels. and better jobs. The re-
gion needs to diversify its
Three out of four Latin production structure and
Americans today show increase its value-added.
little or no confidence in Further regional and global
their national governments. integration is key, notably
Around 80% think corrup- by making the most of the
tion is widespread. These promising dialogue be-
levels are both up from tween all regional integra-
55% and 67% respectively tions initiatives, notably the
in 2010. Mistrust is rising as Pacific Alliance and Mer-
in most regions of the world cosur; and between the
and risks deepening discon- region and other trading
nect between people and blocs.
public institutions, harming * Second, renewing
social cohesion and weak- the social contract in LAC
ening the social contract. in Central America out- markable socio-economic public institutions declined demands reinforcing the
Reconnecting public in- performing Mexico, South progress achieved over the and satisfaction with public credibility and capac-
stitutions with citizens by America and the Carib- previous decades. Today, services has deteriorated, ity of states to fight corrup-
better responding to their bean. The on-going recov- 23% of Latin Americans still eroding the social contract tion, deliver services and
demands is thus critical ery is due mostly to the im- live below the poverty line, in the region. For instance, respond to citizens’ de-
for strengthening growth proving global economic and around 40% belong the share of the popula- mands. Enforcing integrity
and sustainable develop- outlook, but also improve- to the vulnerable middle- tion satisfied with the qual- at all levels of government
ment in Latin America and ment in domestic condi- class. ity of healthcare services and improving regulatory
the Caribbean (LAC) and tions. Nevertheless growth fell from 57% in 2006 to 41 frameworks would foster
for the well-being of the performance remains less At the same time, the re- % in 2016, well below levels greater accountability. As
region’s citizens, accord- favorable than during the port highlights the rapid ex- in the OECD of around 70%. for making institutions more
ing to the Latin American growth cycle of the 2000s. pansion of the middle-class Likewise, satisfaction with effective, the report points
Economic Outlook 2018 The three organizations as one of the major socio- the education system fell to several successful exam-
(http://www.latamecon- point out the critical role economic transformations from 63% to 56% over the ples from the region of bet-
omy.org/EconomicOut- played by institutions in of recent times in LAC, be- same period. This contrib- ter mobilizing tax revenues,
look/), Rethinking Institu- overcoming the middle-in- tween 2000 and 2015. 34.5 utes to citizens’ discontent strengthening administra-
tions for Development. The come trap - the slowdown % of the population could and their unwillingness to tive capacities - notably by
region needs more trans- in growth taking place be considered consolidat- pay taxes - so called “tax enforcing merit-based re-
parent, capable, credible after reaching middle- ed middle-class in 2015, up morale” - because they cruitment systems - tapping
and innovative institutions income levels - in which from 21% in 2001. If subjec- find them unjustifiable. In centers of government
if it wants to put itself on a most Latin American and tive measures of social class 2015, 52% of Latin Ameri- (dedicated administra-
higher and more inclusive Caribbean economies re- belonging are used, even cans said they wanted to tive units that help heads
development trajectory. main tangled. Countries in more Latin Americans con- evade taxes if possible, of government ensure the
other regions that success- sider themselves as “middle an increase of 6% since coherence of various sec-
Critical Role Institutions fully overcame this trap in- class,” although their level 2011. Discontent with pub- toral policies), and improv-
After five years of econom- vested in strong institutions, of income would position lic services is more pressing ing public management
ic slowdown and a two- deepened their integration them in the lower revenue amongst vulnerable and cycles.
year recession in 2015-2016, with the world economy category. The influence of poor Latin Americans who * Finally, using new
LAC is on the path of a frail and, in some cases, ben- the middle-class on the po- cannot afford to seek bet- technologies to implement
economic recovery. Ac- efitted from significant ex- litical agenda - driven by ter quality, more expensive policies in innovative ways
cording to estimates in the ternal financing that sup- higher aspirations, growing services from the private can help reconnect with
Outlook, the region’s gross ported public investment. expectations and evolv- sector. citizens and prepare for
domestic product (GDP) ing demands - may thus the future. This involves, for
is projected to increase Decline Trust be even greater than sta- Actions instance, engaging better
again between 2 and 2.5% The weakening of the re- tistics suggest and explain Supported by this evi- with civil society on new
in 2018, after reaching gion’s economic perfor- the growing dissatisfaction dence, the Latin American technologically innova-
1.3% growth on average mance over recent years with the quality of public Economic Outlook 2018 tive platforms, facilitating
in 2017. This range masks already has had an impact services. calls for rethinking institu- open-government policies
wide heterogeneity within on living standards and tions and for building a and more extensively using
the region, with countries could jeopardize the re- The report notes that trust in new state-citizens-market big data analytics.q