development in Latin America and the Caribbean: The territory - PowerPoint PPT Presentation

2030 Agenda for sustainable development in Latin America and the Caribbean: The territory matters ALICIA BÁRCENA EXECUTIVE SECRETARY INEGI México D.F ., November 11, 2015

Contents 1. Equality as the main dimension of development 2. The 2030 Agenda for Sustainable Development 3. Persistent gaps 4. Challenges for the implementation of 2030 Agenda 5. Role of data, statistics, and geographic information 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

Why time for equality? • The international financial crisis marked a turning point which broke the continuity of a market model associated to decades of wealth concentration • Three critical tensions need to be addressed: o Culture of privileges/Culture of equality o Distribution of productivity gains between capital and labour (wage bill) o Rent-seeking and extractivism versus the sustainability and governance of natural resources • Inequality is not inevitable • Predominance of finance over the real economy • Crisis on a planetary scale: food, energy , climate 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

What is proposed under the Agenda 2030 for development and the SDGs? • A civilizatory agenda oriented to people, planet and prosperity . • A universal Agenda that proposes equality for growth and growth for equality beyond basic needs o Eradicates extreme poverty by 2030 o Universalizes rights, social benefits and access to education and healthcare o Fosters inclusion through the labour market o Promotes equality by building human capacities o Preserves the ecological integrity of the land and sea o Global collective action to protect the biosphere (stop climate change) and the commons (oceans , biodiversity , forests) o Gender equality o Holistic agenda which links peace, security, human rights and development o Access to information, data innovation, justice and social participation o Global compact for financing, trade and technology transfer 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

The 2030 Agenda 2030: 17 Goals – 169 targets • Access to open, impartial and public information on demographic, geographic, economic, social and environmental data and trends provided by official statistical agencies 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

Agenda 2030 proposes: growth for equality and equality for growth Economic inclusion: structural change + industrialization • Productivity gaps: full employment opportunities • Decent jobs: income/functional distribution, fair wages • Investment gaps: infrastructure, roads, energy, • Capabilities gaps: education, science and technology inclusion Social inclusion: universal access to social protection • Progressive compliance and fulfillment of rights, • Attain critical aspirations of society: safety, health and a prosperous society within the planetary boundaries • Poverty eradication, food security/nutrition, health + well-being Environmental inclusion: access to public goods • Re-distribution of rents and productive gains from extraction of natural resources, quality of life for all, global public goods • Environmental Protection • Public services, quality of life and urban environment 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

Latin America and the Caribbean faces eight structural challenges: 1. Difficult external context with tectonic changes 2. Weaker growth, trade and consumption 3. Investment too slow to drive development and innovation 4. Insufficient and limited fiscal space: tax collection is low and poorly implemented; debt is very high in the Caribbean 5. Low productivity and competitiveness with reprimarization and poor innovation and value added 6. Environmental unsustainability, increasing carbon intensity of economies and severe climate vulnerability 7. Insufficient intraregional trade, with a low degree of integration of value chains 8. Functional inequality: growing concentration of income, capital and technology 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

Tectonic shifts • Reorganization of the global economy and international politics into blocs : TPP, TTIP, RCEP, BRICS • De-linkage between the financial market and the real economy • Unprecedented technological revolution • Demographic transition and migration are changing the development profile • Urbanization trends: 80% of the population live in cities • Increasing ecological footprint • Climate change and vulnerability to natural disasters, with a cummulative costs of US$ 350 billion • Social conflicts, insecurity, violence 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

The Megaregional negotiations seek to link the three great world "factories” FTA Japan-European Union Trasnpacific Transatlantic Trade and Trade Investment Partnership Partnership Regional Comprehensive Economic Partnership ASEAN +6 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

2010: 23 Aged economies 2040: 89 Aged economies 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

1. A more complex global context • The world economy has not expanded as expected. Growth projections for 2015 were downgraded from 3.2% to 2.5%. • Upturn in growth in the United States (about 2.5% in 2015) with positive impacts for remittances, tourism and trade in Mexico, Central America and the Caribbean. • Fiscal imbalances and lack of competitiveness in the Eurozone , plus high unemployment and slow growth of 1.6% in 2015 are acting as a drag on global trade. • Slowdown in China from a growth of 9.2% in 2011 to less than 7.0% in 2015 is having an impact on countries that export natural resources. • End of quantitative easing (QE) in the United States and launch of QE in Europe likely to create more volatile financial conditions. • The region is not growing: -0.3% of GDP for 2015 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

2. The economic and trade slowdown indicates a future with lower growth LATIN AMERICA AND THE CARIBBEAN: ANNUAL VARIATION IN LATIN AMERICA AND THE CARIBBEAN: GDP GROWTH MERCHANDISE EXPORTS, 2000-2015 a ( Percentages, on the baisis of dollars at constant 2010 prices ) (Percentages) Panamá República Dominicana Guyana 30 Saint Kitts y Nevis Bolivia (Estado Plurinacional de) Nicaragua Cuba 20 Guatemala Honduras Paraguay Suriname 10 Colombia Perú 1.0 Costa Rica Belice 0 Uruguay San Vicente y las Granadinas México -15.0 El Salvador -10 Chile Bahamas Antigua y Barbuda -14.0 Haití -20 Dominica El Caribe 1.6 Argentina Barbados -30 Granada 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Jamaica Trinidad y Tabago Ecuador Santa Lucía -0.3 América Latina Brasil Volume Price Value Venezuela (República Bolivariana de) -8 -6 -4 -2 0 2 4 6 8 Source : ECLAC, based on official figures from the countries’ central banks, customs offices and national institutes of statistics. a Figures for 2015 are projections. 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

3. Investment is too low to drive development GROSS FIXED CAPITAL FORMATION, 1970-2014 (Percentages of GDP, on the basis of dollars at constant 2005 prices)  In infrastructure 45  In research, science 40 and innovation 35  In development 30 banking: inclusive 25 23.6 financing 20.4 20.5 20.8 20.4 19.5 20  In cleaner 15 production solutions 10 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Latin America Eastern Asia and Pacific Source : Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures and World Bank, World Development Indicators. 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

3. Major gaps in economic infrastructure ELECTRIC GENERATION, 1980-2012 DENSITY OF ROAD NETWORK, 2007 AND 2012 (Megawatts per 1,000 inhabitants) (Kilometers per 100 km 2 ) Source: ECLAC,, Econmic Survey 2015. Online: http://repositorio.cepal.org/bitstream/handle/11362/38715/S1500732_en.pdf?sequence=111 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena

4. Tax collection is low and poorly implemented INTERNATIONAL COMPARISON OF THE LEVEL AND STRUCTURE OF THE TAX BURDEN (Percentages of GDP)  Regressive tax structure  Low tax burden in most countries  High evasion  Widespread exemptions  Social spending has a limited redistributive impact Source: Economic Commission for Latin America and the Caribbean (ECLAC), Organization for Economic Cooperation and Development (OECD) and International Monetary Fund (IMF). a The coverage for calculating the Latin American average refers to central government except in Argentina, Brazil, Chile, Costa Rica and the Plurinational State of Bolivia, where it refers to general government. 2030 Agenda for sustainable development in LAC: The territory matters Alicia Bárcena