Transformative knowledge

Knowledge that Transforms

Twenty Years Serving a Prosperous, Inclusive and Sustainable Future

About the report

In recent decades, Latin America and the Caribbean have made remarkable progress: GDP per capita in the region has grown by 40% in Latin America and 16% in the Caribbean since 1970, democracies have generally been consolidated, and poverty has been significantly reduced. However, profound challenges remain: one in three inhabitants still lives in poverty, the region continues to be one of the most unequal in the world, and it faces critical problems such as insecurity, labor informality and the weakness of its state capacities.

This book offers a comprehensive vision for understanding and addressing these problems, exploring the triple challenge of growing, including and protecting the environment. The text combines rigorous diagnoses with innovative proposals that lay the foundations for a more just, sustainable and resilient development, and is enriched by the perspectives of internationally renowned experts, invited to reflect on the most pressing problems in the region.

Report content

Chapters

Inspirational leaders

Reflections on the main challenges for development and the usefulness and relevance of the series for the design of public policies in Latin America and the Caribbean.

In figures:

Twenty years at the service of a prosperous, inclusive and sustainable future

Poverty and inequality

30%

of the population lives in poverty.

78%

of wealth is in the hands of just 10% of the population, while the poorest half accumulates just 1%.

86%

of young people whose parents did not have a university education will not complete higher education.

In figures:

Twenty years at the service of a prosperous, inclusive and sustainable future

Growth and productivity

70%

lower is the per capita income in LAC compared to that of the USA.

27%

was the productivity per worker in the region relative to the US by 2023.

82%

growth in physical capital per worker between 1990 and 2023.

In figures:

Twenty years at the service of a prosperous, inclusive and sustainable future

Informality

57%

of workers in the region are informal, that is to say, they do not make social security contributions.

Approximately 1 in 4

Latin Americans and Caribbean people live in informal settlements, with low levels of basic domestic service coverage.

40%

increase, on average, in contributions to contributory pension systems if the informal labor sector were to be halved.

In figures:

Twenty years at the service of a prosperous, inclusive and sustainable future

Natural assets

6 of the 17

countries defined as megadiverse are in the region.

56%

of global lithium resources are concentrated in LAC.

21%

of LAC exports were agricultural products in 2023.

In figures:

Twenty years at the service of a prosperous, inclusive and sustainable future

Environmental sustainability

54%

of GHG emissions in Latin America are associated with land use and agricultural activity; in contrast, these represent 20% globally.

61%

of electricity in LAC is produced without using fuels, with hydraulic energy being the predominant source today.

13.5

times the region's wind and solar energy capacity must grow by 2050 to meet the commitments made.

About RED

The first Report on Economic and Development (RED) was published in 2004 in response to the growing need to generate knowledge to support the operations of CAF, Development Bank of Latin America and the Caribbean, and to facilitate evidence-based decision-making. Conceived as a knowledge platform, RED has fostered informed discussions on public policy on key issues for regional development.

Each edition addresses a highly relevant issue, providing a comprehensive and rigorous diagnosis, reviewing the best available evidence and filling knowledge gaps through original research. Its main objective is to offer clear, viable policy recommendations designed from and for the region.

Thanks to this approach, the RED has established itself as an indispensable point of reference for those who design and implement public policy in Latin America and the Caribbean, contributing to the effective development of the region.

Vision CAF