ECLAC Development Planning 2010-2011: Challenges & Priorities

1. DRAFT PROGRAMME OF WORK 2010-2011 José Luis Machinea Executive Secretary of ECLAC Santo Domingo, 11 June 2008

2. CONTENTS • Regional assessment 2003-2008 and challenges to development in Latin America and the Caribbean • Priorities for ECLAC in the future • Strategy and working modalities • Discussion on the draft programme of work 2010-2011

3. GLOBAL CONTEXT 2003-2008 • Record growth of world GDP and world trade in the past 30 and 25 years, respectively, have boosted regional expansion • New geography of financial and trade flows: the importance of China and Asia • Increased international liquidity • Downward pressure on country risk levels • Economic cycle highly dependent on linkages between the United States and China

4. CONTEXT OF LATIN AMERICA AND THE CARIBBEAN2003-2008 MAIN ECONOMIC ISSUES • Period of strongest continuous growth in the past 40 years • Significant subregional differences • A 16% increase in per capita GDP between 2003 and 2007 • Cautious optimism with growth forecast to reach 4.7% in 2008 • Improved macroeconomic management and less vulnerability to external shocks • Higher, albeit lower-quality, investment levels and with a downturn in inward FDI compared with the rest of the developing world • Specialization in less buoyant production sectors and limited integration in international markets

5. CONTEXT OF LATIN AMERICA AND THE CARIBBEAN 2003-2008 MAIN SOCIAL ISSUES • A fall in relative and absolute poverty levels • Creation of more and better-quality jobs • Increase in life expectancy and reduction in child mortality • Advances in gender equity in education • Increase in international migration and internal migration flows • Fragility of democratic institutions due to social tensions • Decline in social cohesion

6. CONTEXT OF LATIN AMERICA AND THE CARIBBEAN 2003-2008 MAIN SUSTAINABLE DEVELOPMENT ISSUES • Advances in environmental management institutions • Generation of instruments and policies for economic and environmental integration • Advances in water and sanitation • Degradation of natural heritage and biodiversity • Energy vulnerability • Increased vulnerability to natural disasters (Caribbean and Central America) • Limited advances in integrating sustainability in sectoral areas

7. RISKS AND CHALLENGES GLOBAL CONTEXT • High degree of uncertainty globally (volatility of international financial markets) • Sharp slowdown in the U.S. (slight recession, but one that may be of long duration?) • Slowdown in Europe and Japan • Possible slowdown in China (although growth should continue to be strong) • Increase in the price of oil, other energy products and food may generate further recessionary impacts

8. RISKS AND CHALLENGES FOR LATIN AMERICA AND THE CARIBBEAN ECONOMIC DEVELOPMENT • Differential impacts of the slowdown in the U.S. • The challenges: to maintain an orderly macroeconomic environment and cushion the impact of rising food prices on the lowest-income sectors • Avoid excessive currency appreciation • Tackle rising inflation • Avoid procyclical public spending • Create better-quality investment opportunities • Diversifying the production structure and adding value to exports

9. RISKS AND CHALLENGES FOR LATIN AMERICA AND THE CARIBBEAN SOCIAL DEVELOPMENT • Socio-economic inequalities • High social vulnerability of the most marginalized sectors • Need for greater investment in human capital, welfare and social protection and in the quality of education - Extent and efficiency of social spending • Adapting to demographic changes and population ageing • Need to strengthen social cohesion

10. RISKS AND CHALLENGES FOR LATIN AMERICA AND THE CARIBBEAN SUSTAINABLE DEVELOPMENT • Improving the sustainable management of natural resources, water and land use • Need for more sustainable urban management • Increasing energy efficiency and diversifying the energy matrix • Need to adapt to climate change and to mitigate its economic and social impacts • Improvement of regional infrastructure and competitiveness • Need to continue to improve environmental institutions and to integrate the sustainable development perspective in public policies

11. CONTENTS • Regional assessment 2003-2008 and challenges to development in Latin America and the Caribbean • Priorities for ECLAC in the future • Strategy and working modalities • Discussion on the draft programme of work 2010-2011

12. ECLAC PLANNING PROCESS FOR 2010-2011 • General Assembly and ECOSOC mandates • Development agenda of ECLAC member States • Collective process of reflection in organizational units within ECLAC (“bottom-up approach”) • Regional assessment • Discussion of priorities • Identification of cross-cutting issues • What to do, how and with whom?

13. INTERNATIONALLY AGREED DEVELOPMENT GOALS, INCLUDING THE MILLENNIUM DEVELOPMENT GOALS • Pivotal elements of the ECLAC work priorities • Integrated into the substantive contents of all subprogrammes • Regular monitoring of progress towards their fulfilment in the region

14. ECLAC PRIORITIES IN 2010-2011 • Consolidating advances towards nominal and real macroeconomic stability • Improving integration into the international economy and participating in global value chains • Increasing the production potential and innovation • Promoting a social covenant by strengthening equity and social cohesion • Refining policies for the sustainable management of natural resources and adapting to climate change • Strengthening public management • Improving regional institutions, in particular those that deal with global and transboundary issues

15. Integration in the global economy Macroeconomics Training Repository of statistics and indicators ECLAC PROGRAMME STRUCTURE Multidisciplinary vision of development 12 integrated subprogrammes Productivity and international competitiveness Environmental performance State Modenization Social issues

16. LINKAGES WITH THE GLOBAL ECONOMY, INTEGRATION AND REGIONAL COOPERATION PRODUCTION AND INNOVATION MACROECONOMIC POLICIES AND GROWTH 12 INTEGRATED SUBPROGRAMMES ECONOMIC AGENDA

17. Economic agenda: Linkages with the global economy, integration and regional cooperation • Analysis of trade policies, the state of multilateral negotiations and monitoring trade and financial flows • Support for the integration and complementarity of bilateral agreements with regional, hemispheric and multilateral agreements • Strengthening the capacity to negotiate, administer and implement trade agreements • Design of medium- and long-term export-development strategies based on public-private alliances • Analysis of the relationship between trade policy and other areas of development (poverty, the environment etc.)

18. Economic agenda: Production and innovation • Reducing gaps in competitiveness between countries and with the rest of the world • Strengthening capacity and incentives for innovation and incorporation of new technologies • Fostering production chains to maximize value added and competition in global markets • Policies for the inclusion and modernization of micro and MSMEs and densification of the production framework • Improving the quality of investment and attracting foreign investment in higher-value-added sectors

19. Economic agenda: Macroeconomic policies and growth • Analysis of macroeconomic policies and follow-up of national, regional and global developments • Formulation of macroeconomic policies that will contribute to growth in a framework of greater equity • Formulation of countercyclical monetary and fiscal policies • Development of labour institutions that promote quality employment without neglecting competitiveness • Improving national financial systems (institutions, access, costs, new instruments) • Fostering domestic saving and investment • Financial architecture for development: improving global and regional sources

20. SOCIAL DEVELOPMENT AND EQUITY MAINSTREAMING THE GENDER PERSPECTIVE IN REGIONAL DEVELOPMENT POPULATION AND DEVELOPMENT 12 INTEGRATED SUBPROGRAMMES SOCIAL AGENDA

21. Social agenda:Social development and equity • Development of a rights-based social covenant • Design of policies that combine elements of the market, the State and family and generate solidarity-based financing in order to: • Provide universal social protection • Strengthen human capital formation • Reduce exclusion and achieve greater social cohesion • Design of more inclusive labour policies to ensure greater employability and sustained growth with equity • Strengthening social institutions and citizen participation • Analysis of emerging social demands (youth, the care economy)

22. Social agenda:Mainstreaming the gender perspective • Mainstreaming the gender perspective in public policies • Follow-up of the Beijing Platform for Action and the Quito Consensus (2007) • Deepening the analysis of emerging issues (time use, unpaid work, violence against women) • Establishing a gender parity observatory in Latin America and the Caribbean

23. Social agenda: Population and development • Follow-up of the International Plan of Action on Population and Development (Cairo), the Madrid International Plan of Action on Ageing and the Ibero-American Forum on Migration and Development • Incorporation of sociodemographic variables in social programming • Strengthening policies and measures designed for indigenous peoples and Afrodescendants • Analysis of new perspectives on internal migration (territorial mobility, inter-urban segregation, etc.)

24. SUSTAINABLE DEVELOPMENT AND HUMAN SETTLEMENTS NATURAL RESOURCES AND INFRASTRUCTURE 12 INTEGRATED SUBPROGRAMMES SUSTAINABLE DEVELOPMENT AGENDA

25. Sustainability agenda: Sustainable development and human settlements • Generation of information and indicators for assessing sustainable development in the region • Evaluation of environmental performance: enhancing externalities and modelling policies • Strengthening environmental institutions and the integration of environmental sustainability criteria in policies relating to the economy, urban management, land use and international trade • Analysis of economic policy options for adapting to climate change and mitigating its effects • Follow-up to international and regional sustainable development agreements (Mauritius Strategy, UN Framework Convention on Climate Change, etc.)

26. Sustainability agenda: Natural resources and infrastructure • Fostering sustainability of the pattern of resource-based international integration • Improving the provision of public services and promoting modernization and integration of infrastructure • Diversifying conventional and renewable energy sources in forming energy matrices and markets (with emphasis on energy efficiency, renewable energies and biofuels) • Analysis of income from the exploitation of the natural resource endowment and its possible uses • Boosting the competitiveness of the logistical chain as a central element of transport and infrastructure policies

27. PLANNING OF PUBLIC ADMINISTRATION STATISTICS AND ECONOMIC PROJECTIONS 12 INTEGRATED SUBPROGRAMMES TRAINING STATISTICS

28. Training agenda • ILPES, the training centre of the ECLAC system, organizes international courses • Priorities • To consolidate institutions for economic and social planning • To promote State modernization • Diversification of thematic coverage of training programmes • Budgetary and public investment policies • Regional and local development • New topics subject to demand from member countries (the care economy, environmental and natural resource management, social protection systems) • Innovations (on-line courses and virtual networks)

29. Statistics and economic projections • Improving the coverage, quality and dissemination of economic, social, demographic, environmental and subsidiary account statistics • Providing support to statistical systems in the region to enable them to adopt new international standards: national accounts, statistics and indicators • Harmonizing statistical information: gradual convergence towards the goal of regional excellence by sharing experiences and best practices • Monitoring advances towards the fulfilment of the Millennium Development Goals • Development and update of statistical methodologies (poverty measurement, price comparability, etc.)

30. SUBREGIONAL ACTIVITIES IN MEXICO AND CENTRAL AMERICA SUBREGIONAL ACTIVITIES IN THE CARIBBEAN 4 NATIONAL OFFICES 1 LIAISON OFFICE 12 INTEGRATED SUBPROGRAMMES SUBREGIONAL FOCUS

31. Activities for Mexico, Central America, Cuba, Dominican Republic and Haiti • Perfecting the international integration model, support for the subregional integration process and other integration agreements • Fostering export development strategies and production linkages with greater value added • Increasing job creation and improving job quality • Analysis of migration flows and the impact of remittances • Sustainable energy management, adapting to, and mitigating the effects of, climate change • Coordinating assessments of the socio-economic impact of natural disasters and reducing vulnerability

32. ActivitiesfortheCaribbean • Consolidating subregional integration processes and the common development agenda (CARICOM – Caribbean Single Market and Economy) • Supporting the implementation of the programme of action for small-island developing States and the follow-up of the Mauritius Strategy (Regional Coordinating Mechanism) • Enhancing economic, social and environmental statistics and Millennium Development Goals follow-up indicators The subregional issues derive also from the specialized subprogrammes at ECLAC headquarters

33. CONTENTS • Regional assessment 2003-2008 and challenges to development in Latin America and the Caribbean • Priorities for ECLAC in the future • Strategy and working modalities • Discussion on the draft programme of work 2010-2011

34. COUNTERPARTS AND BENEFICIARIES • National counterparts: • Ministries, sectoral agencies and central banks • Subnational and local institutions • Academic centres and universities • International counterparts: • International organizations and cooperation agencies • Regional and subregional organizations • Users • Public policymakers and Government officials • Sectoral programme managers • Private sector • NGOs and civil society • Beneficiaries: Latin American and Caribbean countries

35. EXPECTED OUTCOMES OF THE COMMISSION’S WORK • Greater awareness and understanding in ECLAC Member States of the key and emerging issues that affect their development • Strengthened capacity of counterparts in the countries of the region to formulate, implement, monitor and evaluate policies and instruments that contribute to development • Greater coordination, sharing of experiences and best practices among member countries on development issues • Progress of countries in the region in the follow-up and implementation of international plans of action emanating from the main intergovernmental conferences, summits and declarations

36. ECLAC ACTIVITIES • Intergovernmental forum for regional multisectoral dialogue • Applied research and analysis of options for the formulation of development policies (with a multidimensional and integrated vision) • Provision of technical assistance and cooperation geared to public policies • Training courses and workshops for building technical knowledge

37. ECLAC ACTIVITIES (continued) • Reliable source of comparable statistics and indicators • Integrated follow-up to world summits on economic and social issues and monitoring advances towards fulfilment of plans of action and the agreed development goals • Development of knowledge networks and sharing of experiences and best practices • Coordination of inter-agency studies conducted by United Nations organizations in the region

38. WORKING MODALITIES • Results-based management • Ensuring transparency • Optimizing efficiency, synergies in the use of resources, the impact of sustainability • Facilitating accountability (strengthening monitoring and evaluation) • Coordination with the rest of the United Nations system represented in the region (“Delivering as One”) • Building partnerships with international cooperation institutions • Support for ECLAC member countries

39. THANK YOU

40. DISCUSSION ON DRAFT PROGRAMME OF WORK OF ECLAC 2010-2011