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Explore key facts and consensus points on poverty reduction in Latin America, including the role of education, social expenditures, and local capacity building. Discuss the effects of trade liberalization and the potential of scaling up microfinance programs to help the poor.
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Latin America: New Strategies, Actions and Ways Forward Jose Graziano Da Silva
Key Facts • Since 1990s, Latin America can be broadly characterized by: • Modest economic growth rates (picking up recently) • Macroeconomic Stability • Trade Liberalization and Opening • Movement towards democracy, and… • Persisently high inequality
Consensus points on poverty reduction • Growth has been necessary for poverty reduction throughout the region • Increased social expenditures generally good for poverty reduction • For medium income level countries, increase in quality of government services as well • Education, health, infrastructure (telephone, electricity)
Consensus Points of Future of Poverty Reduction • Education has a key role • Improving Quality instead of Quantity • Quantity expansion already occurred in medium level countries • More targeting of social expenditures towards children’s programs important to avoid future intergenerational income transmission
Further Consensus • Increased Local Capacity to implement local programs/policies • Intersectoral public spaces for simulating social participation • Need for more monitoring and evaluation of programs
Points for further discussion • What was or is the role of land reform? • Trade liberalization had different effects on different economies • Microfinance- how to scale up these programs to assist the poor?