1. 1 PRESENTATIONS BY THE PARTNER INSTITUTIONS OF THE JOINT SUMMIT WORKING GROUP – JSWG INTER-AMERICAN DEVELOPMENT BANK (Promoting Human Prosperity: Progress, Challenges and Future Priorities) SUMMIT IMPLEMENTATION REVIEW GROUP (SIRG)OEA/Ser.E Third Regular Meeting of 2008 GRIC/O.3/Inf.3/08 September 18-19, 2008 18 September 2008 Bridgetown, Barbados Original: English (Hilton Barbados Hotel)

2. 2 Promoting Human Prosperity: Progress, Challenges and Future Priorities Ian Ho-A-Shu, Social Development Specialist (HQ) Social Protection and Health Division Inter-American Development Bank

3. 3 The Presentation Poverty trends in LAC. Key challenges and priority areas.Poverty trends in LAC. Key challenges and priority areas. Education and Health trends in LAC. Key challenges and priority areasEducation and Health trends in LAC. Key challenges and priority areas Labor market trends in LAC. Key challenges and priority areas.Labor market trends in LAC. Key challenges and priority areas. Closing commentsClosing comments

4. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 4 Poverty rates and the number of poor people have declined dramatically worldwide Poverty Rates (%) 0 5 10 15 20 25 30 35 40 45 1970198019901998 2 US/day 1 US/day Number of Poor People (millions) 0 200 400 600 800 1000 1200 1400 1600 1970198019901998 2 US/day 1 US/day Source: Sala-i-Martin, NBER Working Paper 8933

5. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 5 …but not so in Latin America Poverty Rates 2US/day 0 5 10 15 20 25 30 35 40 45 1970198019901998 Source: Sala-i-Martin, NBER Working Paper 8933 World Latin America

6. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 6 Current poverty rates are not much lower than in 1980

7. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 7 This partly reflects low growth rates

8. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 8 …and income concentration 30.6 31.8 34.5 40.8 44.7 44.1 49.5 52.8 54.6 57.6 58.0 58.6 010203040506070 Pakistan Bangladesh Poland United States China Venezuela Mexico Argentina Peru Chile Brazil Colombia Gini Coefficient, 2000 or latest year available Source: World Bank (2006).

9. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 9 Non-income aspects of development have improved slowly a Medians Note:Latin America and the Caribbean corresponds to the 26 countries members of the IDB. Source: UNDP (2006). Humand Development Report. Human Development Index (0 – 1 Scale) 0.76 0.71 0.67 0.74 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1975198519952004 LACDevelopedAfrica East Asia Rest of Asia Eastern Europe Middle East

10. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 10 …but FPI in LAC may further impact poverty and human development

11. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 11 Strategic Priorities in Poverty reduction Increase equity and coverage in Social Protection Systems (SPS)Increase equity and coverage in Social Protection Systems (SPS) Increase effectiveness of SPS: reduce program fragmentation and duplications, reduce administrative costs, increase accountability.Increase effectiveness of SPS: reduce program fragmentation and duplications, reduce administrative costs, increase accountability. Continue efforts to mainstream monitoring, evaluation and in general the measurement of the effectiveness, impact and sustainability of social policies and programs.Continue efforts to mainstream monitoring, evaluation and in general the measurement of the effectiveness, impact and sustainability of social policies and programs. Promote demand of health, nutrition and education services through information and incentives. (Conditional Cash Transfer programs)Promote demand of health, nutrition and education services through information and incentives. (Conditional Cash Transfer programs) In short: Strengthen Social Safety Nets, and in particular, Conditional Cash Transfer Programs in the Region.In short: Strengthen Social Safety Nets, and in particular, Conditional Cash Transfer Programs in the Region.

12. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 12 Conditional Cash Transfer programs

13. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 13 Education Accomplishment: Access Education systems through LAC have almost all primary age students attending school Net Enrollment Rate for Primary Education

14. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 14 Education Challenges: Quality Cognitive level of students lags behind that observed in countries at similar levels of income per capita PISA 2006 results on science and level of income Argentina Source: OECD PISA 2006

15. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 15 Education Challenges: Equity Significant income-related inequality in access, learning and overall educational results Primary completion rates: Share of youths 15-24 years with a primary school degree Source: Houselhold Surveys 2002-2006, SEDLAC

16. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 16TertiarySecondaryPrimaryPreschool Education Priority Areas Quality of Teachers School to Work Transition Readiness to Learn IDB EDUCATION

17. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 17 Health has had outstanding improvements Life Expectancy* 55 62 71 0 10 20 30 40 50 60 70 80 1950s1970-752000-05 * Averages Source: UNDP (various years). Human Development Report. LACDevelopedAfrica East Asia Rest of Asia Eastern Europe Middle East

18. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 18 …and infant mortality is converging fast to OECD levels Infant Mortality (Per 1000 live births) 0 20 40 60 80 100 120 140 1970198019902004 Source: UNDP (various years). Human Development Report. LACDevelopedAfrica East Asia Rest of Asia Eastern Europe Middle East

19. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 19 Burden of disease by clusters of causes in LAC (2002) 1.Infectious diseases, maternal and birth related causes, acute malnutrition 2.Chronic diseases 3.External Causes and Violence …nevertheless, new challenges emerge…

20. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 20 Strategic priorities in health Supporting the establishment of national health priorities, linked with epidemiological profile and needs of the poor and excludedSupporting the establishment of national health priorities, linked with epidemiological profile and needs of the poor and excluded Strengthening the supervisory and regulatory role of the Health MinistriesStrengthening the supervisory and regulatory role of the Health Ministries Separating financing and service delivery functionsSeparating financing and service delivery functions Improving the effectiveness of the services through primary health careImproving the effectiveness of the services through primary health care Regional initiatives: nutritional, epidemiological surveillance, prevention of HIV/AIDS in mobile populations, drugs management and procurement, national health accounts etc.Regional initiatives: nutritional, epidemiological surveillance, prevention of HIV/AIDS in mobile populations, drugs management and procurement, national health accounts etc. Malnutrition: Chronic undernutrition affects 8.8 million children under 5, particularly in Central America and Andean countriesMalnutrition: Chronic undernutrition affects 8.8 million children under 5, particularly in Central America and Andean countries

21. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 21 Labor markets in LAC in recent years show reason for cautious optimism…

22. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 22 Unemployment, low wages, and employment instability are the main labor problems in Latin America. Most important problem in your country 0%5%10%15%20%25% Discriminación racial Medio ambiente Transporte Problemas de vivienda Tráfico de drogas Problemas de salud Violaciones derechos humanoa Consumo de drogas Falta de oportunidades para jóvenes Inflación Baja calidad en la educación Terrorismo/ violencia política Bajos salarios Inestabilidad laboral Delincuencia /Insecuridad Pobreza Corrupción Desempleo De: Latinobarometro, IPES, BID

23. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 23 Strategic Priorities Accelerate the creation of decent jobs and improve growth rates in the region How? Increasing the efficiency with which workers are matched to jobs Ease reallocation through effective Labor Intermediation Systems. Adequately insuring workers against the risks of high job rotation Provide feasible and adequate income protection that do not penalize work/production. Enhancing the opportunities of workers by increasing their skills. Training systems and emphasis on basic education Improve the labor administration capacity to register, enforce and evaluate labor laws and regulations

24. Poverty: Progress, Challenges, Strategic Priorities Education and Health: Progress, Challenges, Strategic Priorities Labor markets: Progress, Challenges, Strategic Priorities Final Comments 24 Thank you www.iadb.org