The CAF attributes the economic backwardness in Latin America to its low productivity

The low productivity experienced by Latin America in all sectors is responsible for the regional economic development is lagging behind what happens in the United States, Europe or Asia, said today in Bogot√° the expert Pablo Sanguinetti.

When presenting the Report of Economy and Development (RED 2018), the Vice President of Knowledge of the Development Bank of Latin America-CAF stated that "the problem of productivity is transversal, since in all sectors there is a considerable lag with respect to to the leading countries. "

This is partly due, he said, "to a significant degree of productive informality that is present in most sectors."

The document also details that another cause of the current situation in Latin America is the problems of productivity within the formal segment linked to an inefficiency in the allocation of resources between companies and, especially, to the relatively low performance of them.

Therefore, according to the study, the challenges to improve are not focused on what, but how.

"To improve, it is very important to increase the capabilities of the competition defense agencies, reduce entry barriers to companies and deepen trade and international integration that are still limited by para-tariff and logistical barriers," Sanguinetti explained.

Also, access to inputs, quality and variety are necessary for companies to achieve high levels of productivity and improve their ability to innovate.

Finally, the CAF clarified that in order to make the leap in productivity, it is necessary to adapt the institutional framework that translates into a better productive environment that encourages more innovation, efficiency in the allocation of resources and greater productive integration.

"This institutional change is complex and demands important political consensus that is not always easy to reach, so through the 2018 NETWORK the CAF intends to contribute knowledge on which initiatives are most useful to build bridges and advance on the path of achieving greater development. in the countries of the region, "said the expert.


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