Latin American Economic Outlook 2012

Even in the midst of a global financial crisis, Latin American and Caribbean
economies find themselves in better condition than in years past. Latin
America must seize this opportunity to design and implement good public
policies. The greatest of the long-term objectives of Latin American states
remains development: economic growth and structural change that is rapid,
sustainable and inclusive. In particular, governments must reduce inequalities
in income, public-service delivery and opportunities, as well as promote the
diversification of economies, often concentrated on a few primary-product
exports.

Improved efficiency of public administration is crucial to address both the
short-term and long-term dimensions of these challenges. The real change,
however, will come if Latin American and Caribbean states carry out meaningful
fiscal reforms, making them not only more efficient but also more effective.
The increased effectiveness of fiscal policy holds the promise to provide
resources needed to address the key challenges of economic development. Three
key priority areas for investing additional resources have been highlighted by
many governments in the region for their potential to raise competitiveness
and social inclusion: education, infrastructure and innovation. In each of
these areas, more efficient administration and more effective strategic action
is needed from states.