sustainable development 20 years on from the ... - JosÃ© Eli da Veiga

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59 fluctuations of the exchange rate naturally constitute a disincentive to developing new comparative advantages and adding value to traditional natural resources exports (ECLAC, <strong>20</strong>10a). These factors —growth, investment and the exchange rate, among others— influence and are influenced by the particular production structure in each country. 2. Production structure and productivity In terms of productivity, two traits distinguish the Latin American and Caribbean region from developed economies. The first is the external gap, which reflects asymmetries in the region’s technological capabilities with respect to the international frontier: the developed economies innovate and spread technology through their productive fabric faster than the Latin American and Caribbean countries are capable of absorbing, imitating, adapting and innovating in turn on the basis of international best practices. A comparison between the productivity levels of the countries of the region and those of the United States illustrates the magnitude of the challenge of technological convergence (see figure I.17). The productivity gap has been widening since the 1980s and the region shows a particularly sharp fall in relative productivity as of <strong>20</strong>01, whereas the United States was much quicker to incorporate changes based on increasing incorporation of ICTs (Oliner, Sichel and Stiroh, <strong>20</strong>07). Figure I.17 RELATIVE PRODUCTIVITY INDEX OF LATIN AMERICA (SELECTED COUNTRIES) AND PRODUCTIVITY IN THE UNITED STATES (Index: 1970=100 and constant dollars at 1985 prices) 1<strong>20</strong> 160 000 100 140 000 Index of relative productivity in Latin America 80 60 40 1<strong>20</strong> 000 100 000 80 000 60 000 40 000 Productivity in the United States <strong>20</strong> <strong>20</strong> 000 - 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 <strong>20</strong>00 <strong>20</strong>02 <strong>20</strong>04 <strong>20</strong>06 - Index of relative productivity in Latin America Productivity in the United States Source: Economic Commission for Latin America and the Caribbean (ECLAC), Time for equality: closing gaps, opening trails (LC/G.2432(SES.33/3)), Santiago, Chile, <strong>20</strong>10.
60 The second productivity feature distinguishing the Latin American and Caribbean from the developed economies is the internal gap, which refers to productivity differences between and within different sectors. Again, the experience in the United States serves as a comparison. The structural transformation of the past few decades increased productivity throughout the United States economy. Conversely, Latin America witnessed no structural shift towards knowledge-intensive manufacturing sectors between 1990 and <strong>20</strong>07. In Latin America, both in 1990 and <strong>20</strong>07 the highest-productivity sectors and those that added the most manufacturing value were natural-resource-intensive (ECLAC, <strong>20</strong>10a). The productive structure post-<strong>20</strong>03 is qualitatively different from that of earlier decades, with import coefficients rising faster than export coefficients in the manufacturing sector. Although in several countries of the region technology-intensive sectors have grown faster than other branches of industry, they have not recovered the relative weight they had in previous periods. In addition, spending on research and <strong>development</strong> and other public policy efforts essential for leveraging <strong>development</strong> had already weakened and the public sector’s institutional capacities for developing manufacturing had atrophied before <strong>20</strong>03. In some cases, industrial policy had been abandoned altogether (Katz and Stumpo, <strong>20</strong>01). The sharper increase in import than in export coefficients in manufacturing underscores the difficulty of the industrial productive apparatus in competing in most sectors. As a result of this weakness and given the sustained increase in domestic demand, industrial trade balances are either running higher deficits or posting waning surpluses. The trade balance deterioration has been offset in recent <strong>years</strong> by high prices for the region’s agricultural and mining exports, heightening the economies’ specialization in the export of primary goods and increasing pressure on natural resources and land-use changes which threaten forest cover and biodiversity (ECLAC,<strong>20</strong>10a). The expansion of natural-resource-intensive sectors has few positive effects on overall technological capabilities. These sectors undoubtedly adopt technology, but mainly imported technology, and their lack of an endogenous capacity to innovate minimizes the catalytic role of learning. These sectors are, moreover, characterized by continuous-production processes which, by definition, are more difficult to break down into discrete spatial and temporal phases. Hence, they offer far fewer opportunities for generating subcontracting linkages with other firms and therefore for transferring know-how and technology to other activities and enterprises (for example, to SMEs). Natural-resource-intensive sectors also have less capacity to generate backward and forward linkages, owing to the “technological strangeness” between existing activity and the new activities that are to be generated. Patterns of research and <strong>development</strong> are a key factor in this scenario. But not even the most advanced countries of the region have reached the level of investment in relation to GDP of European countries, Japan or the United States (see chapter V). It is clear that technological change in Latin American industries has been limited and inadequate in light of the challenges posed by a production structure that is more open and more integrated into international trade and by the objective of achieving <strong>sustainable</strong> and inclusive <strong>development</strong>. The situation may become even more difficult in an international context in which, for several <strong>years</strong>, technologies and production processes have been changing in response to increased ICT use in production processes. Yet the expansion of the global economy has opened up opportunities. Inasmuch as external conditions are more favourable than they were in previous decades, the countries of the region which export primary goods should be able to tap the revenues from higher international prices to boost policies on learning and investment in research and <strong>development</strong>.
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SUSTAINABLE DEVELOPMENT 20<
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Alicia Bárcena Executive Secretary
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4 8. Protection of fishery resource
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6 Table II.1 Ratification of multil
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Page 18 and 19: 17 Box 2 (concluded) 24 Warfare is
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Page 22 and 23: 21 The dynamic on which these data
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110 Figure II.7 PER CAPITA CO 2 EMI
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112 Figure II.10 CARBON INTENSITY O
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114 Table II.4 LATIN AMERICA AND TH
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116 coast and in marine areas, the
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118 Box II.4 CENTRAL AMERICA: BIODI
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120 25 Figure II.1
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122 The valuable assets related to
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124 monitoring have been instrument
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126 Box II.7 LATIN AMERICA AND THE
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128 technology transfer is successf
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130 Table II.6 AGRICULTURAL PRODUCT
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132 (a) Integrated water resources
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134 concessions, authorizations and
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136 water flows caused by land-use
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138 Climate change will exacerbate
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140 With regard to the safe recover
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142 MERCOSUR countries are implemen
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144 Unlike in the early 1990s, all
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146 Bibliography Acquatella, J. (<s
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148 Li, J. and M. Colombier (<stron
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150 WHO (World Health Organization)
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152 1. Statistics and indicators Si
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154 3. Technology and environmental
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156 2. Citizen participation in env
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158 Reforms that would improve acce
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160 (b) Land ownership Land rights
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162 Box III.3 LATIN AMERICA AND THE
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164 Box III.4 LATIN AMERICA AND THE
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166 Many countries have created ins
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168 Since 1992, municipalities in L
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170 requirements of legislation; 14
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172 8. The science and technology c
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174 9. Farmers Rural households, in
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176 Bibliography Acuña, G. (<stron
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178 Tréllez, E. (20</stron
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180 A. IMPLEMENTATION OF INTERNATIO
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182 strategies, develop mechanisms
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184 participatory process; and nati
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186 issues, which have been incorpo
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188 Furthermore, at the internation
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190 4. Freshwater resources, water
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192 With respect to coastal and mar
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194 Further to the issues identifie
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196 (2006), Challe
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198 (2010b), Towar
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200 As for financi
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202 This assistanc
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204 Regions Table
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206 In addition to
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208 Figure V.5 LAT
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210 Innovative financing mechanisms
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212 8.8 Agricultural support estima
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214 2. Agricultural subsidies Most
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216 (18.9%). 11 Fishery subsidies h
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218 Figure V.9 LATIN AMERICA AND TH
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220 1. Science and
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222 Figure V.10 LATIN AMERICA AND T
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224 2. Scientific capacities and te
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226 4. Knowledge plurality Rural po
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228 IDB (Inter-American Development
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231 Chapter VI GUIDELINES FOR ACHIE
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233 B. GUIDELINES FOR THE INTEGRATI
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235 (b) Strengthen policies designe
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237 from these sectors could suffer
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239 (f) Send proper signals to esse
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241 The following actions are sugge
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243 As part of the preparatory proc
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245 Indicators can help to raise aw
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247 All of these initiatives seek t
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249 (a) Reform curricula to include
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251 (ii) Support initiatives to for
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253 (b) For Latin America and the C
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255 initiatives, are intended to no
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This report describes the progress
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