Latin America Advisor 2022-03-01 – Inter-American Dialogue

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

March 1, 2022

Should Colombia Expand Its Social Support Programs?

At the beginning of the Covid-19 pandemic, Colombia established the Ingreso Solidario, or Solidarity Income cash transfer program, but the program is set to expire this year. Program participants are pictured. // File Photo: Colombian Government.

Q

Colombia’s economy grew 10.6 percent in 2021, the National Administrative Department of Statistics (DANE) said Feb. 15. The figure puts Colombia among only a handful of countries in the world to grow above 10 percent last year. However, in a report released on Feb. 10, the Organization for Economic Cooperation and Development (OECD) said Colombia still needs to expand social protections, improve the sustainability of public finances and boost productivity in order to increase growth, lower poverty and improve opportunity. The Paris-based group said programs providing universal basic pensions and a guaranteed minimum income should be expanded. What has been Colombia’s track record with such programs? How likely are the guaranteed minimum incomes put in place during the pandemic to be maintained or expanded? What are the benefits and drawbacks, and what do Colombian policymakers need to consider when addressing the OECD’s recommendations?

A

César Arias, director of public credit and national treasury at Colombia’s Ministry of Finance: “Colombia is experiencing the strongest economic recovery on record, leading to significant improvements in labor markets and public finances. Growth accelerated 10.6 percent last year and is expected to reach 5 percent this year, making Colombia one of the fastest-growing economies among emerging markets. Capitalizing on this broad improvement, the country has recovered 80 percent of the 5.8 million jobs lost during the peak of the pandemic. It has also outperformed budget deficit reduction targets by annual average of 1.2 percent of GDP in 2021-2022 and placed the public debt burden on a sustained declining trajectory to 63 percent of GDP in 2022 from 65 percent in 2020, three years earlier than expected. Sustaining growth above potential beyond 2023 is the key to…”

Top News

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Bank of Nova Scotia announced Monday that it is paying 1.3 billion Canadian dollars ($1.03 billion) to acquire almost complete ownership of its unit in Chile.

Honduras to Cancel Mining Permits, Ban Open-Pit Projects

The government of Honduran President Xiomara Castro announced Monday that it would cancel environmental permits for mining projects and also ban open-pit mining.

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ABOUT THE LATIN AMERICA ADVISOR

The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
Adtalem Global Education

Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

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