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Wednesday, July 23, 2025

ECLAC ex­ec­u­tive sec­re­tary:Re­gion to face more in­come in­equal­i­ty

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1774 days ago
20200912
Alicia Bárcena

Alicia Bárcena

ky­ron.reg­is@guardian.co.tt

Ali­cia Bárce­na, the ex­ec­u­tive sec­re­tary of the Unit­ed Na­tion’s (UN) Eco­nom­ic Com­mis­sion for Eco­nom­ic De­vel­op­ment for Latin Amer­i­ca and the Caribbean (ECLAC) has re­vealed that the COVID-19 in­duced con­trac­tion of the re­gion will per­pet­u­ate greater in­come in­equal­i­ty and plunge more peo­ple in­to pover­ty.

Speak­ing at the 24th An­nu­al CAF (De­vel­op­ment Bank of Latin Amer­i­ca) Con­fer­ence, Bárce­na said this is one of the “harsh re­al­i­ties that we must talk about to re­con­struct.”

She con­tin­ued to note that the re­gion will un­der­go the worst eco­nom­ic con­trac­tion in 100 years, “ex­ports will fall to -23 per cent and 44 mil­lion will be un­em­ployed.”

Ac­cord­ing to Bárce­na, pover­ty will end up af­fect­ing 230 mil­lion peo­ple, which is 45 mil­lion more than the cur­rent fig­ure. She added that “96 mil­lion peo­ple will be in ex­treme pover­ty in to­tal - many of these are women”.

More­over, Bárce­na some 33 mil­lion peo­ple will slide in­to pover­ty from the mid­dle stra­ta, to the point where eight out of every 10 per­son in the re­gion (490 mil­lion) are go­ing to need a ba­sic in­come and uni­ver­sal poli­cies. She al­so as­sert­ed that in­equal­i­ty would reach five per cent.

In ad­di­tion, Bárce­na said that 2.7 mil­lion Mi­cro, Small and Medi­um-sized En­ter­pris­es (MSMEs) will close. She al­so dis­closed that 40 mil­lion house­holds are not con­nect­ed to nor do they have ac­cess to good qual­i­ty In­ter­net, while 32 mil­lion chil­dren and ado­les­cents can­not par­tic­i­pate in dis­tance learn­ing.

Bárce­na em­pha­sised that the pan­dem­ic has re­vealed the fragili­ty of glob­al­i­sa­tion and mul­ti­lat­er­al­ism. She said that this is a sys­temic cri­sis af­fect­ing both sup­ply and de­mand, which has shown the ur­gency of seek­ing a new de­vel­op­ment par­a­digm based on the premise of a big push for eco­nom­ic, so­cial and en­vi­ron­men­tal sus­tain­abil­i­ty.

The ECLAC Ex­ec­u­tive Sec­re­tary said that the re­gion needs pro­gres­sive struc­tur­al change.

She posit­ed: “Rather than talk­ing about re­build­ing, we must talk about trans­for­ma­tion, to el­e­vate pro­duc­tiv­i­ty, with in­no­va­tion, but with equal­i­ty and sus­tain­abil­i­ty at the cen­tre.”

It is pos­si­ble in this cur­rent era, Bárce­na stat­ed, to talk se­ri­ous­ly about a ba­sic in­come, the cen­tral role of the State, the im­por­tance of a po­lit­i­cal, so­cial and eco­nom­ic com­pact at a na­tion­al as well as re­gion­al and glob­al lev­el, and about a fair, in­clu­sive and pro­gres­sive so­cial con­tract.

She high­light­ed the im­por­tance of pro­mot­ing a so­cial and rep­re­sen­ta­tive State - one that does not favour the elite. Bárce­na added that Latin Amer­i­ca and the Caribbean “is tired of the cul­ture of priv­i­lege”, which means that it must move to­wards a cul­ture of equal­i­ty.

Ac­cord­ing to Bárce­na: “There must al­so be ac­count­abil­i­ty to keep us from emerg­ing from this cri­sis more in­debt­ed, poor­er, hun­gri­er and an­gri­er, and that so­cial anger must be chan­neled through a rep­re­sen­ta­tive State that brings all of so­ci­ety to­geth­er in a broad di­a­logue,” she in­di­cat­ed.

She high­light­ed that ECLAC has pro­posed var­i­ous mea­sures to stim­u­late de­mand, based on a cam­paign for the en­vi­ron­ment and sus­tain­abil­i­ty, with dig­i­tal in­fra­struc­ture, greater in­vest­ment in health.

The re­gion­al com­mis­sion al­so pro­posed a ba­sic dig­i­tal bas­ket at an av­er­age cost of one per cent of GDP, and pro­vid­ing sub­si­dies and longer re­pay­ment pe­ri­ods and grace pe­ri­ods for loans to MSMEs, as well as im­ple­ment­ing re­dis­trib­u­tive poli­cies to move to­wards uni­ver­sal so­cial pro­tec­tion, above all with re­gard to health.

For this to oc­cur, she con­tend­ed that the re­gion needs a much more pro­gres­sive and ef­fec­tive tax­a­tion sys­tem that elim­i­nates tax eva­sion(which amounts to 6.1 per cent per cent of GDP).

The se­nior Unit­ed Na­tions rep­re­sen­ta­tive un­der­lined that the gov­ern­ments of Latin Amer­i­ca and the Caribbean would not be able to sus­tain the fis­cal out­lays that are need­ed to­day, thus in­ter­na­tion­al co-op­er­a­tion and mul­ti­lat­er­al agree­ments are need­ed to pro­vide so­ci­ety with “glob­al goods such as health, peace, fi­nan­cial sta­bil­i­ty, cli­mate se­cu­ri­ty and equal­i­ty.”


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