Despite its status of middle-income country in terms of GDP, Panama still remains a society of sharp contrasts. The robust economic growth of today is a historic opportunity for progress in reducing poverty and inequality.
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New analysis highlights need for better coordination and a focus on behavioral barriers alongside effective social and economic policies.LIMA, Peru, March 9, 2015 – One out of every five Latin America... Show More +ns or around 130 million people have never known anything but poverty, subsisting on less than US$4-a-day throughout their lives. These are the region´s chronically poor, who have remained so despite unprecedented inroads against poverty in Latin America and the Caribbean since the turn of the century.Their situation is becoming more precarious as the economic boom that significantly contributed to reduce poverty dwindles. Regional GDP growth has slowed, from about six percent in 2010 to an estimated 0.8 percent in 2014. This contraction will likely take away one of the biggest drivers behind the strong reduction in poverty: an improved job market.A new World Bank report, Left Behind, Chronic Poverty in Latin America and the Caribbean, takes a closer look at the region’s entrenched poor, who and where they are, and how policies and thinking will need to change in order to more effectively assist them.“Poverty exists and persists due to constraints within and without the households, everything from lack of appropriate skills and motivation to the lack of basic services such as clean water,” said Jorge Familiar, World Bank Vice President for Latin America and the Caribbean. “In other words, supporting individuals is necessary but not sufficient. An enabling context that provides appropriate services is also crucial. Therefore, social policies and regional development need to go hand in hand.”But who are the chronic poor? The answer to that question traditionally has been hard to come by due to the lack of data tracking the poor over time. The World Bank report, however, applies a new methodology to shed light on those who have remained poor in Latin America.Among the report’s key findings:· There are significant variations among countries. Uruguay, Argentina and Chile have the lowest rates of chronic poverty, with rates around 10 percent. On the other extreme, Nicaragua, Honduras, and Guatemala have rates of chronic poverty significantly higher than the regional average of 21 percent, ranging from 37 percent in Nicaragua to 50 percent in Guatemala.· There are significant variations within countries. Within a single country, some regions show incidence rates up to eight times higher than the lowest. In Brazil, for instance, Santa Catarina has a chronic poverty rate of about five percent, while Ceará is nearly 40 percent.· The issue is rural and urban. Despite the much higher percentage rates of chronic poverty in rural areas, such poverty is as much an urban as a rural issue. In fact, considering absolute numbers, urban areas in many countries, including Chile, Brazil, Mexico, Colombia and the Dominican Republic, had more chronic poor between 2004 and 2012 than rural areas.“In addition to focusing on access to basic services and good jobs, policies must also take into account the very real social and aspirational barriers facing the chronically poor in Latin America,” said Ana Revenga, Senior Director for Poverty at the World Bank Group. “If this remains unaddressed, it will be far too easy for the most vulnerable to fall through the cracks of social safety nets, no matter how well-targeted these programs are.”In Peru, for instance, patients with tuberculosis, who live largely in Lima’s slums, were 43 percent more likely to abandon treatment before being cured if they were depressed at the time of diagnosis.To better assist these patients, a program that provides free treatment also offered clinical psychologists to help treat depression and special support to help identify income-generating opportunities for patients. Other social intermediation programs, such as Chile Solidario, or Red Unidos in Colombia, employ social workers to actively match beneficiaries with social programs that address family-specific needs.Moving forward, policymakers in Latin America would be justified to rethink the approach of poverty reduction programs, using this new analysis to better understand who the chronically poor are and where they reside. It will be crucial to improve coordination between different social and economic programs, and to tackle the mental and emotional toll that poverty takes on the poor and their ability to improve their lives. Only then will it be possible to forge a clearer path out of poverty for the 130 million chronically poor in Latin America. Show Less -
WASHINGTON, February 10, 2015 - The World Bank’s Board of Executive Directors approved a US$9.59 million grant from the Global Environment Facility (GEF), aimed at preserving biodiversity in about 554... Show More +,000 hectares of the Atlantic and central-eastern regions of Panama. The GEF grant will complement funding from the Government, municipalities and private sector to improve the management effectiveness of protected areas and improve the livelihoods of 48,450 Panamanians in rural and indigenous communities.The Sustainable Production Systems and Conservation of Biodiversity Project, to be implemented by the National Environment Authority of Panama (ANAM) over five years, will advance safeguarding efforts in seven provinces, two indigenous people’s regions (“comarcas”) and two indigenous people’s territories. It will seek to preserve the resilience of regional ecosystems, and encourage sustainable harvesting and biodiversity-friendly practices among farmers and small producers.“Panama, the Global Environment Facility and the World Bank have worked together to conserve the biodiversity of the Atlantic Mesoamerican Biological Corridor in Panama while improving the productivity of rural, indigenous and extremely poor communities since 1998,” said Dulcidio De La Guardia, Minister of Economy and Finance of Panama. “The new Project will further advance these conservation efforts and will involve not only the beneficiaries, but also local governments, organizations and networks, with transfer of environmental knowledge and new opportunities for income,” De La Guardia said.The US$29 million Project will be funded by the US$9.59 million grant from GEF; US$10.16 million from the Government of Panama; US$8.5 million from two private sector companies (US$2.5 million from AES-Changuinola and US$6 million from Minera Panama, through existing concession agreements with ANAM); US$90,000 from local municipalities and US$630,000 from local beneficiaries.“Preserving biodiversity is important at the global level, but biodiversity is also a significant local source of food, protection, health, recreation, and economic activities. So any negative impact on biodiversity is not only critical for natural species, but also for the people who live near the protected areas,” said Anabela Abreu, World Bank country manager for Panama. “The World Bank is committed to support the country’s efforts to preserve the environment, improve its people’s livelihoods and provide opportunities for all,” Abreu said.The project’s key goals include:Improving the management effectiveness of protected areas with alliances for participatory management (concessions and co-management) and biodiversity monitoring, while assuring the financial sustainability of the conservation efforts.Scaling up biodiversity-friendly production systems and increasing access for community-based organizations and small producers.Raising awareness about biodiversity-friendly products and the economic value of biodiversity; strengthening citizen engagement and capacities (including South-South exchanges), and the promotion of partnerships for the management of protected areas.Project activities will take place in the Bocas del Toro, Coclé, Colón, Chiriquí, Los Santos, Panama and Veraguas provinces; the Guna Yala and Ngäbe-Buglé comarcas; and the Bribri and Naso-Teribe territories, where a large number of the species of conservation concern are found.On the GEF and the World Bank GroupThe Global Environment Facility (GEF) is a partnership for international cooperation where 183 countries work together with international institutions, civil society organizations and the private sector, to address global environmental issues. Since 1991, when the World Bank Group helped to establish it, the GEF has provided $13.5 billion in grants and leveraged $65 billion in co-financing for 3,900 projects in 165 developing countries. For 23 years, developed and developing countries alike have provided these funds to support activities related to biodiversity, climate change, international waters, land degradation, and chemicals and waste in the context of development projects and programs. Show Less -
WASHINGTON, December 2, 2014 – As the planet warms further, heat-waves and other weather extremes that today occur once in hundreds of years, if ever, would become the “new climate normal,” creating a... Show More + world of increased risks and instability. The consequences for development in Latin America and the Caribbean would be severe as crop yields decline, water resources shift, sea-levels rise, and the livelihoods of millions of people are put at risk, according to the World Bank Group report Turn Down the Heat III: Confronting the New Climate Normal. The Latin American and the Caribbean Chapter of the global report was launched today in Washington, coinciding with the 20th Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC), in Lima, Peru. The regional report is an analysis of the impacts of present day (0.8°C), and likely future 2°C and 4°C warming above pre-industrial levels on agricultural production, water resources, ecosystem services, and coastal vulnerability across Latin-America and the Caribbean. It builds on a 2012 Bank global report, which concluded the world would warm by 4 degrees Celsius above pre-industrial levels by the end of this century if we did not take concerted action immediately. Climate change impacts such as extreme heat events may now be unavoidable because the Earth’s atmospheric system is locked into warming close to 1.5°C above pre-industrial levels by mid-century, the report says. Even very ambitious mitigation action taken today will not change this. “The report confirms what scientists have been saying – past emissions have set an unavoidable course to warming over the next two decades, which will affect the world’s poorest and most vulnerable people the most,” said Jim Yong Kim, President of the World Bank Group. “We’re already seeing record-breaking temperatures occurring more frequently, rainfall increasing in intensity in some places, and drought-prone regions becoming drier.” “These changes make it more difficult to reduce poverty and put in jeopardy the livelihoods of millions of people,” Kim said. “They also have serious consequences for development budgets, and for institutions like the World Bank Group, where our investments, support and advice must now also build resilience and help affected populations adapt.” In Latin America and the Caribbean, heat extremes and changing precipitation patterns will have adverse effects on agricultural productivity, hydrological regimes and biodiversity. In Brazil, without additional adaptation, crop yields could decrease by up to 70 percent for soybean and up to 50 percent for wheat at 2°C warming by 2050. Ocean acidification, sea level rise, tropical cyclones and temperature changes will impact coastal livelihoods, tourism, health, food and water security, particularly in the Caribbean. Melting glaciers would be a hazard for Andean cities. The economic effects, not to mention the human suffering, could be severe. By 2050, under a 4-degree scenario, coastal flooding could cause losses of about $22 billion in storm and infrastructure damages and tourism losses in the region.“This report makes it clear in a scientifically rigorous way why tackling climate change is so important for Latin America and the Caribbean,” said Jorge Familiar, Vice President of the World Bank for Latin America and the Caribbean, speaking at the launch in the Woodrow Wilson Center in Washington. “It helps us understand the challenges to the region and its development. Being aware of these challenges is a necessary first step to prepare and implement policy responses to avoid the most severe impacts from a changing climate.”The report, prepared for the World Bank Group by the Potsdam Institute for Climate Impact Research and Climate Analytics, reveals how rising global temperatures are increasingly threatening the health and livelihoods of the most vulnerable populations, crucially magnifying problems the region is struggling with today. Even below 2°C warming, most countries in LAC will need to implement significant adaptation interventions to achieve the goals of eradicating extreme poverty and boosting shared prosperity. “However, governments in the region are at the forefront when it comes to investing in adaptation to climate change and also setting policies that try to mitigate it, such as encouraging renewable energy use, which helps to reduce carbon emissions and to keep the world from reaching the 2-degree warmer threshold,” said Jorge Familiar. “Innovations such as climate-smart agriculture help Latin America and the Caribbean to manage the climate risks and ensure food security, advancing the region’s potential as a global ‘bread-basket’.” Contacts:In Washington: Mauro Azeredo, (202) 458-0359, firstname.lastname@example.org; For more information, please visit: www.worldbank.org/climate Visit us on Facebook: http://www.facebook.com/worldbankBe updated via Twitter: http://www.twitter.com/worldbankFor our YouTube channel: http://www.youtube.com/worldbank News Release2014/XXX/GCC 4 degrees Celsius = 7.2 degrees Fahrenheit Show Less -
Regional growth down to 1.2 percent this year, rebounding to 2.2 percent in 2015Average for the entire region understates growth in many smaller countriesEmployment and quality education for all, key ... Show More +to maintaining social gainsWASHINGTON, October 7, 2014 – During the recent commodity boom, Latin America and the Caribbean proved that growth could be pro-poor and help fuel tremendous social progress. Now as growth slows regionally and beyond, it is critical to consider what will shore up economic activity while ensuring the poor won't stay behind. In its latest semiannual report, Inequality in a Lower Growth Latin America, the World Bank´s Office of the Chief Economist for Latin America and the Caribbean forecasts an average 1.2 percent rate of growth for 2014 with a rebound to 2.2 percent in 2015. This deceleration comes with a difference.“In terms of equity, the simple fact that Latin America today is not the Latin America of the 1980s or 1990s, is already a good news story,” said Augusto de la Torre, World Bank Chief Economist for Latin America and the Caribbean. “For the first time in recent history, the region is no longer following a boom-bust cycle of the type that used to set the economy back for many years, hurting the poor the most.”The report, issued ahead of the IMF-World Bank Group annual meetings, finds a great deal of heterogeneity within the region. Panama leads with an impressive 6.6 percent growth for the year and Bolivia, Colombia, Dominican Republic, Ecuador, Guyana, Nicaragua, Paraguay, and Surinam are expected to grow more than 4 percent, well above the regional average. Meanwhile big economies such as Venezuela and Argentina are going into negative territory, at -2.9 and -1.5 percent respectively, and the regional giant, Brazil, is expected to growth by only 0.5 percent.With this level of growth, countries may find it challenging to keep the social gains from the last decade. During those golden years the region was able to cut extreme poverty by half to 12 percent in 2012, and double the ranks of the middle class to 34 percent of the population in 2012. That year, Gini index of income inequality was 7 points lower than in 2003, largely due to a narrowing of wage gaps in the region.Now in a more stable, albeit slower growth environment, governments in the region will understandably want to focus on maintaining the levels of employment that contributed to those equity gains and thus meet the expectations raised during the boom. Some countries in the region will have at their disposal the types of tools -- such as countercyclical monetary policy with flexible exchange rates as well as ample space to borrow -- that will help them maintain jobs without compromising the longer term priority of boosting productivity in order to grow more.“Other countries, however, with high levels of indebtedness or facing inflation pressures despite the slowdown, may find it more difficult to respond,” said de la Torre. “The temptation for these countries would be to take the path of least resistance, keeping aggregate consumption and government spending high and borrowing to finance the associated fiscal and external deficits. This path might be encouraged by highly liquid international markets seeking higher yields. The short-run gains, however, would carry a high price: lower long-run growth due to a more vulnerable balance of payments or an uncompetitive real exchange rate.”To maintain the path of pro-poor growth of the past decade, productivity oriented reforms need to be complemented by policies that increase the quality and coverage of education in line with growing demand for skilled labor. The report thus concludes that advances in the quality of primary, secondary, and tertiary education that benefit all Latin Americans will be crucial to ensure that the dividends of productivity gains are fairly distributed so that the prosperity is truly shared. Contacts:In Washington: Sergio Jellinek (202)458-2841, email@example.comMarcela Sánchez-Bender (202) 473-5863, firstname.lastname@example.org For more information, please visit: www.worldbank.org/lac Visit us on Facebook: http://www.facebook.com/worldbankBe updated via Twitter: http://www.twitter.com/BancoMundialLAC For our YouTube channel: http://www.youtube.com/worldbank Show Less -
New report dissects central role of teachers in raising student learningLIMA, July 24, 2014—Every week, public school students in Latin America and the Caribbean are deprived of the equivalent of one ... Show More +full day of class, according to a new World Bank report. The source: the low teacher effectiveness.Based on unprecedented research involving the observation of more than 15,000 classrooms in 3,000 primary and secondary schools in seven Latin American countries, the report, Great Teachers: How to Raise Student Learning in Latin America and the Caribbean, describes how teacher absenteeism, poor preparation, low skill level and pay, as well as weak school leadership, all serve to cheat students. The report is a powerful contribution to the growing body of research on how to improve the quality of instruction and learning results.The report comes as experts mull over just how Latin America will maintain levels of growth that made recent poverty and inequality reduction possible. Innovation, competitiveness, government reform, and education are typically cited as the requisite economic engines for further prosperity. Yet on the OECD’s Program for International Student Assessment (PISA) test in 2012, the 8 participating LAC countries were at the bottom of the scale for middle-income countries -- although a few countries, such as Chile, Brazil and Peru have made important gains from previous years.The report was launched on Thursday at the Regional Education Solutions Forum, held at the Catholic University in Lima and with the participation of Peru's First Lady, Nadine Heredia.In her speech, the First Lady noted that "in the case of Peru, we need to find a way to make our growth sustainable, and to do that investing in human capital will be essential as it is the way to develop more innovation capacity, technology, research and productivity.''Jorge Familiar, World Bank Vice President for Latin America and the Caribbean said that “it is hard to think of a more important element to broaden opportunities for all Latin Americans than a quality education," and he emphasized that "it is hard to think of a more significant player to raise educational quality than the region's teachers."For a region in need of enhancing student learning, this is a sign that much more needs to be done to recruit, groom and motivate great teachers. According to global research, students with the best teachers advance 1.5 grade levels or more per year, while those with the worst teachers master 0.5 year of curriculum or less. That research also shows clearly that the economic and social benefits of national education spending depends on what students’ learn – and not how many years they stay in school. If Mexico raised its average student performance on PISA to Germany’s level, its annual long term GDP growth could rise by 2 percentage points.The report sheds important light on who Latin America’s teachers are today:Their pay incentives are low. Their monthly salaries in 2010 were between 10 and 50 percent lower than salaries for other “equivalent” professionals and have been throughout the 2000s.They have more formal education than other professional and technical workers but start out academically weaker than the overall pool of higher education students. 75% are women.Students majoring in education are of lower socio-economic status and are more likely to be first-generation university students.The teaching force in the region is aging. The average teacher in some countries is more than 40 years old.While many countries in the region are producing an excess supply of new teachers, it is still difficult to find adequate teachers for secondary level mathematics, science, and high quality bi-lingual teachers (Spanish/indigenous language) in rural areas.“Virtually all countries in the region appear trapped in a low-level equilibrium of low standards for entry into teaching, relatively low and undifferentiated salaries, weak instruction in the classroom, and poor educational outcomes,” according to Barbara Bruns, the author of the report, “Moving to a high-level equilibrium will be difficult but it is an effort that the region can’t afford to postpone.”At a time of diminished public resources, the report makes a significant contribution in helping identify where priorities should be assigned. Among its striking findings is the fact that teachers in countries with the largest investment on “One Laptop per Child” initiatives actually spent the lowest share of total class time using information and communications technologies.Challenges ahead for the region are mixed. Over the next decade, the declining size of school-aged population in about half of the countries in the region, notably the Southern Cone, could make it substantially easier to raise teacher quality; in the other half of the region, especially Central America, the need for more teachers will make this harder to achieve.The report’s good news, however, is that most LAC countries are sharpening their focus on teacher quality. It distills the global research evidence and latest LAC experience with innovative programs and major reforms in three priority areas:Policies to recruit better teachers.Programs to groom or develop the skills of teachers already in service.Stronger incentives to motivate top performance, which will make the profession more attractive and selective over time.In analyzing the design and implementation of major teacher policy reforms in Chile, Peru, Ecuador and Mexico, the report chronicles the decisive role of teachers’ unions, the value of finding consensus solutions, and how to build the broad support of civil society that has underpinned successful and sustainable reforms.For more information, please visit: www.worldbank.org/lacVisit us on Facebook: http://www.facebook.com/worldbankBe updated via Twitter: http://www.twitter.com/WorldBankFor our YouTube channel: http://www.youtube.com/lacregion2010 Show Less -
Humberto Lopez served as WB Chief Economist for Central America between 2008 and 2011WASHINGTON, July 2, 2014 – The World Bank announced the appointment of J. Humberto Lopez as its Director for Centra... Show More +l America, effective yesterday. Lopez is a renowned expert in Central American socio-economic issues, having held other positions for the subregion within the institution."One of Humberto Lopez’ priorities will be to lead the Central American unit charged with providing comprehensive solutions aimed at reducing extreme poverty and providing shared prosperity in Central American countries, generating greater opportunities for all citizens, as well as contributing to the subregion’s integration,” said Jorge Familiar, World Bank Vice President for Latin America and the Caribbean.Lopez, a Spanish national, joined the World Bank in 1996 and has since worked in several positions in the Africa and Latin America and the Caribbean regions. He has also served in the Economic Policy and Poverty Reduction Management Unit and in the Office of the President of the World Bank Group.Until his new appointment, he was serving as Director of Economic Policy and Poverty Reduction for Latin America and the Caribbean.Lopez was the World Bank’s Chief Economist for Central America between 2008 and 2011 and is the co-author and/or editor of papers on Central American integration and trade agreements, economic growth, remittances, investment climate, poverty reduction, inequality and fiscal policy.The new World Bank Director for Central America holds a PhD in Economics from the European University Institute in Italy and a Master’s degree in Economics from Warwick University in the United Kingdom.In his new position, Lopez, who will be based out of Washington D.C.. He will be in charge of a unit that includes six Central American countries. Lopez replaces Carlos Felipe Jaramillo, who is now working as an advisor to the World Bank’s Managing Director, Sri Mulyani Indrawati.For more information on the World Bank’s work in Latin America and the Caribbean, please visit: www.worldbank.org/lacPlease visit the World Bank website for Central America: http://www.worldbank.org/en/region/lacVisit us on Facebook: http://www.facebook.com/worldbankBe updated via Twitter: http://www.twitter.com/WorldBankLACFor our YouTube channel: http://www.youtube.com/worldbank Show Less -