Social and Economic Compacts Are Required to Tackle Inequality in the Region

Paris, May 21, 2014.- At the opening yersterday in Paris of the II Europe-Latin America Economic Forum, the Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, underlined that the region needs "social and political compacts in society as a whole, as well as a new relationship between the State, the market and society, in order to strengthen institutions and achieve equality".

The forum, which is being organized by ECLAC, the Organisation for Economic Co-operation and Development (OECD) and the Paris School of Economics (PSE), with the support of the Governments of France and Germany (BMZ-GIZ), the EU-LAC Foundation and the Institut des Amériques, is being held in Paris on 20 and 21 May. The opening was also attended by OECD Secretary-General, Ángel Gurría, and the Director of PSE, Pierre-Yves Geoffard.

In her address, Alicia Bárcena stated that Latin America and the Caribbean is the world's most unequal region. In order to tackle this problem, she suggested that structural change should be promoted with greater investment and active industrial policies to boost qualitative changes in the production structure and employment with rights. All of the above should target sectors rich in knowledge, innovation and technological progress, with a view to diversifying exports and overcoming reprimarization, particularly in South America.

She stated "It is not only a matter of growing for equality but also equality for growth, because social progress is not limited to social policies - and we need macroeconomics for development".

Ángel Gurría affirmed that Europe and Latin America are now facing similar economic challenges, particularly in terms of inclusive growth, which involves increasing prosperity and achieving greater well-being for the entire population.

According to Mr. Gurría "We can achieve it with the right tools and policies". "It is vital to generate and maintain dialogue between the two regions, as they can learn a great deal from each other", he added.

Pierre-Yves Geoffard highlighted the importance of dialogue between policymakers and academics for PSE, as it is dedicated to policy research. He said "We need to create relations of trust between actors to make progress in such discussions", adding that these forums facilitate debate on policies to tackle inequality.

The opening session included an interactive panel discussion with the representatives of the three organizing institutions, as well as Jolita Butkeviciene, Director of the European Commission's Directorate for Development and Cooperation in Latin America and the Caribbean, and José Gómez, Deputy Director for the Americas and the Caribbean of the French Ministry of Foreign Affairs. The panel was moderated by Fiona Mackie, Latin America Editor of the Economist Intelligence Unit.