José Luis Machinea EXECUTIVE SECRETARY THE LATIN AMERICAN AND CARIBBEAN REGION AND THE MILLENNIUM DEVELOPMENT GOALS Presentation to the Second Committee New York, 22 October 2004 José Luis Machinea EXECUTIVE SECRETARY

LATIN AMERICA AND THE CARIBBEAN: THE MOST UNEQUAL REGION GINI COEFFICIENT, 1997-2002 (Per capita income concentration, by deciles)

THE LEVEL OF INEQUALITY WORSEN IN SEVERAL COUNTRIES DURING THE NINETIES LATIN AMERICA (17 COUNTRIES): TRENDS IN GINI COEFFICIENTS, NATIONWIDE TOTALS, 1990 - 2002

INEQUALITY AS AN OBSTACLE TO ACHIEVING THE M.D.G.s Unequal distribution of income and particularly unequal access to assets results in: - Higher poverty levels with the same level of per capita income Less success in reducing poverty levels with the same growth rate - Negative impact on economic growth More governability problems

CRITICAL ISSUES Tensions derived from inequalities in income and assets Slow growth (2,6%) Volatility of growth Adverse structural patterns Unequal free trade opportunities High unemployment and informality Deterioration of natural resources Importance of the regional sphere and regional cooperation Level and efficiency of social public expenditure

Latin America (18 countries): Level of social expenditure in Throughout the 1990s, and even after the crisis that broke out in late 1997, the countries made a determined effort to increase the percentage of GDP allocated to social sectors Latin America (18 countries): Level of social expenditure in 1990-1991, 1996-1997 and 2000-2001 Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of social expenditure figures. a/ Simple average for 16 countries (does not include Bolivia or El Salvador).

Increase in per capita public social expenditure: between 1990-1991 and 2000-2001, the regional average rose by 58%. Sharp differences across countries remained, however Latin America (18 countries): Level of per capita social expenditure in 1990-1991, 1996-1997 and 2000-2001 (1997 dollars) Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of social expenditure figures. a/ Simple average for 16 countries (does not include Bolivia or El Salvador).

REGIONAL AGENDA FOR DEVELOPMENT To boost economic growth  Improve the quality of international linkages Increase the competitiveness and productivity of the production apparatus: productive policies Institutional building and governance Maintain and improve the macroeconomic situation (counter cyclical policies) Recognition of heterogeneity Need to focus efforts Improve infrastructure and conservation of environment and natural resources Social cohesion covenant (education, employment, social protection)

ORIENTATION OF INTERAGENCY REGIONAL REPORT Present a comparative analysis of the situation in Latin America and the Caribbean (progress made, obstacles encountered and chances of achieving MDGs) Emphasize existing inequalities (social, geographic, crosscutting gender and ethnic groups) Propose a Latin American and Caribbean vision of development Highlight the need to improve access to assets (capital, land, knowledge, technology) Underscore the links among the MDGs and the synergies among them (double dividend approach) Emphasis on the various components of Goal No. 8 (international assistance, indebtedness and international trade and financing) Special focus on innovative means for financing El documento pretende recoger los planteamientos y objetivos generales señalados y acordados en diversas cumbres y reuniones tanto mundiales como regionales. La Declaración del Milenio recoge un conjunto muy básico de objetivos y metas con las cuales estuvieron dispuestos a comprometerse los 189 estados signatarios en la declaración del año 2000. Del mismo modo, el documento debiera reflejar, en nuestra opinión, nuestras visiones compartidas acerca del desarrollo de América Latina y el Caribe, y también el diagnóstico sobre los rezagos fundamentales en la región y que constituyen las principales trabas al cumplimiento de las metas en la región.

José Luis Machinea EXECUTIVE SECRETARY THE LATIN AMERICAN AND CARIBBEAN REGION AND THE MILLENNIUM DEVELOPMENT GOALS Presentation to the Second Committee New York, 22 October 2004 José Luis Machinea EXECUTIVE SECRETARY