Latin American Economic Outlook 2010

Lisbon

30 November

Hotel Cascais Miragem

Madrid

2 December

Casa América

Paris

10 December

Maison de l'Amérique latine

Santo Domingo

9 March

Funglode

Beijing

26 March

CASS/ILAS

Mexico

10 April

OECD Mexico Centre

Washington DC

8-10 April

Bogota, Colombia

13 April

Mexico

19 April

Lima, Peru

3 May

Trade and financial resilience, rather than exposure, will allow countries to emerge from the crisis stronger. The OECD Latin American Economic Outlook 2010 provides a fresh analysis of economic trends in the region with a particular focus on the role that international migration and remittances play in fostering development.

Promote open and resilient economies

Latin American countries that opened their markets to international competition during the last decade have not been more vulnerable to the global economic crisis. Instead, trade and financial openness have been accompanied by the creation of resilience mechanisms that allow more space to fund counter-cyclical policies. Fiscal and monetary measures, however, should be sustainable and not compromise macroeconomic fundamentals; nor should they reverse the progress made during the past five years in reducing poverty.

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Did you know?
Trade of goods and services as a percentage of GDP has almost tripled in Latin America in the last 25 years.

Did you know?

While only 15% latin American immigrants are covered by social security agreements between origin and destination countries, 98% of workers moving within OECD high-income countries enjoy such portability benefits.

Extend social protection for migrants

Changing patterns of international migration will affect the depth of the crisis and its impact in Latin America. International migration can help curb unemployment and boost economic dynamism in the region if destination countries promote legal and flexible access for migrants to their labour markets better aligned with their labour demand. Mobility can be encouraged through programmes that provide the right incentives and that guarantee the portability of social benefits across borders.

Boost competition to lower remittance costs

Despite recent progress, the costs of remittance transfers to Latin America can and should be further reduced. Even a small cutback in the cost can yield substantial benefits for migrants and their families. More competition and a clearer regulatory framework for operators transferring remittances via mobile phone payments could help lower the cost and be an incentive for sending remittances through formal channels.

Did you know?

A reduction of just 1% in the average transfer cost of remittances could shift up to USD 800 million from transfer companies to migrants’ families..

Did you know?

More than half of Latin American workers are not entitled to pension rights through their jobs.

Tap remittances' potential for financing

As consumption and investment are affected by the crisis, remittances can provide an important boost to domestic demand and financial development in Latin America. Despite their recent slowdown, remittances are far less volatile than other external flows; they also tend to benefit poorest families hardest hit by the crisis. Policies must capitalise on the ability of remittances to expand access to financial services among those traditionally excluded, lower investors’ perception of risk associated with investing in the region and help fund development projects that spur investments in human capital.
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Migration Country Notes and Database on Immigration*  

Access the Database on Immigration (DIOC/E), which includes 15 Latin American Countries, 28 OECD and 12 other non-OECD countries. DIOC/E is composed of the following 3 tables (csv format):

Table 1: Immigration Basic Demographic Variables

Table 2: Immigration Labour Force

Table 3: Immigration Occupation

List of variables

 * These data were compiled by the OECD Development Centre for the Latin American Economic Outlook 2010, following the methodology established by the Database of Immigrants in OECD Countries (DIOC), produced and maintained by the OECD Directorate of Employment, Labour and Social Affairs (DELSA). The extension of the DIOC methodology to these Latin American countries was a collaborative effort of the Development Centre and DELSA.