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Having a better trained population is one of the most efficient tools to reduce inequality and guarantee long term ...
Having a better trained population is one of the most efficient tools to reduce inequality and guarantee long term economic growth
For over 5 years, Latin America has been looking for solutions for an economic slowdown that threatens to throwback the social advances made since the beginning of the century and to reduce middle class.
The main question is the following: how to achieve sustainable growth that benefits every citizens and that does not depend on the variations of the prices of commodities o the changes of the global economy.
Experts and rulers agree on the fact that the answer to this economic situation lies in rising productivity and making certain that added value does not focus on very few people. The secret to achieve this, according to the last Economic and Development Report (RED 2016), published by CAF – Bank of Development of Latin America-, is having better trained workers who are capable of performing successfully in the jobs the labor market demands, as well as in other aspects of life that guarantee full economic and civic inclusion.
But, to reach this goal, the region must overcome serious obstacles, such as the following. Currently, only half of Latin American youngsters graduate from secondary education; two out of three students do not have basic mathematics skills; 20 million youngsters -20% of the total- do not work, nor study; almost half of workers are under informality, which offers poorer quality jobs and includes a large number of establishments that provide very little to productivity and to added growth to the economy.
The quality human capital deficit prevents the region from growing to its full potential while limiting the aspirations of social mobility of the population.
“Regional human capital improvements should be produced in an integral way, seeking to develop cognitive, socioemotional and physical skills. Investments for developing skills must be channeled not only through the education system, but also through the family, the environment and the labor market, in order to reach every aspect that has an influence in people’s training”, says Lucila Berniell, main executive at CAF.
The RED 2016 recommends that efforts made in the education system, such as providing schools with more and better resources, also include public initiatives that help families invest more quality time in the development of their children. Meanwhile, the connection of the education system and the world of work may contribute to young people making better vocational and professional decisions, by offering training, information and experiences that enable transitions to good jobs.
When, how and where are these skills developed?
Skills are developed during the entire lifetime, but the basis are set during the first two decades, and even before being born. Building new skills is an accumulative process, in which the connections among family, school and the labor world are particularly promoted in an environment that has a proper physical and social infrastructure. A quality infrastructure that provides basic public services, such as water and sanitation, and safe public spaces, does not only complement the efforts made by parents raising their children, but also helps families prevent and reduce adverse shock effects (economic, climate, or violence), which, otherwise, may interrupt or seriously complicate the skills accumulation process.
The challenge for politics is to develop horizontal coordination and cooperation schemes among the areas of public administration responsible for the provision of useful goods and services for families, schools, the habitat, and the world of work.
“Promoting human capital through these four areas involves several challenges for public policies, but medium and long term profit for development is very high. Considering its demographic structure, Latin America still is a very young region. Therefore, betting on training kids and youngsters on proper skills is the best investment possible”, says Berniell.