DEVELOPMENT IN LATIN AMERICA

1
DEVELOPMENT IN LATIN AMERICA THE IDB AT
THE TURN OF THE CENTURY Nohra Rey de
MarulandaManagerIntegration and Regional
Programs DepartmentInter-American Development
Bank (IDB)October 24, 2003, Naha, Okinawa
2
Presentation Structure

• Economic Development in Latin America
• Human Development in Latin America
• IDB activities in Latin America
• Asia, Japan and Latin America IDB role
• Okinawa and Latin America

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How is Latin America doing in terms of
development?

• Income level
• Growth
• Inequality
• Poverty
• Human Development

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Income levels in LA are moderate among developing
regions...
GDP PER CAPITA (US1995)
Source WDI
5
with big differences among countries
GDP PER CAPITA, 2000
US1995
12,400
1,500
Source WDI
6
Growth has been modest...
GDP PER CAPITA, 2000
Index 1960100
Source WDI
7
Income inequality is very high
GINI COEFICIENT OF INCOME Regional median
Region
1960's
1970's
1980's
1990's
Latin America Caribbean
52.7
48.7
47.5
49.0
Sub Saharan Africa
39.0
48.5
42.5
43.4
Middle East North Africa
41.9
43.8
39.2
39.7
Southeast Asia Pacific
33.0
40.5
40.7
36.0
OECD
32.7
34.3
32.1
32.8
South Asia
33.7
33.0
32.0
30.6
Source Deininger Squire
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and also within the region
LATIN AMERICA GINI COEFICIENT OF INCOME (1990S)
Source Deininger Squire
9
and inequality in assets ownership is also very
high
GINI COEFICIENT OF LAND OWNERSHIP Regional median
Region
1960's
1970's
1980's
1990's
Latin America Caribbean
80.1
81.7
80.3
87.1
Middle East North Africa
64.6
61.4
68.6

South Asia
59.6
56.4
62.2
51.8
OECD
59.9
51.2
55.4
56.4
Sub Saharan Africa
50.8
52.4
51.0
43.7
Southeast Asia Pacific
51.0
50.9
46.9
Source FAO
10
High levels of poverty persist
PEOPLE LIVING ON LESS THAN US1 PER DAY
Millions of People
of Population
Source ECLAC
11
even though human development indicators have
improved
HUMAN DEVELOPMENT INDEX
HDI
SE Asia surpassed LA
Source UN
12
.as in extended life expectancy...
Life expectancy (years)
SE Asia surpassed LA
Source WDI
13
and in declining illiteracy...
Illiteracy rate ( of total population)
SE Asia surpassed LA
Source WDI
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and in education attainment...
POPULATION WITH SECONDARY AND HIGHER EDUCATION BY
REGION
()
45
40
35
30
25
20
15
10
5
0
1975
1985
1995
1975
1985
1995
Secondary education
Higher education
World average
Latin America
East Asia
Rest of Asia
Source Barro Lee
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In short, Latin America has registered
significant human development improvements, but
it still lags in comparison to other regions,
because of the presence of

• High Inequality
• Social Exclusion

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..social exclusion against

• Indigenous people
• Afro-descendants
• Women
• Small farmers
• Landless rural inhabitants
• Disabled people

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What does Inter-American Development Bank do in
Latin America and the Caribbean?
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IDB Basic Facts

• Founded in 1959, oldest and largest of the
  regional multilateral development banks
• Largest source of development finance for Latin
  America
• 46 Member countries
• - 26 Borrowing
• - 20 Non-borrowing (Japan is the only member
  country from Asia)

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IDB operations cover the entire spectrum of
economic and social development

• Current priorities
• Integration and regional development
• Competitiveness
• Modernization of the state
• Reform of the social sectors
• Poverty reduction
• Reduction of inequity

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2002-2003 Pipeline Project Distribution
Agriculture
Others
Transp.
Social Inv.,
14
5
Communic.
3
Health
Education
Energy
21
7
Industry
Credit
Sanitation
3
Urban
Environment
Mod. of the
Dev.
3
State
19
25
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Integration and Regional Programs Department (INT)

• is responsible for the preparation and
  monitoring of regional programming and the
  dissemination of information on integration
  processes and trade.

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• INT facilitates RPD Regional Policy Dialogue
  a space for a dialogue among member countries
• AIM
• contribute to the exchange of experiences between
  countries
• prepare them to face the vast challenges of
  globalization
• generate processes for regional cooperation

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INT, and IDB, look beyond Latin America and the
Caribbean. How?
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The Japan Program (JP) was created in 1999,
within the INT.

• JP Matches

interests needs in LAC
experiences from East Asia
Technical cooperation
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INDES-JP training program for Asian Descendants
in social policy (Washington, DC, April 2002)
Seminar Environment Development Integrated
Approaches to Sustainable Resource Management
(Mexico City, February 2003)
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• The IDB Office in Tokyo
• was opened in Tokyo in September 1995
• to foster business and financial relations with
  Japan and other Asian countries.

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Workshop Womens Participation in the Promotion
of Social Development Lessons from Asia, Latin
America the CaribbeanOctober 2730,
2003National Womens Education Center, Saitama

• 14 experts from 13 countries from 2 regions.
• How do women and womens organizations contribute
  in community development, public policy
  dialogues and formal leadership roles?
• How does their participation improve the
  well-being of the society as a whole?

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Latin America Asia

• Strong linkage in terms of
• immigration history and commercial ties.

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Economic, Social Cultural Contribution of Asian
Descendants in Latin America

• Contribution in the area of agriculture,
  aquaculture, medicine, gastronomy, sports, art,
  etc.
• On-going Japan Program research project analyzes
  15 cases of Japanese, Chinese and Korean
  descendants and their contributions in Latin
  America the Caribbean.

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Latin Americans in Japan Today

• Contribution through remittances Dekaseguis,
  Latin American migrant workers to Japan (1985).
• Today, 260,000300,000 Latin American dekaseguis
  in Japan (2002).

Source Immigration Bureau, Japan
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Latin Americas Trade with Asia
Asia includes Australia, China, Hong Kong,
Indonesia, Japan, Malaysia, New Zealand,
Philippines, Korea, Singapore, Taipei China
Thailand. Source UNSTAT
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Latin America Okinawa

• Migration History
• Okinawans migration to Latin America started
  in
• 1904 to Mexico
• 1906 to Peru
• 1908 to Brazil
• 1910 to Bolivia

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Migration from Okinawa to Latin America
(1)Latin America was the destination of 45 of
Okinawans who migrated throughout the world.
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Migration from Okinawa to Latin America (2)
Source Okinawa International Exchange Division
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Future IDB activities in Okinawa

• INDES Workshop on Corporate Social
  Responsibility in the Management of Social
  Sectors (2004)
• Japan Program Seminar on Migration in the
  Context of Globalization (2004)

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2005 IDB Annual Meeting in Okinawa