6 ways Latin America and the Caribbean can create a green, resilient, and inclusive recovery

Latin America has been drastically affected by the COVID-19 pandemic. The number of cases and deaths continue to grow as we write this blog. This year 4 million people may slip back into poverty and GDP may decline 8%. While the focus of countries must be on the health crisis, it is time to plan for a sustainable economic rebound.

The region has natural and built endowments that can position it for a robust, green recovery. The region has the cleanest energy matrix in the world, mining resources central to the decarbonization agenda, and dense cities that can easily expand electric and non-motorized transport modes. It has 22% of the forest areas of the world, and it can become an effective global carbon sink. It´s the world’s largest producer of ecosystem services and the first net food exporter, with great options for sustainable low-emissions agriculture and aquaculture. Latin America and the Caribbean (LAC) can leverage these attributes for a robust, greener recovery.

At the same time, the COVID-19 crisis has laid bare problems that predate the pandemic. About 20% of the region’s people live in slums, and 160 million people lack access to safe water. Both factors amplify the COVID-19 risks. Afro and indigenous people are one third of the region’s population, but they are two thirds of the poor. Every year on average, between 150,000 and 2.1 million people are pushed into extreme poverty because of natural hazards. The pandemic magnifies these inequalities and vulnerabilities. A green recovery for Latin America must not leave aside the inclusive and resilient dimensions of a strong and balanced turnaround .

The region can consider six priorities for its green, resilient and inclusive COVID-19 recovery:

These are long standing goals for the region. How to achieve them now when pressures are greater than ever?

First, most countries in LAC entered this crisis with weak fiscal positions. Each investment needs to focus on potential savings, as well as maximizing impacts and efficiency of all public spending.

Second, many countries of the region underinvest their capital budgets – for every dollar of infrastructure investment planned for construction in a year, only 40 to 80% is implemented. Many stimulus programs from past crises included complex projects whose benefits came too slow and too late. Investments should be ready, easy to implement, and fast to execute.

Third, jobs were a critical issue before the crisis and are even more so now. Recovery programs must prioritize the jobs needed by the poor and newly poor . Many investments to increase resilience, services, and efficiency can be designed to create more low and medium skills jobs. Digital technology recovery programs should be designed to generate skilled jobs and SMEs.

Countries across the region have swung into action with much needed recovery programs. The World Bank is a partner in these efforts. Bringing global know-how and financing, we can help the region use the recovery to build a better future starting today.