OECD warns about the growth of informal trade in Latin America

The agency indicated that due to the crisis, several Latin American countries are at risk of suffering more inequality and poverty

The Organization for Economic Cooperation and Development (OECD) warned that the crisis generated by the pandemic will cause strong increases in labor informality, inequality and poverty in several Latin American countries, so the governments of the region should focus its policies in developing strong social security systems and policies to curb informality.

This was indicated by the agency in its latest report, where it highlights that after a “devastating” 2020 due to the health crisis, future prospects are improving, noting that the response of governments from now on must address the structural obstacles to economic growth.

In this scenario, the Paris-based institution made a series of recommendations that have analyzed the situations in Argentina, Brazil and other countries, also citing several aspects in fiscal, educational, labor or social matters.

OECD Council recommendations

The OECD mentions in its report the little economic integration of Argentina in the world economy when compared to other emerging countries, a situation that has worsened with the impact of the health contingency.

Thus, the agency considers it relevant to reduce regulatory and tariff controls by the authorities, which would generate new opportunities for both citizens and companies.

In the case of Brazil, the agency highlighted the need for the country to reactivate its economic activity after the pandemic, in addition to focusing protection programs on the most vulnerable sectors of the population.

The Organization’s recommendations include changing the focus of social spending to benefit those most in need in order to reduce levels of inequality and poverty.

K. Tovar

Source: Notiamerica

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