World Bank Breaks Down Latin America's Challenges This 2016
Latin America has been every bit of an improved nation, but that is not without the challenges that the region is experiencing since the millennium.
According to the World Bank, Latin America has been greatly affected by the slowdown of Asian economics, particularly China. In the years ahead, it may be significant for them to look into other options and not depend on the growth of its Asian counterparts. According to Augusto de la Torre, Chief Economist for World Bank, this might also be the perfect time for Latin America to indulge in the quality of education, self-employment and care for the environment.
The low record of employment and the insufficient amount of wages have overwhelmed the economy of the Latin America region. The poverty level has also seen its lowest, something that the region should not dwell on but rather look into what is already been improving and thrive in it.
De la Torre said in his statement, "Adapting to the new context will generate social problems and possibly increase income inequality. They have to think about social protection nets to protect the poorest families but in such a way that doesn't de-incentivize the desire to work and create jobs."
Despite the challenges, World Bank sees high potential for the Latin America region when it comes to self-sufficiency. About 60 percent of the working age in the region currently owns a small entrepreneurial start-up or works for a small business. This self-employment that is currently practiced will eventually contribute to their economic growth as well. This year has seen the trend of self-employment, especially with the region having some issues with labor initiatives. The absence of quality jobs made it impossible for the new generation of graduates to pick their options, that is why 19 percent of Latin America's new businesses are managed by people under the age of 35.
Julian Robinson, Minister for Science in Jamaica, admitted that while they are traditionally dependent on the region's physical products, digital technology has also played a big part on their daily lives.
Robinson said, "Digital technology is key to us. We see the digital economy as a means of realizing the potential of the creativity that exists in Jamaica."
By doing so, the region's quality of education must also improve in order to provide better learning for their next generation of entrepreneurs.
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