By: Staff Writer
June 5, 2026
The Economic Commission for Latin America and the Caribbean (ECLAC) said in their Panorama of Productive Development Policies in Latin America and the Caribbean 2025 that countries in the Latin American and Caribbean region needs to redouble their efforts to promote productive transformation in order to boost productivity.
The report said: “Most countries in Latin America and the Caribbean are caught in three development traps that are limiting progress with the well-being of their populations: one of low capacity for growth, another of high inequality and low social mobility and cohesion, and a third of weak institutional capacities and governance. These challenges are compounded by climate change and the need to move towards environmentally sustainable development
“One imperative for escaping the first trap is a redoubling of efforts to promote the productive transformation of economies with a view to boosting productivity and achieving higher, sustained, inclusive and sustainable growth. To this end, it is essential to scale up and improve productive development policies.”
There must be a diagnosis of productivity in the region and some of the region’s most recent experiences with productive development policies also a diagnosis in science, technology and innovation (STI) policies along with cluster and other productive coordination initiatives, and green and inclusive productive development policies, the report discussed.
The report also said: “Improving productivity is the core challenge when it comes to boosting growth and productive transformation; science, technology and innovation are key drivers of productive transformation; productive coordination is the term used for the mechanisms of governance and collaboration between key stakeholders to multiply productive development efforts; and environmental sustainability and social inclusion are principles that should inform the best version of this transformation.
“Together, these themes configure a road map for progress towards higher and more transformative and sustained growth that can also accelerate movement towards the Sustainable Development Goals.”
The report added: “Achieving a more productive, inclusive and sustainable future in Latin America and the Caribbean requires strengthened capacities to manage the economic transformation that is needed. As ECLAC also details, transformative management capabilities involve governance, the technical, operational, political and prospective (TOPP) capabilities of institutions, political economy and spaces for social dialogue.”