CARIBBEAN 360- Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC) Alicia Bárcena says promoting public investment is crucial for sustaining economic growth in the region.
And she says the fall in the investment rate is one of the main factors explaining the reduction of potential growth in the region’s economies.
According to the last projections by ECLAC released this week, the overall Latin America and Caribbean gross domestic product will contract -0.3 per cent in 2015 and will grow 0.7 per cent in 2016 (although the Caribbean itself is expected to register growth in both years).
“The fall of investment in several countries, especially in sectors related to production and export of commodities, sets a need to look for alternatives to compensate this negative effect. The investment in infrastructure can have important benefits in medium- and long-term growth,” Bárcena said.
The ECLAC official also noted that, in the current context, fiscal policy must not only be focused on moderating the economic cycles, but also towards fostering productive development and structural change, through the protection of investment throughout time.
She also argued that fiscal policy must play a redistributive role and fiscal reforms must focus on income tax and on building progressive fiscal systems that fight evasion.
Bárcena also referred to the importance of working for the economic autonomy of women, considering that is one of the main tools for fighting inequality.