UNESCO SCIENCE REPORT

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UNESCO SCIENCE REPORT A variety of policy instruments have been introduced to make endogenous research more responsive to the needs of the productive system and society at large. This is now beginning to bear fruit in some countries. Guillermo A. Lemarchand A young man from the Achuar Territory in Ecuador holds up a frog. There is a growing research focus on pharmacology, biodiversity and the sustainable management of natural resources in Latin America. Photo: © James Morgan/ Panos 174
7 . Latin America Latin America Argentina, Plurinational State of Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Bolivarian Republic of Venezuela Guillermo A. Lemarchand INTRODUCTION Development slowing after a buoyant decade Latin America consists essentially of middle-income economies 1 with very high (Argentina, Chile, Uruguay and Venezuela), high or medium levels of development. Chile has the highest GDP per capita and Honduras the lowest. Within countries, inequality is among the highest in the world, even though there has been some improvement in the past decade. According to the United Nations Economic Commission for Latin America (ECLAC), the four countries with the lowest levels of poverty are, Honduras, Brazil, Dominican Republic and Colombia (on Brazil, see Chapter 8). The Latin American economy grew by just 1.1% in 2014, meaning that GDP per capita actually stagnated. Preliminary figures for the first quarter of 2015 suggest an ongoing slowdown in activity since the decade-long commodities boom wound down in 2010 (see also Figure 7.1); some of the region’s larger economies could even experience a contraction. While the region is expected to grow by about 0.5% on average in 2015, this masks a fairly wide variation: 1. Argentina and the Bolivarian Republic of Venezuela have had high inflation rates for the past few years. However, the ‘official’ exchange rate has remained flat, a factor which might generate some distortions in the real GDP per capita values expressed in US dollars. For a discussion of this issue, see ECLAC (2015a). although South America is set to contract by 0.4%, Central American economies and Mexico are likely to expand by 2.7% (ECLAC, 2015a). Prospects for Central America have improved, thanks to the healthy economic growth of their biggest trading partner, the USA (see Chapter 5), and lower oil prices since mid-2014. Moreover, declining prices for raw materials since the end of the commodities boom in 2010 should give countries in Central America and the Caribbean which are net importers of these products some breathing space. The Mexican economy is also dependent on North America’s performance and is, thus, looking more dynamic. Present reforms in Latin America within the energy and telecommunications sectors, in particular, are expected to push up growth rates in the medium term. Meanwhile, growth forecasts are being revised downwards for those countries of South America that export raw materials. GDP is most dependent on this type of export in Venezuela, followed by Ecuador and Bolivia then Chile and Colombia. The Andean countries of Chile, Colombia and Peru are in a comparatively enviable position but this may be short-lived, since their growth is expected to falter. Paraguay is also showing strong growth, as it recovers from a severe drought in 2012, whereas Uruguay’s economy is growing at a more moderate rate. Figure 7.1: Trends in GDP growth in Latin America, 2005–2009 and 2010–2014 2005–2009 2010–2014 Chapter 7 1.1 1.5 2.1 1.9 1.8 2.7 3.7 3.7 3.6 3.2 3.6 3.4 2.9 2.7 3.3 4.3 4.3 4.1 5.8 6.5 5.1 6.4 6.1 8.2 8.3 5.0 5.9 5.7 4.8 4.7 4.8 4.7 5.3 5.0 4.6 4.7 6.8 7.1 Panama Cuba Peru Dominican Republic Venezuela Uruguay Argentina Costa Rica Colombia Bolivia Honduras Ecuador Guatemala Brazil Chile Paraguay Nicaragua El Salvador Mexico Note: Data for Cuba cover 2005–2009 and 2010–2013. Source: World Bank’s World Development Indicators, September 2015 175
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UNESCO SCIENCE REPORT Towards 2030
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Published in 2015 by the United Nat
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Report team Director of the Publica
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UNESCO SCIENCE REPORT A closer look
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Foreword Irina Bokova, Director-Gen
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