Latin America & Caribbean

The economic malaise of the past few years weakened social progress and had an adverse effect on jobs and household incomes: inequality has risen and around one-third of Latin Americans remain vulnerable to falling back into poverty.

However, with a return to growth last year, livelihoods and human development outcomes improved slightly – the economic recovery helped rebuild social pillars that in turn eased poverty and boosted prosperity. Socioeconomic strengthening has also helped support the economic recovery via greater investments in people, particularly the poor, although the region’s education indicators remain weak, with around one-third of children not completing high school. Efforts to build resilience to shocks – economic, natural and social, including crime and violence – is also part of the reform agenda to ensure sustainable and equitable long-term growth in line with the SDGs.

OFID’s footprint in the LAC region extends to 31 countries, 11 of whom received support in 2017, sharing a sizable US$354.5 million in new financing for development, or 24 percent of total global commitments for the year. The majority of approvals (US$278.5 or 79 percent) was made via the public sector for agriculture, energy, transport, and water and sanitation operations.