Latin America’s Low Productivity


News from Panama / Wednesday, February 3rd, 2016

low productivity

Come on, this is not that difficult to figure out guys.  While in the long run, education will help but the way things happen here, or do not happen here, that is a generational change that needs to take place.  Any top talent that works here is paid peanuts so they go to other places to work.  I was going to have my son specialize in hospitality management and come back here to work.  He would be paid 25% of what he could earn in the US.

Gaps in GDP per capita between different countries are directly related to the productivity gaps between their respective economies, with education being the main factor in these differences.

The OECD report “Promoting inclusive growth of productivity in Latin America” ??says that although the region made progress in reducing poverty over the past 20 years, it still stands out at the global level, because of the unequal income its inhabitants.

Five areas are identified in which key reforms need to be made to correct the poor productivity of the region: human capital, labor market, business environment, innovation and infrastructures

The location of human capital at the top of the list, clearly indicates its importance and consideration as the basis of the problem: “… investing in education, skills and lifelong learning will be essential in improving labor productivity and expanding economic opportunities.”