e-Health in Peru: an emerging issue

Includes bibliography

Natural resources: status and trends towards a regional development agenda in Latin America and the Caribbean. Contribution of the Economic Commission for Latin America and the Caribbean to the Community of Latin American and Caribbean States

Includes bibliography.

Wage differentials between the public and private sectors in Chile: Evidence from longitudinal data

Includes bibliography.

Energy Consumption and Efficiency: Emerging Challenges from Reefer Trade in South American Container Terminals

This issue of the FAL Bulletin discusses the relevance of energy consumption as a basis for identifying energy efficiency potential and calculating the carbon footprints of ports and terminals in Latin America and the Caribbean (LAC), focusing on the Southern Cone countries of Argentina, Chile, Paraguay and Uruguay.

The employment situation in Latin America and the Caribbean: Recovery of employment: towards a sustainable model

The adverse effects on Latin America and the Caribbean of the global economic and financial crisis, the worst since the 1930s, have been considerably less than was once feared. Although a run of growth was cut short in 2009 and regional output shrank by 1.9%, the impact of the crisis was limited by the application of countercyclical fiscal and monetary policies by many of the region’s governments. The recovery in the economies, particularly in South America, has gone hand-in-hand with the rapid resurgence of the emerging economies of Asia, with all the favourable consequences this has had for global trade. A similar pattern may be observed regarding the impact of the crisis on labour markets in Latin America and the Caribbean. Although millions of people lost their jobs or had to trade down to lower-quality work, levels of employment (including formal employment) fell by less than originally foreseen. At the same time, real wages rose slightly in a context of falling inflation. The labour market thus stabilized domestic demand, and this contributed to the recovery that began in many countries in late 2009. Improved international trade and financing conditions, and the pick-up in domestic demand driven by macroeconomic policies, have led different commentators to estimate growth in the region’s economy at some 6% in 2010. As detailed in the first part of this edition of the Bulletin, the upturn has been manifested at the regional level by the creation of formal employment, a rise in the employment rate, a decline in joblessness and a moderate increase in real wages. Specifically, it is estimatedthat the regional unemployment rate will have dropped by 0.6 percentage points, from 8.1% in 2009 to 7.5% in 2010. The performance of different countries and subregions has been very uneven, however. On the one hand, there is Brazil, where high economic growth has been accompanied by vigorous creation of formal jobs and the unemployment rate has dropped to levels not seen in a long time. Other countries in South America have benefited from strong demand for natural resources from the Asian countries. Combined with higher domestic demand, this has raised their economic growth rates and had a positive impact on employment indicators. On the other hand, the recovery is still very weak in certain countries and subregions, particularly in the Caribbean, with employment indicators continuing to worsen.Thus, the recovery in the region’s economy in 2010 may be characterized as dynamic but uneven. Growth estimates for 2011 are less favourable. The risks associated with the imbalances in the world economy and the withdrawal of countercyclical fiscal packages are likely to cause the region to grow more slowly in 2011. Accordingly, a small further reduction of between 0.2 and 0.4 percentage points in the unemployment rate is projected for 2011. However, these indicators of recovery do not guarantee growth with decent work in the long term. To bolster the improvement in labour market indicators and generate more productive employment and decent work, the region’s countries need to strengthen their macroeconomic policies, improve regional and global policy coordination, identify and remove bottlenecks in the labour market itself and enhance instruments designed to promote greater equality. Like the rest of the world, the Latin American and Caribbean region is also confronted with the challenge of transforming the way it produces so that its economies can develop along tracks that are sustainable in the long term. Climate change and the consequent challenge of developing and strengthening low-carbon production and consumption patterns will also affect the way people work. A great challenge ahead is to create green jobs that combine decent work with environmentally sustainable production patterns. From this perspective, the second part of this Bulletin discusses the green jobs approach, offering some information on the challenges and opportunities involved in moving towards a sustainable economy in the region and presenting a set of options for addressing environmental issues and the repercussions of climate change in the world of work. Although the debate about the green jobs concept is fairly new in the region, examples already exist and a number of countries have moved ahead with the application of policies and programmes in this area. Costa Rica has formulated a National Climate Change Strategy, for example, whose foremost achievements include professional training in natural-resource management. In Brazil, fuel production from biomass has increased and social housing with solar panelling is being built. A number of other countries in the region are making progress in areas such as ecotourism, sustainable agriculture and infrastructure for climate change adaptation, and in formalizing the work of people who recycle household waste. The shift towards a more environmentally sustainable economy may cause jobs to be destroyed in some economic sectors and created in others. The working world will inevitably undergo major changes. If the issue is approached by way of social dialogue and appropriate public policies, there is a chance to use this shift to create more decent jobs, thereby contributing to growth in the economy, the construction of higher levels of equality and protection for the environment.

A first approach to the impact of the real exchange rate on industrial sectors in Colombia

Much has been said about possible symptoms of Dutch disease in Colombia in the wake of a marked upsurge in commodity prices and the significant real appreciation of the national currency. This paper examines whether the real effective exchange rate had an impact on industry during the period 2000-2010. Specifically, it evaluates the effect of the appreciation of the real exchange rate on the value added of 63 industrial sectors in Colombia using the Arellano and Bond (1991) generalized method of moments (gmm) estimator. Overall, our results confirm a negative relationship between real exchange rate appreciation and industry. The analysis showed that real exchange rate appreciation had a significant impact on the value added of 21 sectors: a negative effect for 18 sectors and a positive effect for 3 sectors.

An assessment of the economic impact of climate change on the Agriculture, Energy and Health sectors in Trinidad and Tobago

This report analyses the agriculture, energy, and health sectors in Trinidad and Tobago to assess the potential economic impacts of climate change on the sectors. The fundamental aim of this report is to assist with the development of strategies to deal with the potential impact of climate change on Trinidad and Tobago. It also has the potential to provide essential input for identifying and preparing policies and strategies to help advance the Caribbean subregion closer to solving problems associated with climate change and attaining individual and regional sustainable development goals. Some of the key anticipated impacts of climate change for the Caribbean include elevated air and sea-surface temperatures, sea-level rise, possible changes in extreme events and a reduction in freshwater resources. The economic impact of climate change on the three sectors was estimated for the A2 and B2 IPCC scenarios until 2050. An exploration of various adaptation strategies was also undertaken for each sector using standard evaluation techniques. The study of the impact of climate change on the agriculture sector focused on root crops, green vegetables and fisheries. For these sectors combined, the cumulative loss under the A2 scenario is calculated as approximately B$2.24 and approximately B$1.72 under the B2 scenario by 2050. This is equivalent to 1.37% and 1.05% of the 2008 GDP under the A2 and B2 scenarios, respectively. Given the potential for significant damage to the agriculture sector a large number of potential adaptation measures were considered. Out of these a short-list of 10 potential options were selected by applying 10 evaluation criteria. All of the adaptation strategies showed positive benefits. The analysis indicate that the options with the highest net benefits are: (1) Building on-farm water storage, (2) Mainstreaming climate change issues into agricultural management and (3) Using drip irrigation. Other attractive options include water harvesting. The policy decisions by governments should include these assessments, the omitted intangible benefits, as well as the provision of other social goals such as employment. The analysis of the energy sector has shown that the economic impact of climate change during 2011-2050 is similar under the A2 (US$142.88 million) and B2 (US$134.83 million) scenarios with A2 scenario having a slightly higher cost (0.737% of 2009 GDP) than the B2 scenario (0.695% of 2009 GDP) for the period. On the supply side, analyses indicate that Trinidad and Tobago’s energy sector will be susceptible to the climate change policies of major energy-importing countries (the United States of America and China), and especially to their renewable energy strategies. Implementation of foreign oil substitution policy by the United States of America will result in a decline in Trinidad and Tobago’s Liquefied Natural Gas (LNG) export (equivalent to 2.2% reduction in 2009 GDP) unless an alternative market is secured for the lost United States of America market. China, with its rapid economic growth and the highest population in the world, offers a potential replacement market for Trinidad and Tobago’s LNG export. In this context the A2 scenario will offer the best option for Trinidad and Tobago’s energy sector. The cost-benefit analysis undertaken on selected adaptation strategies reveal that the benefit-cost ratio of replacing electric water heaters with solar water heaters is the most cost-effective. It was also found that the introduction of Compact Fluorescent Light (CFL) and Variable Refrigerant Volume (VRV) air conditioners surpasses the projected cost of increased electricity consumption due to climate change, and provides an economic rationale for the adoption of these adaptation options even in a situation of increased electricity consumption occasioned by climate change. Finally, the conversion of motor fleets to Compressed Natural Gas (CNG) is a cost-effective adaptation option for the transport sector, although it has a high initial cost of implementation and the highest per capita among the four adaptation options evaluated. To investigate the effect of climate change on the health sector dengue fever, leptospirosis, food borne illnesses, and gastroenteritis were examined. The total number of new dengue cases for the period 2008 to 2050 was 204,786 for BAU, 153,725 for A2 and 131,890 for the B2 scenario. With regard to the results for leptospirosis, A2 and B2 seem to be following a similar path with total number of new cases in the A2 scenario being 9,727 and 9,218 cases under the B2 scenario. Although incidence levels in the BAU scenario coincided with those of A2 and B2 prior to 2020, they are somewhat lower post 2020. A similar picture emerges for the scenarios as they relate to food-borne illnesses and to gastroenteritis. Specifically for food-borne illnesses, the BAU scenario recorded 27,537 cases, the A2 recorded 28,568 cases and the B2 recorded 28,679 cases. The focus on the selected sources of morbidity in the health sector has highlighted the fact that the vulnerability of the country’s health sector to climate change does not depend solely on exogenously derived impacts, but also on the behaviour and practices among the population. It is clear that the vulnerability which became evident in the analysis of the impacts on dengue fever, leptospirosis and food-borne illnesses is not restricted solely to climate or other external factors. The most important adaptation strategy being recommended targets lifestyle, behaviour and attitude changes. The population needs to be encouraged to alter their behaviours and practices so as to minimise their exposure to harmful outcomes as it relates to the incidence of these diseases.