José Antonio ARDAVIN, Head of the Latin America and Caribbean Unit Global Relations Secretariat

About the OECD

Founded in 1961, The Organisation for Economic Co-operation and

Development is a unique forum where governments can compare policy

experiences, seek answers to common problems, identify good practices

and co-ordinate domestic and international policies

• In 1948, the OEEC (Organisation for European Economic Co-operation), in charge of

co-ordination of the Marshall Plan, was established.

• In 1957, Treaty of Rome was signed.

• In December 1960, the OEEC became the OECD (Canada and USA join OEEC

members followed then by Japan in 1964 and others later).

• In the 1990’s the Organisation opened to Mexico, 4 Central and Eastern European

countries and Korea.

• In 2001, launches a number of “regional approaches” among them, a Regional Approach

to Latin America and the Caribbean (LAC)

• In 2010, Chile, Estonia, Israel and Slovenia joined the Convention.

• The accession process of Colombia, Latvia and the Russian Federation* is ongoing.

• In May 2007 the OECD started an “Enhanced Engagement” cooperation with Brazil,

China, India, Indonesia and South Africa, currently “Key Partners”

• In 2009, a number Spain and Mexico launch the LAC Initiative

• In 2014 the OECD will start a number of Country Programmes. Peru is one of the

candidate countries to possibly engage through this cooperation tool.

• In 2015, the OECD Council will decide whether to open accession discussions with

Costa Rica and Lithuania. In the intervening period, these countries have presented an

Action Plan of intensified cooperation with the Organisation

Some historical background on the OECD and highlights on its relationship with Latin America

Latin America and the Caribbean

Economic Outlook

LAC and OECD

Growth Rates

Selected LAC Countries

Growth Rates

Source: Data from IMF and CEPLAC *Estimations for 2013 and previsions for 2014

Source: Data from IMF and Consensus Forecast * Estimations ** Previsions

During the last decade, Latin America and the Caribbean had one of its best

economic performances with average GDP growth of 5% 2003-2008

Low global demand impacts LAC

World trade and LAC GDP growth International commodities prices

Source: Data from IMF Source: Data from Datastream and Bloomberg

-15

-10

-5

0

5

10

15

1980 1985 1990 1995 2000 2005 2010 2015

World trade volume Latin American GDP

0

0.5

1

1.5

2

2.5

3

3.5

4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Gas Copper Soy

The current economic environment with “flat trade” and lower commodity prices,

is impacting Latin American economies…

The new global environment deteriorates

external balance in LAC

Current Account of Latin American and Caribbean countries (%GDP)

Source: Data from IMF *Estimations for 2013

…and strengthens the need for a less commodity-dependent growth pattern

Note: Productive capabilities index (Appendix 2.A2). Higher values in the variable let a country produce a more sophisticated range of goods. At any given moment, the capacity variable depends on the level of connectivity of the network of products, which is why it is normalised. Thus a value equal to 0 implies capability levels equal to the worldwide average. A value of 1 (-1) indicates capabilities one standard deviation above (below) that average. Source: Authors’ calculations based on data from COMTRADE and Feenstra, R. C., R. E. Lipsey, H. Deng, A. C. Ma y H. Mo (2005), “World Trade Flows: 1962-2000”, NBER Working Paper Nº 11040.

Productive capabilities indicator (1990 vs 2009)

The region has advanced little in structural change

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

1990 2009

…and advance in the structural reform agenda

Latin America and the Caribbean

Political Outlook

Regional trade and political groupings in LAC

Pacific Alliance

The emergence of two major trade

communities is an important development…

Mercosur

2014 2015

Average growth

BBVA Estimates

3.8% 3.7%

2014 2015

Average growth

BBVA Estimates

1.5% 1.8%

Mercosur Population

(millions) GDP (US$

billions) GDP per

capita FDI (US$ millions)

Trade (US$ billions)

Brasil 199 2,252 11,317 76,110 597

Argentina 41 475 11,585 12,128 176

Paraguay 7 25 3,571 363 23

Uruguay 3 50 16,667 2,906 28

Venezuela 30 381 12,700 899 192

Total 280 3,183 11,368 92,406 1,016

% of LAC 46% 55% 48% 34%

Pacific Alliance

Population (millions)

GDP (US$ billions)

GDP per capita

FDI (US$ millions)

Trade (US$ billions)

Mexico 121 1,178 9,736 15,453 793

Chile 17 270 15,882 30,323 184

Colombia 48 370 7,708 15,649 141

Peru 30 204 6,800 12,244 101

Total 216 2,022 9,361 73,669 1,218

% of LAC 35% 36% 40% 41%

…as well as the birth of a new regional political

body which groups all 33 LAC countries

~LAC+Spain

and Portugal

~LAC+US and

Canada

The OECD and Latin America

General Context Regional Programmes/ Initiatives

•Latin America and the Caribbean

•MENA

•SEA

•Central Asia

•Eastern Europe

Global Fora

Environment, Eduction,

Trade, Development…

Committees and

Working Parties

Competition, Investment,

Innovation…

Development Centre

Argentina, Brazil, Colombia,

Costa Rica, Panama, Peru and

the Dominican Rep. In addition to

Mexico and Chile are members.

The OECD and Latin America

A wide collaboration on different fronts…

SOE CGR SBO A-C

INV TAX

COMP

H2O INN

LEO LAC

EcF

LR@G LG@G LPO LGGI PISA’L

COMP

INV INNOV A-Br Eval

CorpG

SOE Water Gov

MWRH

Start-ups

SMEs

Start-ups

Reg/P.Gov

M.Tax

Ctre

PAC

MEX

…linked to the work of respective

committees

SOE CGR SBO A-C

INV TAX

COMP

H2O INN

LEO LAC

EcF

LR@G LG@G LPO LGGI PISA’L

COMP

INV INNOV A-Br Eval

CorpG

SOE Water Gov

MWRH

Start-ups

SMEs

Start-ups

Reg/P.Gov

M.Tax

Ctre

PAC

MEX Pub. Aff / Dissemination Cap. Building

…and covering different forms of engagement

SOE CGR SBO A-C

INV TAX

COMP

H2O INN

LEO LAC

EcF

LR@G LG@G LPO LGGI PISA’L

COMP

INV INNOV A-Br Eval

CorpG

SOE Water Gov

MWRH

A highly visible, horizontal,

regional publication

(w/ ECLAC&CAF)

An annual high level regional

forum (w/ IDB & Bercy)

Policy Dialogue: 9 Networks

Committee’s initiative

Delegation’s

LAC Initiative

Regional Publications

“Flagship”

Thematic

Political Engagement

Country Reviews

Start-ups

SMEs

Start-ups

Reg/P.Gov

Regional Centres M.Tax

Ctre

PAC

MEX Pub. Aff / Dissemination Cap. Building

In the coming years the OECD will work towards providing

a more strategic framework to better support the region in

its institutional, structural, social and green reforms

SOE CGR SBO A-C

INV TAX

COMP

H2O INN

LEO LAC

EcF

LR@G LG@G LPO LGGI PISA’L

COMP

INV INNOV A-Br Eval

CorpG

SOE Water Gov

MWRH

Start-ups

SMEs

Start-ups

Reg/P.Gov

Going Institutional Going Structural Going Social Going

Green

Horizontal

Comptroller General

Min. Finance Min. Economy / Trade

Min. Edu + Science/Tech

Mins. Soc / Health /Dev

Min. Env+

Secto

r S

pecific

Currently, some “Key Projects” have

extended our key frameworks to the region

OECD Flagship publications

Key topic publications

…produced by the OECD for the region…

…in partnership with 1… …or more key regional organisations

GfG Latin

America

Currently in conversations

G@G Latin

America

Forthcoming in 2014

Pensions Outlook

Latin America

Forthcoming end 2013

…and OECD presence has gained prominence

in key regional events

The Secretary General presents the Latin American Economic Outlook as part of the official programme of the Iberoamerican Summit with the presence of (from right to left): • the Secretary General of OAS, • the Executive Secretary of ECLAC, • the President of the CAF-Latin American Development Bank • the Minister of Finance of Panama

On the other side of the coin, Latin American countries have

responded very positively through greater participation in

Committees and adherence to OECD Instruments.

Participation in official bodies and adherence to legal instruments

3

8

2 0 1 2 0 1 1 2 2

2 2

4 3

9

0

13

4

2 0 1 3 0 0 0 1 0 0 1 2

2 1

9

6

10

0

0

10

20

30

40

50

60

Bodies

Instruments

On the other side of the coin, Latin America’s society is

more and more aware about the OECD …

7140 6203

12114 14778

2370 3616

4869

4655

5756

8205

9013

8491

0

5000

10000

15000

20000

25000

30000

2009 2010 2011 2012

Latin America Chile Brazil

Number of mentions to the OECD in Latin American media

…is more and more engaged in obtaining access to

OECD information…

232,712

355,177

396,582

513,448

200,000

300,000

400,000

500,000

600,000

2009 2010 2011 2012

Visitors to OECD Mexico Centre Webpage

Mexico 50%

Spain 24%

Colombia 8%

Chile 6%

Argentina 4%

Peru 3%

Ecuador 2%

Venezuela 1%

USA 1%

Uruguay 1%

OECD Mexico Centre Website

Visitors by Country 2012

€400,000

€600,000

€800,000

€1,000,000

Sales from suscriptions to iLibrary and books in LAC

…and more and more engaged with OECD work through

social media

1,835 2,247 7,175

18,930

39,097

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2009 2010 2011 2012 2013

Followers in Twitter @ocdeenespanol

53 208 569

1,504

4,288

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2009 2010 2011 2012 2013

"likes" in Facebook/DatoOCDE

In sum…

• Latin America and the Caribbean had during the last decade one of its best economic performances, with GDP growth averaging 5%

• Much of this growth was owed to the commodity-prices boom during the last decade, but also, to some extent, to better policies, notably the macroeconomic and financial areas

• Notwithstanding, the current post-crisis economic environment is affecting the region and evidences the need to avoid the “commodity trap” and engage in structural reforms

• In the coming years, the “better policies” part of the equation is likely to play a more important role in the development of the region

• In that context, the relationship of the region with the “hub of best practices”, the OECD, becomes highly relevant

In sum…

• The relationship of the OECD with the LAC region started (formally) as a regional approach in 2001, then gained a relevant momentum with the launch of the LAC initative in 2009

• The relation with the region is very dynamic. Key drivers are: • 2 Member Countries (Mexico and Chile) • 9 Members of the Development Centre (Argentina, Brazil,

Chile, Colombia, Costa Rica, Mexico, Panama, Peru and the Dominican Republic)

• 1 Accession candidate (Colombia) • 1 Key Partner (Brazil) • 1 Intensified Co-operation Programme (Costa Rica) • Possibly 1 forthcoming Country Programme (Peru) • higher participation in Committees and Bodies, and

adherence to OECD Instruments.

In sum…

• The amount of work in the region is very significant, with today:

• 9 regional networks with different degrees of development, engaged in an emerging policy dialogue

• 23 projects in the region in 2013 (5 regional projects, 13 country specific, excluding Mexico and Chile, and 5 incorporating selected countries from the region)

• A number of annual key events, including the IDB-OECD LAC Forum, the participation in the Iberoamerican Summit and other key regional events

• The LAC society is increasingly aware about the OECD, using

OECD information and participating in social media

Thank you

“Now this is not the end.

It is not even the beginning

of the end. But it is, perhaps,

the end of the beginning”

And as Wiston Churchill said:

www.oecd.org/latinamerica