Latin America and the Caribbean: Challenges and Opportunities for Sustainable Development

In an increasingly complex and interconnected world, Latin America and the Caribbean find themselves at a crucial crossroads. Since the beginning of the 21st century, the region has faced a series of challenges that have altered its economic and social landscape. The rapid digital transition, growing political polarization, and the impacts of climate change are just a few of the factors that have influenced its development. However, despite these challenges, opportunities also emerge if the region adopts appropriate policies. The arrival of the pandemic and the consolidation of China as an economic power have generated significant disruptions in global economies. This phenomenon has led many countries to rethink their supply chains, promoting schemes like nearshoring and friendshoring. For Latin America and the Caribbean, this reconfiguration can be both a challenge and an opportunity. While international trade has decreased, the region has the potential to attract investments and develop technological capabilities that allow it to adapt to this new reality. However, for Latin America and the Caribbean to avoid being left behind, it is necessary to address three significant gaps. The first is the external gap, which manifests as a limited capacity for growth due to the slowdown in global trade. The second is social, characterized by insufficient creation of quality jobs and the alarming growth of informal labor. Finally, the environmental gap is reflected in the devastation of ecosystems and deteriorating living conditions, exacerbated by climate change. Closing these gaps is essential for the future of the region. Without sustained growth, there will be no improvement in job quality, and without investments in technology, any growth will be fleeting. Therefore, it is imperative that Latin America and the Caribbean develop a growth model that not only promotes economic development but also respects the planet's limits. Incorporating sustainable practices in production and consumption must be a priority. Additionally, the region must focus on income redistribution, ensuring that growth benefits the most vulnerable sectors. This involves implementing social policies that promote gender equality and improve health and education systems. By doing so, not only is social justice promoted, but labor productivity is also enhanced, creating a virtuous circle that can strengthen the economy. In a context of high global uncertainty, adapting to climate change is another non-negotiable condition. The region must reduce its vulnerability to the effects of climate change through policies that integrate sustainability into every aspect of development. This includes transitioning to cleaner energy sources, promoting a circular economy, and adopting digital technologies that minimize environmental impact. To effectively address these challenges, the Universidad Autónoma Metropolitana, the Mexican Ministry of Foreign Affairs, and the Development Bank of Latin America and the Caribbean have convened the seminar "Rethinking Development in Latin America and the Caribbean from Mexico." This event, taking place from September 9 to 11, aims to foster constructive dialogue among academics, officials, and former public servants. The goal is to create a space to discuss and propose policies that respond to the economic, social, and environmental challenges facing the region. The importance of this seminar lies in its collaborative approach. By bringing together experts and decision-makers, it is hoped that concrete proposals will emerge that can be implemented. The creation of a task force to follow up on these discussions is essential to ensure that the ideas discussed have continuity and translate into effective actions. The challenges facing Latin America and the Caribbean are significant but not insurmountable. With a strategic approach that integrates economic growth, income redistribution, and environmental sustainability, the region can position itself on the map of global development. In this sense, the seminar is not only an opportunity for reflection but also a call to action to build a more inclusive and sustainable future.