This decade has seen a return togrowth in Latin America, thanks to macroeconomic stability, structural reform and therenewal of capital flows. However, with a few exceptions, this growth is still far fromvigorous and sustained. In the three years from 1995 until 1997, it oscillated in mostcountries between 2% and 4% annually and, in almost all cases, was too low to preventincreased unemployment.
Even more importantly, renewedgrowth has not yet been reflected in any systematic improvement of social indicators. Inparticular, several ECLAC studies have shown that, while higher growth has helped reducepoverty, it has not lead to better income distribution. Indeed, in many countries this hasworsened compared with the average until the 1970s, and continues to do so, giving LatinAmerica one of the world's worst rates of inequality. The great task pending in theregion, then, is to make the transformation of production patterns compatible with socialequity.
It has been argued that incomedistribution is a long-term problem, and that a central role in overcoming it will beplayed by education policy. ECLAC's recently published
shows that while such policy is essential, it is not enough on its own toovercome the lack of equity so characteristic of development in the region. Certainly,this high degree of income concentration is related to the enormous variation in educationlevels among those with jobs, as measured by the number of years spent at school; but italso has to do with other factors. For example, income distribution from investments iseven more concentrated than education. Similarly, in lower income households fewer familymembers have jobs, while such families also have more dependent children.
As a result, the
argues that, while better education levels and a more equitable distributionof educational opportunities are vital, they are not enough to reduce incomeconcentration. This requires simultaneous policies in the areas of education, jobs,personal wealth and demographics.
Perhaps the most significantfinding in the
is that the expansion of education in the region overrecent decades has not increased opportunities for young people from poor social sectors.If the number of years spent in education by young people between 20 and 24 years old iscompared with that of their parents, average education levels are found to have increasedby three and a half years (the exact figure obviously varies between countries); but, atthe same time, the economy has been demanding ever higher levels of education for the samejob. This indicates that there has been a certain "devaluation", or fallingyield, of education in the labour market and, therefore, as a factor in earning capacity.If this is taken into account, improvements in educational achievement appear much lesssignificant. The study shows that only half of urban young people, and a quarter of thosefrom rural areas, have improved their level of education in comparison with that of theirparents as far as the demands of the labour market are concerned, and in this waygenuinely improved their job opportunities. This is consistent with opinion-poll findingsthat only half of Latin America's young people believe they enjoy greateropportunities than their parents.
The
alsoshows that efforts to increase educational coverage have done nothing to bridge the gapbetween young people from different social backgrounds. In particular, if assessed inrelation to the educational capital of their parents, the educational levels achieved byyoung people in the region have not improved in the last fifteen years, or have done soonly marginally, and in some cases have fallen back. For example, at the beginning of the1980s, the proportion of young people who reached secondary education, and whose parentshad completed between six and nine years' education, was between 33% and 43%. Halfwaythrough the 1990s, this proportion was virtually unchanged at between 36% and 46%.
Furthermore, young people whoseparents have higher incomes earn 30% to 40% more than others with the same level ofeducation and the same jobs. This makes it clear the expansion of education against abackground of inequality does not always translate into equality of opportunities. Even inChile, where a better distribution of educational opportunities has coincided with a moredynamic economy, a positive rhythm of job creation and a resulting reduction of poverty,income distribution has shown no improvement.
What all this demonstrates isthat the challenge of overcoming the problems of equity is complex and requires action onmany fronts, especially those mentioned earlier - education, jobs, personal wealth anddemographics. In the case of education, reforms should aim at ensuring that young peoplenot only complete secondary schooling, but do so at the appropriate age, and that theeducation they receive is of adequate quality. A second goal must be to reduce thegigantic breach between the city and the country, so that children born in rural areas donot have to confront the immense disadvantages they face now. Determined efforts are alsorequired to compensate for the initial disadvantages suffered by children from the pooresthomes, broaden pre-school coverage, retain young people longer in the school system anddeal satisfactorily with the problems of adolescent pregnancy, which so affect theeducational opportunities of both mother and children.