LATIN AMERICA POLICY JOURNAL Fourth Edition 2015 Contents 4 Editor’s Remarks Articles 16 Addressing Inequality: An Commentaries Imperative for the Post-2015 Development Agenda in Latin 6 Latin America’s Challenges America and the Caribbean Sebastián Piñera Alicia Bárcena Ibarra 10 End of Boom Should Mean 22 A Path Towards Sustainable No Bust for the Poor in Latin Growth and Productivity: America Recommendations on Jorge Familiar Enhancing Innovation and Addressing the Skills Gap for Latin American Competitiveness Interview Marisol Argueta de Barillas 87 Facing the Technological Revolution in Latin America: 32 Promoting Inclusive Growth in How to Keep the Pace? Latin America: The Role of Edu- An interview with Diego Molano cation and Skills Vega, Minister of Information Gabriela Ramos Technologies and Communica- tions of Colombia. Juliana Uribe Villegas 39 Social Cohesion in Latin America: The Contribution from EUROsociAL Inmaculada Zamora Staff 47 Housing and Urban Editor-in-Chief Reconstruction Process in Chile Amanda Beaujon Marín After the 27F 2010 Earthquake: Principles, Experiences, and Executive Director Lessons Pedro Rangel Rodrigo Pérez Mackenna and Juan Managing Editor Domingo Riesco Martín Maximino 62 Alternative Education Programs: Content Editor A Force to Address Ecuador’s Juan Riesco Poverty, Child Labor, and Economic Development Web Site Challenges Rohit Kumar Nicholas Kang and Editors Robin Phillips Nico Fenichell Luis Miguel Espinoza 67 Dominican Republic: The Cost of Inaction for a Stateless Child Collaborators Miguel Angel Guevara Without Legal Identification Cristian N. Martinez 75 Remembering History and Reaf- firming Democracy: The Case of the Chilean Transition to Democ- racy By Daniela Martinez 82 Ayotzinapa and Human Rights By Leticia Bonifaz ♻ Printed on responsibly harvested, agency- certified paper containing 50% post-consumer recycle content. ISSN 2327-8609 Editor’s Remarks Latin America remains a region with deep political, economic, and social challenges. During the first decade of this century, the region enjoyed a golden period of eco- nomic growth and social progress that was fueled by the commodities boom. At that time, Latin America managed to reduce poverty, increase employment, close the wage gap, and increase access to health and education. Despite the significance of social progress, inequality is stagnating, and the political crisis continues to deepen. Few countries in the region are prepared to face this less favorable economic en- vironment. In addition to the economic crisis, unprepared countries could also struggle with a representation crisis that affects democracy and human rights. It is our responsi- bility as a region to prevent power abuses. During 2014, the region’s economic growth slowed to 0.8 percent according to the World Bank. Growth is forecasted to recover in the 2015–2017 period by an average of 2.2 percent; however, this rate remains significantly slower in comparison to the 2004–2008 period. Inequality trends represent an additional difficulty to the region’s growth de- celeration. Proportionally, growth deceleration will have an economic impact that will affect the millions that recently left poverty more and the people that remain in poverty conditions the most. Short-term policies to respond to the situation, such as an increase in the government’s expendi- ture, are tempting. However, those policies do not address the underlying issues, and instead of providing mechanisms to protect the more vulnerable populations from the shocks, they create bigger risks for them. Furthermore, the conse- quences of such policies to social progress and economic development would threaten the region’s performance in the long run, and the political impact of those policies would undermine democracy and institutions even more. Additionally, democracy and human rights around Latin America require protection. In 2014, Venezuela’s and Mexico’s governments were involved in shameful human rights violations, such as the arrest of hundreds of students protesting around Venezuela and the Ayotzinapa massacre in Guerrero, which are examples of the deep social and po- litical crises that as a region we need to overcome. The slow economic growth could intensify these conflicts, generate a profound harm to our struggling institutions, and jeopar- dize Latin America’s recent social achievements. 4 LATIN AMERICA POLICY JOURNAL Our challenge as a region is to make last decade’s social progress sustainable and to promote economic, political, and social development. The article selection of the fourth edition of the Latin America Policy Journal addresses the opportunities the region has while facing these challenges. By bringing together former presidents, scholars, academ- ics, and students to discuss topics on inequality, education, reconciliation, human rights, infrastructure, and technol- ogy, we offer a space to present options to look forward to a better future for our region. While it will take decades to overcome inequality in Latin America, the former Chilean President Sebastian Piñera and Jorge Familiar, Vice President of the World Bank for Latin America and the Caribbean, highlight the role of quality education in creating a brighter future, increasing productivity, and as a consequence, increasing growth’s pace and improving the region’s social progress. Consid- ering that in the region access to secondary education is nearly universal, the underperformance is a consequence of the low-quality education Latin Americans have access to. Improving education in the region will enhance human capital, which will have an impact not only in productivity and growth, but it will also strengthen our institutions and democracies and will contribute to breaking the cycle of poverty. Finally, the LAPJ team would like to express our deep gratitude to the David Rockefeller Center for Latin American Studies (DRCLAS), the Malcolm Wiener Center for Social Policy, the Kennedy School Student Govern- ment (KSSG), the Latin American Caucus (LACAU), and the Latin American Conference (LAC) for their generous financial support to make this edition possible. Sincerely, Amanda Beaujon Marin Editor-in-Chief, LAPJ volume 4 5 Latin America’s Challenges BY SEBASTIÁN PIÑera Sebastián Piñera Echenique was born in Santiago, Chile, on 1 December 1949. He is married to Cecilia Morel; they have four children and six grandchildren. He graduated from the Pontifical Catholic University of Chile as a commercial engineer with a major in econom- ics, and he also has a master’s and a doctoral degree from Harvard University. He was professor in the economics faculty of the Pontifical Catho- lic University of Chile and has also taught at the University of Chile, the Adolfo Ibañez University, and the Valparaíso Business School. He has been a consultant for the Inter-American Development Bank (IDB) and the World Bank, and he has worked for the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). In the early eighties, he created Bancard, granting Chilean people access to this new payment and credit system. He became a major shareholder in companies such as LAN Chile, Chilevisión, and Blanco y Negro (sports club), among others. He created several foundations such as Mujer Emprende (www.mujeremprende.cl) and Futuro (www. fundacionfuturo.cl). He also created Tantauco Park (295 acres) on the southern shores of Chiloé Island. For the plebiscite of 1988, he was actively involved in bringing back democracy, voting “no” to continue with the military regime. He was senator between 1990 and 1998. After that, he was the leader of the Renovación Nacional party. In 2005, he was proclaimed the party’s presidential candidate. Sebastián Piñera and Michelle Bachelet faced off in a second round of elections in January 2006, where Michelle Bachelet won with 53.5 percent of the total ballots. The political alliance, Coalición por el Cambio, appointed Piñera as its official candidate for the Presidency of the Republic in 2009.T he calling card of that presidential campaign was direct contact with the men and women of Chile, who were united under two slogans: “Cambio, Futuro, y Esperanza” and “Súmate al Cambio.” On 11 March 2010, at the National Congress, Sebastián Piñera was sworn in as Presi- dent of the Republic of Chile. The government of President Piñera allowed Chile to continue at a steady pace its progress in the construction of a society of real op- portunities, real assurances, and strong values—a society where every Chilean citizen could have the same opportunities to achieve personal fulfillment and to have the assurance to safely take the risks that come with entrepreneurship and innovation. Also, President Piñera contrib- uted to constructing a country where values such as respect for life, 6 LATIN AMERICA POLICY JOURNAL liberty, personal and family responsibility, diversity, and environmental care are guaranteed (www.sebastianpinera.cl). Today, he mostly dedicates his time to the Avanza Chile Foundation (www.fundacionavanzachile.cl), which contributes to the debate of ideas and public policies to expand the opportunities of all Chileans and move towards a more democratic, plural, fraternal, and fair society. Latin America: The Continent of world economy. Third: An inclusive social Hope system, which requires effective tools to fight poverty and achieve greater equal Latin America has always been a con- opportunities for everyone and upward tinent full of opportunities. It has a huge social mobility. territory of over 21 billion km2, twice the If we look at the evolution of per size of Europe. It is a rich continent with capita production in the world during the abundant natural resources, including vast twentieth century, we see that the United reserves of water and energy. Latin Ameri- States, Europe, and in the second half of ca has never seen great wars like those that the century, countries like Korea, Taiwan, destroyed Europe last century. Nor has it Singapore, and China in recent decades, faced religious conflicts as the ones that experienced solid and extended periods of divide many countries of the Middle and growth. However, Latin America lagged Far East, or even racial conflicts that affect behind.