Senior policymakers, ministers, academics and experts gathered in Montevideo on 17 and 18 November for the IMF–OECD High-Level Conference “Making Reforms Happen in Latin America”, an event dedicated to discussing how to advance reforms across the region.
The event highlighted both the region’s significant achievements and the structural challenges that continue to constrain growth.
Despite meaningful progress in poverty reduction, education access and macroeconomic stability, Latin America’s GDP growth has averaged only 2.3% since 2000 among OECD members and accession countries in the region—less than half the pace of emerging Asia.
Latin America’s growth underperformance largely reflects weak productivity. Strengthening productivity and unlocking private investment will require bold, sustained structural reforms, in line with OECD’s Economic Surveys and the Foundations for Growth and Competitiveness framework. Main take-aways of the conference were:
Labour markets: reducing informality and strengthening skills
Discussions underscored that persistent labour market challenges—high informalitygender participation gaps, and skills mismatches—remain major barriers to inclusive growth.
Speakers highlighted the need to:
- modernise social protection financing to strengthen formalisation incentives
- reduce non-wage labour costs, particularly for low-income workers
- improve active labour market policies
- better align education and training with economic transformation
Examples such as Costa Rica’s efforts to increase the supply of relevant skills to underpin its investment strategy illustrated how coordinated policies can support better jobs and productivity gains.
Tax systems: broader bases, stronger institutions
The tax session emphasised that Latin America requires tax systems that are fairer, broader-based, and more supportive of productivity and formalisation.
Key priorities included:
- reducing inefficient tax expenditures, particularly in VAT
- strengthening tax administration and state capacity
- simplifying tax systems to improve compliance and investment climate
Brazil’s recent VAT reform showed how consensus-building and predictability can make ambitious changes feasible.
Competition and regulation: a foundation for productivity
Participants stressed the need to improve competition and regulatory quality, central pillars of the OECD’s Foundations for Growth and Competitiveness flagship.
Priority areas included:
- simplifying business creation and licensing
- advancing digital one-stop shops
- strengthening governance of state-owned enterprises
- opening markets to foster private investment
The political economy of reform: building trust and long-term commitments
Across several sessions—including contributions from Andrés Velasco, Mariano Tommasi and Omar Licandro—a key message emerged: many constraints to reform are political, not technical.
Speakers highlighted the importance of:
- capable and credible institutions
- clear long-term strategies
- cooperation across ministries
- strong communication that links reforms to improved public services
Reforms are more likely to endure when supported by broad coalitions and sustained political commitment.
A shared commitment to stronger, more inclusive growth
The OECD will continue working with governments across Latin America to support the design and implementation of reforms that strengthen productivity, competitiveness and social inclusion.
Related documents
Opening remarks by the Secretary General of the OECD
