By: Staff Writer
September 27, 2024
The United Nations Development Programme (UNDP) in conjunction with the Development Bank of Latin America and the Caribbean (CAF) said in its recent Governance for Development report said that the Latin American and Caribbean region “face complex and multifaceted challenges that reflect tensions between economic growth, institutional stability, social inclusion, and peaceful coexistence.”
The UNDP report also said: “In the current context of increasing inequalities and greater sociopolitical tensions, effective democratic governance becomes critical to guide the construction of an improved new normal—one that is more inclusive and responsive to citizens’ demands for distributive justice, social cohesion, and expanded opportunities, as outlined in SDG 16. For instance, effective governance will pave the way for adapting rules of the game, changes in policies and legislation, the formulation of fair and solidarity-based fiscal pacts, and strengthening the state’s capacity to respond to citizens’ demands.
The report outlined two axis for evaluation and deliberation. The first was the “legitimacy of public institutions,” and the second, “focusing on state capacities.”
The report noted with regard to legitimacy of public institutions: “Over the past decade, the legitimacy of democracy has gradually weakened, signaling a call to action. The percentage of people who view democracy as the best form of government has declined from 68 percent in 2012 to 59 percent in 2023.
“Additionally, there is a widespread perception that governments serve only powerful groups: in 2023, 72.5 percent of Latin Americans believed their country is ‘governed by a few powerful groups for their own benefit’.”
With regard to state capacities, “Recent years have seen a consensus among researchers and practitioners on the importance of strengthening these capacities to achieve Sustainable Development Goals (SDGs).
“Countries with stronger institutions have higher GDP per capita and better social indicators, including health, education, and equality, and better protect their citizens, leading to lower levels of external threats, internal conflicts, and homicides.
“Additionally, states with higher capacities respond more effectively to health emergencies, natural disasters, and climate crises.”
The report also said: “In the discussion on social contracts and fiscal pacts, it was identified that effective governance must design, implement, and monitor policies and institutional transformations, as well as incentives under which individuals and organizations act to fulfill the social contract.
“Fiscal pacts, for example, are cyclical agreements that must be implemented with effective governance. A successful fiscal pact, therefore, requires a system of institutions, organizations, and incentives that aligns individual and collective interests towards fulfilling the social contract. In this sense, governance for development must thoroughly understand how different incentives for each type of actor (elites, citizens and organizations) interact within the institutional framework.
“In Latin America and the Caribbean, interpersonal and institutional distrust, corruption, and extreme inequalities are factors that obstruct the transformation of social and cultural norms necessary that make it possible to strengthen the social contract.”