Latin America and the Caribbean: From SDG assessment to policy solutions

The assessment of progress towards achieving Sustainable Development Goals (SDGs) 7, 8 and 9 in Latin America and the Caribbean (LAC) reveals mixed results. Although LAC’s performance in energy-related SDG targets is positive and surpasses that of other developing regions, the region lags behind in socioeconomic targets related to economic growth and job creation (SDG 8). One major reason for this is the underachievement in SDG 9 dimensions, which are related to industry and innovation, the two engines of economic development. LAC is the only region where the gap in SDG 9-industry has been rising over the past decade, suggesting premature deindustrialization. Targeted actions are needed to reverse this trend while simultaneously promoting other SDGs. This chapter explores how industrial policy can support this process and showcases examples of effective policies across the region, focusing on opportunities related to energy transition, digitalization, global rebalancing and the growing demand for food and well-being. The policy cases reviewed in this chapter highlight the importance of establishing long-term policies to mitigate seasonal fluctuations influenced by political cycles. This, in turn, requires strong capacity to design policies and mobilize relevant stakeholders.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure