Latest news with #Inter-AmericanDevelopmentBank
Miami Herald
2 days ago
- Business
- Miami Herald
School dropout rate reaches 27% across Latin America
June 4 (UPI) -- Latin America is facing an escalating education crisis as school dropout rates continue to climb, affecting not only the region's poorest countries but also those with historically strong public education systems, such as Chile, Costa Rica and Uruguay. In Argentina, despite its educational potential, nearly 40% of the population -- about 17.9 million people -- lives in poverty, a factor that directly impacts school attendance and completion. Statistics show that roughly 160 million people in Latin America and the Caribbean are of school age -- nearly a quarter of the region's total population. About half of them do not complete their education, and many are considering leaving their home countries for the United States, Spain or other developed nations in search of better opportunities. The Economic Commission for Latin America and the Caribbean and other international organizations have warned that the region's dropout crisis poses a serious threat to its development. A report by the Inter-American Development Bank found that 27% of students drop out before completing their education. UNESCO estimates that around 23 million children and teenagers in the region are not enrolled in school. Countries with the lowest dropout rates include Chile (7%), Peru (10%) and Bolivia (16%). The highest rates are in Guatemala (57%), Honduras (53%) and Uruguay (37%). Venezuela's rate is estimated at 27%, while Paraguay and Ecuador report dropout rates of 32% and 28%, respectively. In Mexico, more than 4 million children and teenagers are not in school, and another 600,000 are at risk of dropping out, according to a UNICEF report. The problem becomes more pronounced with age: three in 10 teens aged 15 to 17 are no longer attending school. ECLAC attributes part of the crisis to extended school closures during the COVID-19 pandemic, which lasted more than 70 weeks on average. These interruptions severely disrupted schooling and widened existing inequalities, particularly at the secondary level. Experts agree that school dropout is a multifaceted issue. While the pandemic worsened the situation, studies show the trend predates COVID-19 and is rooted in deep structural problems. Contributing factors include poverty, single-parent or broken families and low parental education levels, all of which push many students to leave school to work or care for family members. Teenage pregnancy is another key factor. Other factors are student disengagement, lack of motivation, disruptive classroom environments and the inability of youth to see education as a path to a better future. Drug use and recruitment by drug trafficking gangs further undermine student retention. Although less prevalent today, the traditional lack of value placed on technical education in the region has also contributed to the problem. Stronger connections between vocational training and the job market could provide a path forward for many young people. Early school dropout significantly undermines economic development across Latin America. Young people who leave school early are less likely to find formal, stable or well-paying jobs, leading to a less skilled workforce and lower productivity. This, in turn, slows national economic growth, reduces competitiveness and hampers innovation. Copyright 2025 UPI News Corporation. All Rights Reserved.
Yahoo
2 days ago
- Business
- Yahoo
School dropout rate reaches 27% across Latin America
June 4 (UPI) -- Latin America is facing an escalating education crisis as school dropout rates continue to climb, affecting not only the region's poorest countries but also those with historically strong public education systems, such as Chile, Costa Rica and Uruguay. In Argentina, despite its educational potential, nearly 40% of the population -- about 17.9 million people -- lives in poverty, a factor that directly impacts school attendance and completion. Statistics show that roughly 160 million people in Latin America and the Caribbean are of school age -- nearly a quarter of the region's total population. About half of them do not complete their education, and many are considering leaving their home countries for the United States, Spain or other developed nations in search of better opportunities. The Economic Commission for Latin America and the Caribbean and other international organizations have warned that the region's dropout crisis poses a serious threat to its development. A report by the Inter-American Development Bank found that 27% of students drop out before completing their education. UNESCO estimates that around 23 million children and teenagers in the region are not enrolled in school. Countries with the lowest dropout rates include Chile (7%), Peru (10%) and Bolivia (16%). The highest rates are in Guatemala (57%), Honduras (53%) and Uruguay (37%). Venezuela's rate is estimated at 27%, while Paraguay and Ecuador report dropout rates of 32% and 28%, respectively. In Mexico, more than 4 million children and teenagers are not in school, and another 600,000 are at risk of dropping out, according to a UNICEF report. The problem becomes more pronounced with age: three in 10 teens aged 15 to 17 are no longer attending school. ECLAC attributes part of the crisis to extended school closures during the COVID-19 pandemic, which lasted more than 70 weeks on average. These interruptions severely disrupted schooling and widened existing inequalities, particularly at the secondary level. Experts agree that school dropout is a multifaceted issue. While the pandemic worsened the situation, studies show the trend predates COVID-19 and is rooted in deep structural problems. Contributing factors include poverty, single-parent or broken families and low parental education levels, all of which push many students to leave school to work or care for family members. Teenage pregnancy is another key factor. Other factors are student disengagement, lack of motivation, disruptive classroom environments and the inability of youth to see education as a path to a better future. Drug use and recruitment by drug trafficking gangs further undermine student retention. Although less prevalent today, the traditional lack of value placed on technical education in the region has also contributed to the problem. Stronger connections between vocational training and the job market could provide a path forward for many young people. Early school dropout significantly undermines economic development across Latin America. Young people who leave school early are less likely to find formal, stable or well-paying jobs, leading to a less skilled workforce and lower productivity. This, in turn, slows national economic growth, reduces competitiveness and hampers innovation.
UPI
2 days ago
- Business
- UPI
School dropout rate reaches 27% across Latin America
June 4 (UPI) -- Latin America is facing an escalating education crisis as school dropout rates continue to climb, affecting not only the region's poorest countries but also those with historically strong public education systems, such as Chile, Costa Rica and Uruguay. In Argentina, despite its educational potential, nearly 40% of the population -- about 17.9 million people -- lives in poverty, a factor that directly impacts school attendance and completion. Statistics show that roughly 160 million people in Latin America and the Caribbean are of school age -- nearly a quarter of the region's total population. About half of them do not complete their education, and many are considering leaving their home countries for the United States, Spain or other developed nations in search of better opportunities. The Economic Commission for Latin America and the Caribbean and other international organizations have warned that the region's dropout crisis poses a serious threat to its development. A report by the Inter-American Development Bank found that 27% of students drop out before completing their education. UNESCO estimates that around 23 million children and teenagers in the region are not enrolled in school. Countries with the lowest dropout rates include Chile (7%), Peru (10%) and Bolivia (16%). The highest rates are in Guatemala (57%), Honduras (53%) and Uruguay (37%). Venezuela's rate is estimated at 27%, while Paraguay and Ecuador report dropout rates of 32% and 28%, respectively. In Mexico, more than 4 million children and teenagers are not in school, and another 600,000 are at risk of dropping out, according to a UNICEF report. The problem becomes more pronounced with age: three in 10 teens aged 15 to 17 are no longer attending school. ECLAC attributes part of the crisis to extended school closures during the COVID-19 pandemic, which lasted more than 70 weeks on average. These interruptions severely disrupted schooling and widened existing inequalities, particularly at the secondary level. Experts agree that school dropout is a multifaceted issue. While the pandemic worsened the situation, studies show the trend predates COVID-19 and is rooted in deep structural problems. Contributing factors include poverty, single-parent or broken families and low parental education levels, all of which push many students to leave school to work or care for family members. Teenage pregnancy is another key factor. Other factors are student disengagement, lack of motivation, disruptive classroom environments and the inability of youth to see education as a path to a better future. Drug use and recruitment by drug trafficking gangs further undermine student retention. Although less prevalent today, the traditional lack of value placed on technical education in the region has also contributed to the problem. Stronger connections between vocational training and the job market could provide a path forward for many young people. Early school dropout significantly undermines economic development across Latin America. Young people who leave school early are less likely to find formal, stable or well-paying jobs, leading to a less skilled workforce and lower productivity. This, in turn, slows national economic growth, reduces competitiveness and hampers innovation.
Associated Press
2 days ago
- Business
- Associated Press
Laura Alfaro Joins the Inter-American Development Bank as New Chief Economist and Economic Counselor
WASHINGTON, June 4, 2025 /PRNewswire/ -- The Inter-American Development Bank (IDB) has appointed Laura Alfaro as Chief Economist and Economic Counselor following a competitive selection process. Ms. Alfaro brings to the Bank extensive economic research and public policy expertise in Latin America and the Caribbean. The appointment strengthens the IDB's Research Department as a leading voice on the region's most pressing challenges—including productivity and competitiveness, private sector led growth, technology and AI, public sector efficiency and fiscal sustainability, financial inclusion and innovations, resilience, and energy supply, poverty, and inequality, among others. The department will contribute to implement the IDBImpact+ vision, embedding economic analysis more directly into operations, policy, and strategy. 'We are very happy with Laura's appointment which coincides with the implementation phase of IDBImpact+, a new chapter for our research department at the IDB group,' said IDB President Ilan Goldfajn. 'Research and knowledge are at the center of our strategy—that strives to shape the public debate and embed the research with our operations to concretely serve the region in our joint priorities.' 'It is an honor and a great joy to join the Inter-American Development Bank as Chief Economist and Economic Counselor. Knowledge only makes sense when it becomes impact. Today, more than ever, our region needs bold ideas, rigorous analysis, and genuine collaboration to turn data into decisions that improve lives. I look forward to working alongside an extraordinary team to contribute to that purpose at this turning point for our region,' said Alfaro. Ms. Alfaro joined the Bank on June 1, 2025. She was previously a Professor of Business Administration at Harvard Business School and served as Minister of National Planning and Economic Policy in Costa Rica from 2010 to 2012. A dual citizen of the United States and Costa Rica, she holds a Ph.D. in Economics from UCLA, and degrees from the Universidad de Costa Rica and the Pontificia Universidad Católica de Chile. About the IDB The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region's public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries. Press contact: Rafael Mathus [email protected] +1 (202) 623-1040 View original content to download multimedia: SOURCE Inter-American Development Bank (IDB) Group
Yahoo
29-05-2025
- Business
- Yahoo
Remittance tax could shave half point off GDP in some Latin American nations
ASUNCIÓN, Paraguay, May 29 (UPI) -- A proposed 3.5% tax on remittances from the United States could cost some Latin American countries up to half a percentage point of gross domestic product, sparking concern in nations where money sent to families back home account for a significant portion of economic output. On May 22, the U.S. House of Representatives narrowly passed a budget bill 215-214 that includes a 3.5% tax on remittances sent by non-U.S. citizens. The bill still needs approval from the Senate. A vote has not yet been scheduled, but lawmakers are expected to move forward in the coming weeks with a goal of passing the bill before the July 4 recess. The measure is part of President Donald Trump's proposed fiscal package known as the "Big Beautiful Bill" and would particularly affect countries like Nicaragua, Honduras, El Salvador, Guatemala, Haiti and Jamaica, where remittances account for between 17.9% and 27.2% of GDP, according to the U.N. Economic Commission for Latin America and the Caribbean. Remittances are not only a vital source of foreign currency for these countries, but they also play a critical role in sustaining local economies, especially in rural and low-income communities. While the commission emphasizes that remittances do not resolve structural poverty, they serve as a financial lifeline for many families. Remittances improve quality of life and provide access to essential goods and services. José Manuel Salazar-Xirinachs, executive secretary of the Economic Commission for Latin America and the Caribbean, said a remittance tax could reduce the amount those families receive or even discourage people from sending money altogether. "The Inter-American Development Bank estimates that remittances reduce poverty by up to 5.8% in El Salvador and by 0.8% in Mexico. Put another way, poverty in these countries would be higher without remittances," Salazar-Xirinachs said. In a country like Guatemala, which relies heavily on remittances from the United States, a 3.5% tax on those transfers could have multiple effects. One likely consequence is a negative impact on the balance of payments, which runs a yearly deficit and is offset in part by remittance inflows, Guatemalan economist Juan Roberto Hernández said. A drop in the supply of dollars could also put pressure on the exchange rate and make imports of food, medicine and fuel more expensive. This would likely be accompanied by a decline in consumption and investment. In 2024, Guatemala received $21 billion in remittances, representing about 20% of its GDP. The Inter-American Development Bank estimates that between 70% and 80% of remittances go toward basic needs such as food, housing, health and education. "Any decline would likely contract domestic demand and hurt key sectors like retail and services, with consequences for tax revenues and overall growth," Hernández said. In Mexico, although remittances represent a smaller share of GDP, the country receives the highest volume in the region -- $65.2 billion in 2024. Thousands of families could see their incomes reduced if the 3.5% tax takes effect, Salazar-Xirinachs said. A study by the Center for Latin American Monetary Studies found that about 11% of Mexican households received remittances between July 2023 and August 2024. Those households received an average of $549 per adult recipient each month, a significant amount considering the country's minimum wage is about $450 per month. Remittances from the United States to Latin America totaled an estimated $160.9 billion in 2024, a record for the region. However, while the total volume increased, growth slowed to just 5% -- the lowest rate in a decade due to limited labor mobility and slower job growth among migrant populations. The Trump administration estimates that a 3.5% remittance tax would generate $22 billion between 2026 and 2034, an annual average of $2.7 billion, or roughly 0.01% of U.S. GDP and 0.03% of federal spending. However, experts warn that revenue may fall significantly as senders shift to alternative transfer methods, including cryptocurrencies. Still, recipient families would most likely feel the impact through reduced remittance amounts or higher transfer costs, according to the U.N. economic commission.
