Tuesday, November 17, 2020 | 45 minutes | 10:00 GMT
In June 2020, Latin America became the new epicenter of the global Covid-19 pandemic. Beyond the social and health implications, the economic impacts in the region are already palpable: plummeting commodity prices, a significant drop in demand for tourism and transport services and disruptions in global industrial activity and the functioning of global value chains.
The implementation of measures to control the virus has been heterogeneous across the continent, since many livelihoods depend on the informal economy or on formal economic activities that provide daily wages. But despite the differences, some key productive sectors like automotive, leather products, textiles and clothing, and non-metallic minerals were affected across-the-board.
In many Latin American countries the focus has been on containing the negative impacts, particularly on the strong base of Micro, Small- and Medium-sized Enterprises (MSMEs), which operate often in informal markets and often cannot afford to halt their operations. But despite the efforts, it is foreseeable that the disruptions will have long lasting effects, particularly for the manufacturing sector. While the crisis affords an opportunity to promote innovation, firms and countries need to invest in the required technological and productive capabilities. Governments in the region will have to address investments in health, digital transformation and productive capabilities that can contribute to the strengthening of social and economic resilience.
The session explores what the challenges are of reviving the industrial and manufacturing sectors and transforming them to drive innovation and growth post-pandemic.
- Will the pandemic push local sourcing and the regionalization of value chains?
- Which industries are likely to emerge stronger? And which will lose pace?
- What will it take for the region to unlock the potential of digital transformation in manufacturing? And how could this contribute to formalising the informal economy and to the economic inclusion of women and youth?
- What are the strategic elements decision-makers must prioritise? And how can these elements be reflected in effective public policies and norms?
- Does advanced innovation exacerbate the danger of Latin American countries falling into the Middle Income Trap? Can greater regional integration of production and trade overcome this?
- How can 4IR technologies be used to include and integrate MSMEs in global value chains?