The EU has allocated an initial amount of €9.5 million to the regional instrument, which will be combined with ECLAC and OECD resources for a total of €16 million.
The 'Facility for Development in Transition’ will support the design and implementation of public policies to achieve the SDGs, to promote sustainable development as LAC countries transition to higher income levels.
7 May 2018: The EU, along with the Development Center of the Organization for Economic Co-operation and Development (OECD) and the UN Economic Commission for Latin America and the Caribbean (ECLAC), launched a regional instrument for promoting sustainable development as LAC countries transition to higher income levels. The ‘Facility for Development in Transition’ will support the design and implementation of public policies to achieve the SDGs.
The agreement launching the Facility was signed in Havana, Cuba, on 7 May 2018, on the sidelines of ECLAC’s 37th session, by Alicia Bárcena, ECLAC Executive Secretary, Stefano Manservisi, EC, and Mario Pezzini, Director of the OECD’s Development Center. Bárcena noted that 32 of the 33 LAC countries are considered middle income and on the path to development. She said the Facility will enable conversations with EU countries that have gone through such transitions, and the replication of models used in other parts of the world.
The concept of development in transition refers to countries that are achieving higher income levels but continue dealing with structural challenges related to inequalities, mobilization of domestic resources, weak social frameworks, regional disparities, limited capacities for innovation and low economic diversification levels, and other challenges. The regional tool will facilitate increased support for such countries from the EU, through collaboration with LAC countries and multilateral organizations. It also will evaluate the way in which transitions to higher income levels can benefit from improved strategic and policy capacities to achieve the 2030 Agenda for Sustainable Development and SDGs. The Facility will also pilot tailored initiatives to offer new responses to changing realities and challenges.