All levels of government will have to learn to spend more wisely
The (In)Efficiency of Public Spending
Public expenditure in Latin America and the Caribbean grew on average 7 percentage points during the past 20 years—an increase that, unfortunately, is not reflected in a similar increase in quality physical and human capital, or lasting social outcomes. This is particularly the case in countries where public expenditure increased the most, which today are struggling with fiscal sustainability and low growth. Big and small countries alike have experienced huge problems achieving efficiency.
Given that public budgets in all Latin American and Caribbean countries are likely to remain tight for some time to come, all levels of government will have to learn to spend more wisely. Growing citizen concerns, aging populations, tax burdens that have reached efficiency limits, plus international economic volatility have put pressure on governments to increase the value for money of public services. Read more.