Development in transition: Concept and measurement proposal for renewed cooperation in Latin America

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ECLAC

Development in transition: concept and measurement proposal for renewed cooperation...

Introduction

International cooperation has been and remains an essential force in countries’ economic and social progress. The analytical approach underlying it, its operating mechanisms and the institutional scope of its actions have been progressively refined for decades. Thus, for example, in the 1970s it began to incorporate new perspectives and methods in response to the changes being experienced by economies and societies, as reflected in the concepts of South-South and triangular cooperation. In this context, cooperation has reconciled the needs and sovereignty of recipient countries and the interests and perspectives of donor countries, with varying degrees of success. The balance has not always been an easy one to strike, and has required continual renewal of methods and institutions. The need to adapt cooperation to rapidly shifting realities has become more urgent in the context of the great changes, both positive and negative, that the world has undergone in recent decades, such as the sharp reduction in poverty and the increase in average life expectancy; the accelerating technological revolution, essentially in the digital and biological spheres; the occurrence of crises, often environmental catastrophes; and growing dissatisfaction among large groups of the population, expressed in various ways, over persistent and often rising inequality in the distribution of wealth and income. One way of adapting cooperation to new realities is the development in transition approach. This concept treats the development process as an evolutionary continuum in which some problems are solved, as in the fight against hunger, while others emerge, such as growing technology divides, distrust of institutions, environmental degradation and difficulties in moving towards welfare States. The ultimate goal of this evolutionary process is to surmount the middle-income trap in which many developing countries, and in particular most of the countries of Latin America and the Caribbean, currently find themselves. This lock-in manifests itself in a wide array of structural gaps in the economic, social, gender, environmental and other dimensions. The structural gaps approach holds that no single standard classification based on any one gap adequately captures development levels. Countries will rank differently depending on which gap is considered. In particular, the level of per capita income cannot be equated with the level of development, since an increase in per capita income, and thus a narrowing of this gap, does not signify an improvement in the other pillars of development. Linking the insights of the development in transition, middle-income trap and structural gaps approaches provides a useful tool for reorienting international cooperation to make it more effective

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