ÐÓ°ÉÂÛ̳

Central banks will need to maintain a firm grip on inflation to enhance monetary policy credibility and allow more accommodation over the next two years. Fiscal policy makers will need to consolidate public sector accounts while finding space to fund priority and viable public investment and social programs. They also need to address the high cost of debt service and ensure debt sustainability. Debt management practices that put an emphasis on transparency and more concessional sources of financing are critical. 

Addressing fiscal and debt sustainability risks through domestic resource mobilization and greater spending efficiency requires careful attention to the quality of public services and investments. This starts with transparent and accountable spending decisions, including independent reviews to ensure that public projects have met their targets.

Accelerating inclusive growth and creating high-quality jobs will require a transformation of the region’s education system, with a focus on two interrelated pillars that support skills development: providing a solid foundation of basic skills for all children, and equipping the workforce, including the youth, with skills relevant to an evolving global economy, including in nascent digital and green economic sectors.  

This will require focusing on pre-primary education and paying close attention to literacy and numeracy targets. Investments in early childhood development are among the most cost-effective interventions for achieving targets later in a student’s life, with earlier investments yielding higher returns. These should complement investments in nutrition, health, and social protection, to create a robust foundation for lifelong development and avoid developmental delays.

Integrate education strategies with wider private sector development plans. Supporting entrepreneurship and new startups, allowing small businesses to grow, and attracting larger and established firms is essential so that skilled graduates find meaningful job opportunities when they try to enter and advance in the workforce. Efforts should also include internships and job placement support, with particular attention to adolescent girls and women who may face gender-specific barriers.

Make better use of the teaching force, as teacher salaries make up over 90 percent of the recurrent costs of education provision. In many countries, weak teacher deployment systems are the main cause of wide spending inequalities, given that teacher absenteeism and low overall motivation are highly prevalent.