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By David M. De Ferranti

The basic parts to unlocking the opportunity of expertise to hurry up fiscal progress in Latin the United States and the Caribbean (LAC) are making an investment in schooling, establishing up new applied sciences via overseas alternate and funding, and inspiring deepest area study and improvement. 'Closing the space in schooling and expertise' advises Latin American and Caribbean governments to handle the region's deficits in talents and expertise, and thereby improve productiveness, eventually bettering progress clients. to shut this 'productivity hole' within the area, the document demands a variety of coverage methods and techniques, looking on a country's point of improvement. It identifies 3 revolutionary phases in a country's technological evolution -- adoption, model, and construction -- and observes that guidelines may be designed to handle the actual demanding situations that accompany each one degree. In end, 'Closing the space in schooling and know-how' argues that many nations within the Latin American and Caribbean quarter were bettering schooling and social threat administration platforms in order that they at the moment are able to enjoy the rewards linked to developing better alternate and expertise ties with international locations which are extra technologically complex.

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Others, including Bolivia, Peru, and Costa Rica, have a relative abundance of scientists and engineers. 4 Colombian and Chilean Secondary School Students Perform Badly on International Tests 650 Singapore Mathematics Score, 1995 TIMSS Korea Hong Kong (China) 550 Australia Canada Sweden New Zealand Norway Thailand 450 Colombia 350 8 9 10 11 Log of Per Capita GDP, 1995 Mathematics Score, 1998 TIMSS 650 Singapore Korea Hong Kong (China) 550 Canada Australia Finland Malaysia New Zealand Thailand 450 Indonesia 350 Chile Philippines 7 8 9 10 11 Log of Per Capita GDP, 1995 Note: The line corresponds to the predicted TIMSS score from a weighted regression on log per capita GDP and a constant, with the weights given by population.

8 years). But educational attainment in many Latin American countries is still very low. 1 presents a scatter-plot of the mean years of schooling of the labor force aged 25 and older relative to per capita GDP, as well as the corresponding regression line. (Note that here, as throughout this chapter, the regression includes all of the countries in the world for which data are available—in this case 105 countries. 1 shows that many Latin American countries—especially Venezuela, Colombia, Costa Rica, Brazil, El Salvador, Honduras, Haiti, and Guatemala— have large education deficits.

Of course, differences in skills and “technology” do not explain away all differences in productivity levels. Differences in quality of institutions, depth of financial sectors, macro/fiscal performance, among others well known in growth studies, contribute in an important way to such differences. See Loayza, Fajnzylber, and Calderón (2002). 3. It is important to note, however, that low net enrollment rates at the secondary level are partly the result of high repetition rates and late entry into primary school.

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