Social Policy for Equity and Productivity

In the sector priority of Social Policy for Equity and Productivity, the CRF Regional Development Goal indicators are linked to long-run measures of human capital accumulation, poverty reduction and productivity improvements. Considerable progress was made in all six indicators over the period (Figure A.1). Extreme poverty, as measured by the percentage of population living below US$3.10 per day, fell from 13 percent to 12 percent. The Gini coefficient used to measure income distribution, fell from 0.55 to 0.50, where 0 reflects perfect equality and 1 perfect inequality.

Educational attainment, as measured by the share of youth aged 15 to 19 that complete ninth grade, rose from 47 percent to 65 percent over the period. Maternal mortality and infant mortality both declined. The observed increase in survival rates represents considerable progress in health. Finally, the improvements in the share of formal jobs out of total jobs from 46 percent to 55 percent demonstrates progress in an outcome identified as central to productivity by the IDB’s 2010 research flagship report The Age of Productivity: Transforming Economies from the Bottom Up.

With respect to output indicators (Figure B.1), targets were met for four out of six indicators in this sector priority. A total of more than 180 projects in 25 countries contributed to progress. For example, Story 2.1 illustrates how a US$37 million sovereign guaranteed (SG) loan in Honduras improved children’s learning by expanding access to pre-school education (Indicator 3.1.1).

Despite multiple contributions in this sector priority area, Indicators 3.1.2 (teachers trained), and 3.1.6 (jobs added to the formal sector) fell short by 27 percent and 41 percent respectively. Although 31 different projects in 18 countries contributed to progress on Indicator 3.1.2, lower-than-expected demand affected achievement of this target because many education projects active during this period focused on school infrastructure rather than teacher training.

In the case of jobs added to the formal sector (Indicator 3.1.6) the target set for 2012-2015 turned out to be unrealistic. As mentioned in Box 2.1, the Bank based this target on a small number of projects that were not representative of current projects. Despite not achieving the target, more than 75 projects in 19 countries contributed to progress on this indicator. Story 2.2 illustrates how a Non-Sovereign Guaranteed (NSG) loan to one of Ecuador’s oldest textile manufacturers helped add jobs in this country.

Figure A.1
Regional Development Goals:
Social Policy for Equity and Productivity
Figure B.1
2012–2015 Output Contribution Indicators:
Social Policy for Equity and Productivity

Development Stories

Story 2.1
To a Great Start

Story 2.2
More than Denim and Profits