Future-Ready: How Economic Empowerment Can Deliver Social Mobility for Youth

On 24 October 2024, the Australia Latam Emerging Leaders Dialogue (ALELD) and the OECD, in collaboration with Universidad del Rosario, and sponsored by the Australian Embassy in Colombia, hosted Future-Ready: How Economic Empowerment Can Deliver Social Mobility for Youth as an official side-event to the Latin America and the Caribbean (LAC) Third OECD Ministerial Summit on Social Inclusion in Bogotá.

The event began with a panel discussion moderated by ALELD CEO, Sam Bissett, and featured insights from:

- Dominic de Moura McCarthy, Director of Partnerships, ALELD

- Prof. Darwin Cortés Cortés, Department of Economics, Universidad del Rosario

- Daniela Sena, Policy Advisor, OECD LAC Division Global Relations and Cooperation Directorate

Following the panel, a roundtable encouraged participants to delve deeper into these themes and discuss actionable policy solutions, focusing on two key areas:

1. Skills Development and Access to Employment

Participants explored challenges in Colombia’s job market, such as limited access to education and low wages, especially in rural areas.

Key Insights:

- Many young Colombians face low wages despite having undergraduate degrees, partly due to a lack of technical skills and limited job opportunities.

- Vocational training and technical careers, which align more closely with job market demands, are undervalued in Colombia, although other countries value their importance more.

- The need for better alignment between basic and higher education and for extending educational resources to rural areas was discussed.

2. Social Innovation and Entrepreneurship

The group discussed the lack of opportunities for Latin American youth, especially in entrepreneurship.

Key Insights:

- Violence and economic inequality in Latin America create significant barriers that hinder opportunities for youth, particularly in entrepreneurship, by preventing alignment between government, market, and educational expectations. 

- The slow pace of digitisation in the region contributes to a poor business operational environment, limiting opportunities for entrepreneurs and hindering economic growth. 

- Building a supportive environment for youth-led businesses, alongside prioritising digital skills development, is crucial for fostering entrepreneurship and improving the region's small business climate.

Policy Recommendations for Latin American and Caribbean Governments

As a result of these discussions, seven policy recommendations have been identified to improve economic and social mobility for young people in the LAC region.

1. Strengthen Educational Pathways: Improve the link between basic and higher education and extend educational and vocational training programs to rural areas.

2. Promote Technical and Vocational Careers: Encourage education institutions to focus on practical skills development and promote careers aligned with job market needs.

3. Support Youth Entrepreneurship: Simplify processes for business creation and implement supportive public policies for young entrepreneurs.

4. Enhance Digital and Business Skills: Expand digital skills training and practical business education, beginning at the high school level.

5. Inclusive Policy Development: Create an inclusive environment where youth voices are prioritised, particularly in policy discussions related to employment, digitalisation, and job creation.

6. Encourage Regional Cooperation: Foster collaboration among governments, businesses, international organisations and educational institutions to align efforts on youth empowerment and social mobility.

7. Support Early Education and Care: Focus on improving early education to equalise opportunities from a young age.