Even in the midst of a global financial crisis, Latin American and Caribbean economies find themselves in better condition than in years past. Latin America must seize this opportunity to design and implement good public policies. The greatest of the long-term objectives of Latin American states remains development: economic growth and structural change that is rapid, sustainable and inclusive. In particular, governments must reduce inequalities in income, public-service delivery and opportunities, as well as promote the diversification of economies, often concentrated on a few primary-product exports.

Improved efficiency of public administration is crucial to address both the short-term and long-term dimensions of these challenges. The real change, however, will come if Latin American and Caribbean states carry out meaningful fiscal reforms, making them not only more efficient but also more effective. The increased effectiveness of fiscal policy holds the promise to provide resources needed to address the key challenges of economic development. Three key priority areas for investing additional resources have been highlighted by many governments in the region for their potential to raise competitiveness and social inclusion: education, infrastructure and innovation. In each of these areas, more efficient administration and more effective strategic action is needed from states.

Acronyms and abbreviations
Executive summary
Chapter One. Macroeconomic overview
-1.1. Introduction
-1.2. From recovery to expansion
-1.3. Inflationary pressures and price increases of primary products and fuels
-1.4. Capital inflows: challenges to stability
-1.5. Challenges for macroeconomic policy 
Chapter Two. Public administration for development
-2.1. Introduction
-2.2. Key aspects of public administration
-2.3. Challenges of public administration in Latin America
-2.4. New paradigms and pragmatic responses
-2.5. Policies to improve public administration
Chapter Three. Fiscal policy reform
-3.1. Introduction
-3.2. Main trends in the region’s public finances
-3.3. Fiscal policy and income inequality
-3.4. Towards a strong social contract and an improved fiscal pact
Chatper Four. Reforming education systems
-4.1. Introduction
-4.2. Trends in education: coverage, performance and spending
-4.3. Education reforms in Latin America
-4.4. Towards a new agenda of education reforms
Chaper Five. The State and reform of public infrastructure policy
-5.1. Introduction
-5.2. T he role of the State in transport infrastructure
-5.3. T he role of the State in the development of telecommunications infrastructure
-5.4. T owards greater effectiveness of infrastructure policies
Chapter Six. Better institutions for innovation and productive development
-6.1. Introduction
-6.2. Main trends in innovation and productive development
-6.3. Modernising the State to promote innovation: what progress has been made in the region?
-6.4. Better governance for better policy