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From the social contract to the fiscal pact

Updated: Mar 15, 2023

This new social contract must be agreed between the different sectors of society: civil society, trade unions, employers and government, with an open and inclusive dialogue.


In 2022, when the economic recovery in Latin America from the global economic crisis caused by the Covid-19 pandemic was just beginning, the bloody and unexpected invasion of Ukraine brought with it a new global crisis with new problems that postpone economic growth and well-being, thereby increasing the dissatisfaction and discontent of a large part of the population.


This social discontent stems from accumulated tensions in the economic, political and social spheres of our countries, and its intensity varies according to the degree of development of the economy and the degree of development and solidity of each country's institutions. The list of factors that exacerbate these tensions is long: the low quality of the different educational cycles, inefficient state health services, unemployment rates and deficient public institutions, among other factors.


Many analysts agree on the need to create a new social contract to rebuild trust between citizens and the state. A social contract that promotes inclusive economic growth where the state guarantees citizens quality education and health, as well as economic stability that allows citizens to train for well-paying jobs, improving the productivity of the business sector and thereby reducing inequality gaps.


This new social contract must be agreed between the different sectors of society: civil society, trade unions, employers and government, with an open and inclusive dialogue, framed in a Master Development Plan, which promotes sustainable economic growth and the welfare state of citizens through a comprehensive social security system.



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