Within the emerging Latin American consensus on development, human resource investments are considered essential for reducing poverty and integrating economic growth and social reform. Investing in people enables work forces to adapt to rapidly changing markets and share in the benefits of economic growth. By helping the poor become more productive, these investments make the development process more equitable and sustainable.

Human Resources in Latin America and the Caribbean examines investments across the region in education, training, health, and nutrition. A survey finds the region's human resources fare relatively well by international comparison. Historically, high investment levels in some countries are associated with good subsequent macroeconomic performance. However, important gaps and inadequate investment in recent years are cause for concern.

The study points to the impact of human resource investment on productivity and distribution and examines how changes in human resource policies--particularly those affecting the delivery of social services--could substantially improve returns in several key areas of development. Proposed changes include granting symmetrical policy treatment to private and public suppliers, and devising incentive schemes through markets or voucher systems.