Behavioural economics is a key element for the design of better public policies in the region

Within the framework of the III Workshop on public policy instruments based on behavioural economics, the Permanent Secretary of the Latin American and Caribbean Economic System (SELA), Ambassador Clarems Endara, described the understanding of behavioural economics as a key element for the design and implementation of better public policies and development projects in Latin America and the Caribbean.   

"We have learned that phenomena such as overconfidence and optimism, loss aversion, self-control and present bias, give rise to systematic errors that lead us away from rational behaviour. And this is where behavioural economics is key, since it helps us understand these biases for the design and implementation of better public policies and development projects," explained the Permanent Secretary of SELA during the third Workshop on Behavioural Economics organised with the Inter-American Development Bank (IDB) in Guatemala. 

At the opening session of the workshop, the Permanent Secretary of SELA was accompanied by Sergio González, Vice-Minister of Communications, Infrastructure and Housing of Guatemala, and Ignez Tristao, IDB Representative in Guatemala. The theoretical session of the training was held on 09 May and was open to all participants. The practical session, on 10 May, is aimed at Guatemalan public servants. 

"From SELA, we express our ambition for Latin America to become a fairer and more resilient society, with broad access to opportunities to ensure a common welfare that can benefit all, and that our regional cooperation is more efficient in addressing social needs," the Permanent Secretary of SELA said.   

This activity, included in SELA's Work Programme for 2022-2026, aims to train public policymakers in Latin America and the Caribbean in the use of behavioural economics and its tools for the design and implementation of better public policies in the region.