Search
The future of Latin American youth is at risk in the coming years, and with it, levels of poverty, inequality and even social stability. A report by Ayuda en Acción and the Economic Commission for Latin America and the Caribbean (ECLAC), a United Nations agency, projects that by 2030 more than 70% of young people in the region will work in the service sector, in a context of increasing informality and job insecurity. Current cuts in cooperation are aggravating the situation, further weakening the possibilities for inclusive development of young people in the región.
“The situation was worrying before the cuts, but now we could be facing a social crisis. With less investment in education, training and youth employment, millions of young people will be trapped in poverty or will be forced to migrate and face restrictive and aggressive policies,” warns Alberto Casado, Director of Institutional Relations at Ayuda en Acción.
If it finally comes to pass, one of the cuts that could affect Latin America the most is that referring to funds that came from the United States Agency for International Development (USAID). According to official data on US foreign aid, in 2024 USAID distributed more than 36 billion dollars in global aid. Of this sum, almost 2 billion dollars were directed to initiatives in Latin America, representing a fundamental pillar for various programs. In addition to this, Latin America was already out of focus for many European international donors, with the aggravating factor that, in general, more key donor actors such as France, Germany or the United Kingdom have already announced cuts in their ODA budgets for the coming years in favor of defense budgets.
According to the study by Ayuda en Acción and ECLAC, the rapid expansion of the service sector expected in the coming years presents a risk: most of these jobs are developed in conditions of low productivity and job instability. In the absence of adequate policies, there could be upward pressure on unemployment and precariousness rates, especially in urban areas. This prospective scenario is now further aggravated by the consequences of cuts in international cooperation.
Europe, facing the urgency of a strategic partnership
In the face of the current crisis in funding for cooperation, new opportunities are opening up at a global level. According to Ayuda en Acción, in a context of growing global instability, Spain must continue to be committed to development cooperation in the region and play a leading role within the European Union in order to strengthen the strategic partnership between Latin America and Europe. Committing to programs of educational, labor and social cooperation is key to promoting this strategic partnership. It is not only a question of mitigating the possible risks of social instability but also of exploiting the opportunities that the green and digital transition offers to the youth of the región.
Presentation of the report in Madrid
This message was disseminated on Wednesday, April 9th at the offices of the Parliament and the European Commission in Madrid, at the event Training and youth employment in Latin America: for a development that generates opportunities in the current context of financing for development, organized by Ayuda en Acción and ECLAC. The aforementioned prospective study was presented at this event, and has already been presented to Latin American (Colombia, November 2024) and European institutions (European Parliament, February 2025).
The event was attended by the Secretary of State for International Cooperation, Eva Granados, who emphasised “the decisive moment for the relationship between the European Union and Latin America and the Caribbean [...]. We have to analyse what each actor has to do. The important thing is to know what values we share, what we want for our youth and, therefore, what policies and alliances we have to make”. Granados also highlighted the importance of the work of Spanish Cooperation and its partners with organizations such as Ayuda en Acción to work for equality, development and the promotion of rights.
Education and training, keys to the future of young people
Mariana Huepe, lead researcher on the report and Economic Affairs Officer at ECLAC, stressed that “investing in youth is the smartest thing for Latin America”. Following the conclusions of the study, she pointed out that “education and job training play a fundamental role. Young people are central agents of the structural change that the region requires to escape the trap of low growth, high inequality and social cohesion,” she said during the event.
For his part, the Chairman of Ayuda en Acción, Rafael Dezcallar, pointed out the “transformative power of education and employment in the lives of individuals and communities [...]. We have seen how investment in these areas can break cycles of poverty and generate sustainable development, provided that cooperation strategies are built with the participation of all the actors involved and, above all, prioritizing the needs of the most vulnerable groups”.
The conference also highlighted the importance of the upcoming International Conference on Financing for Development (June 30 to July 3, Seville): “It is a key moment for multilateral solidarity, where we are going to say that we are more and that we are right when sustainable development is important for all countries,” concluded Granados.
