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Governments can use artificial intelligence (AI) to design better policies and make better and more targeted decisions, enhance communication and engagement with citizens, and improve the speed and quality of public services. The Latin America and the Caribbean (LAC) region is seeking to leverage the immense potential of AI to promote the digital transformation of the public sector. The OECD, in collaboration with CAF, Development Bank of Latin America, prepared this report to help national governments in the LAC region understand the current regional baseline of activities and capacities for AI in the public sector; to identify specific approaches and actions they can take to enhance their ability to use this emerging technology for efficient, effective and responsive governments; and to collaborate across borders in pursuit of a regional vision for AI in the public sector. This report incorporates a stocktaking of each country’s strategies and commitments around AI in the public sector, including their alignment with the OECD AI Principles. It also includes an analysis of efforts to build key governance capacities and put in place critical enablers for AI in the public sector. It concludes with a series of recommendations for governments in the LAC region.

Connectivity is the backbone of the digital transformation, and as such, policies and regulatory measures that foster access to high-quality communication services at competitive prices are key. This review provides a comprehensive examination of Brazil’s communication and broadcasting sectors, highlighting areas for regulatory and policy reform that can help ensure a successful and inclusive digital transformation. It analyses market performance of the communication and broadcasting sectors, as well as underlying policies and regulations. Based on its findings, the report recommends actions in five key areas: improving the policy and regulatory framework; overhauling the taxation, fees and tariff framework; improving market conditions; fostering competition in communication and broadcasting markets; and strengthening national policies and evidence-based policy making. These areas should be addressed simultaneously, in order to ensure a holistic approach to reform.

This paper studies the potential drivers of governments’ approval rates in 18 Latin American countries using Internet search query data from Google Trends and traditional data sources. It employs monthly panel data between January 2006 and December 2015. The analysis tests several specifications including traditional explanatory variables of governments’ approval rates – i.e. inflation, unemployment rate, GDP growth, output gap – and subjective explanatory variables – e.g. perception of corruption and insecurity. For the latter, it uses Internet search query data to proxy citizens’ main social concerns, which are expected to drive governments’ approval rates. The results show that the perception of corruption and insecurity, and complaints about public services have a statistically significant association with governments’ approval rates. This paper also discusses the potential of Internet search query data as a tool for policy makers to understand better citizens’ perceptions, since it provides highly anonymous and high-frequency series in real-time.

Digitalisation is transforming the world of work and societies, and creating opportunities to learn and develop skills in new ways, times and places. The adoption and use of digital technologies can help Latin American countries close the skills gap with more advanced economies. Making the Most of Technology for Learning and Training in Latin America demonstrates how Latin American countries can realise the potential of new technologies for skills development in schools and all stages of life. It identifies barriers to accessing ICT infrastructure and connectivity limitations in Latin America, and provides recommendations on how they can be overcome to ensure that all students and citizens can benefit from new technologies for learning. The report explores the relationship between technology use in initial education and students’ performance in Latin America, and how policies can best support teachers as digital tools enter their classrooms. Digitalisation provides new opportunities for lifelong learning and this report examines the potential of open education and MOOCs in reaching those adults who are most in need of training in Latin American countries.

This publication presents the findings of the OECD review of SME and entrepreneurship policy in Brazil. SMEs play an important role for economic growth and social inclusion in Brazil, accounting for 62% of total employment and 50% of national value added. However, productivity gaps between SMEs and large companies are wider in Brazil than in the OECD area, which is also the result of low innovation and export propensity among Brazilian SMEs. Business ownership and business creation are common, but growth-oriented entrepreneurship is much less widespread. Brazil’s SME policy is enshrined in the 1988 Federal Constitution, which grants to micro and small enterprises a preferential treatment in different policy areas (e.g. tax and labour law). Brazilian SME policies are, therefore, mostly aimed at this constituency, whereas mid-sized firms are largely missing in the national policy debate. Simples Nacional, a preferential tax and regulatory regime, is the main federal SME policy, but Brazil also operates a large number of targeted programmes for SMEs. This report provides policy recommendations to enhance Brazil’s SME and entrepreneurship performance, covering, among others, innovation policy, export support, access to finance, and women’s entrepreneurship.

Like most OECD countries, Brazil has been taking steps towards digital government to ensure that public policies and services are more inclusive, convenient and designed to meet citizens’ needs. This report takes stock of the progress made by the Brazilian government, based on good practices and principles in OECD countries, and provides recommendations to help Brazil drive its digital transformation of the public sector.