Social inclusion poses a significant challenge for countries in Latin America and the Caribbean, rooted deeply in structural and historical factors. High levels of poverty, persistent inequality, and widespread informality persist throughout individuals' life cycles and are transmitted across generations. Moreover, certain socio-demographic groups are particularly left behind. Adopting a life cycle and comprehensive whole-of-government approach that not only considers the socio-economic characteristics of various stakeholders is essential for well-designed social policies. Empowering women and revisiting productive inclusion are crucial steps to promote both social and gender inclusion, ultimately breaking the inter-generational cycle of poverty and reducing inequality. This integrated approach can also foster mutually reinforced dynamics between economic growth and social inclusion.

In Latin America and the Caribbean, disparities in educational outcomes, coupled with the particular characteristics of their economies that do not generate the expected employment opportunities, pose a major obstacle to social mobility. Recent PISA results in the region reveal marked differences in student performance, highlighting both the urgency of educational reforms and the need for such reforms to be aligned with long-term economic policies. Addressing these disparities implies not only equipping young people with the necessary skills to improve their insertion into the labour market, but also ensuring that transformed productive structures are in place to absorb this skilled labour. Likewise, gender disparities with differences in access and outcomes between boys and girls, as well as segregation in career choices, reinforce the need for specific strategies to ensure equal opportunities. Taken together, an approach that integrates educational reforms and structural economic policies will create a more inclusive and effective system, fostering more equitable and just societies.

Improving the quality of employment and promoting formalisation are key ingredients for improving workers' well-being. In addition, it is equally important to recognise the grassroots economy as an opportunity to foster innovative collaborations between the state and small-scale, spatially focused productive associations through mechanisms such as public-popular partnerships. Given that more than 40% of households in the LAC region are fully dependent on informal employment, it is crucial to closely analyse the socio-economic characteristics of informal work and its potential contributions. The grassroots economy, often marked by informal employment and small enterprises, is vital for many communities in the region and can play a more proactive role vis-à-vis the state. Examples of this are partnerships for the provision of goods and services, through public procurement, where the grassroots economy becomes a key actor. These strategies not only improve the quality of employment, but also empower informal workers, mitigating challenges such as income volatility, social and economic vulnerability, and lack of access to social protection. Tailored approaches that integrate the grassroots economy into broader partnerships with the public sector, and promote formalisation, can generate more effective policy actions to improve living conditions and strengthen productive structures in the region.

Successful engagement of young people in the labour market and society is crucial not only for their own personal economic prospects and well-being, but also for overall economic growth and social cohesion. skills, employment, and social policy measures need to offer young people the opportunity to fulfil their potential and maintain confidence in their future. This session will explore how governments can promote opportunities for young people in Latin America and the Caribbean.

Despite decades of innovative social programmes, social mobility remains stagnant in Latin America and the Caribbean. Social mobility, defined as the change in an individual's socio-economic status compared to that of his or her parents (intergenerational mobility) or within his or her lifetime (intragenerational mobility), is closely linked to equality of opportunity. This involves ensuring that individuals have equal opportunities to succeed in life, regardless of factors such as their parents' socio-economic background, gender, race, ethnicity, place of birth or other uncontrollable circumstances. Education has historically been the most important equaliser of opportunities, and the region has seen a significant increase in educational access in recent decades. However, this access has not been accompanied by an improvement in quality, especially for disadvantaged populations. To address this disparity, it is crucial not only to improve quality and access to education, but also to ensure that education reforms are aligned with long-term economic policies that more effectively connect education supply with labour market needs. Education alone will not be enough if the region's productive structures are not also transformed, allowing economies to generate quality jobs to absorb the growing mass of skilled workers. Improving education and vocational training systems, implementing gender-inclusive policies, particularly in employment opportunities, and promoting careers in STEM fields are necessary steps, but they must be integrated with economic strategies that enable a real connection between education and employment. In addition, solutions must be tailored to the unique challenges faced by the growing number of migrants in the region, including legal challenges and discrimination, which limit their social mobility. This ministerial session will focus on dismantling structural barriers and fostering social mobility for all people in the region, with a comprehensive vision that addresses both education reforms and the necessary economic transformations.

Social and productive inclusion implies that all types of people, enterprises and places have access to economic opportunities and a better quality of life. In Latin America and the Caribbean, the gaps between urban and rural areas are particularly marked, while within large metropolitan areas inequalities are also high. The grassroots and solidarity economy can not only pioneer new business models and the vision of essential services, but also represents an opportunity to strengthen the grassroots economy through partnerships with the state. These public-popular partnerships allow local communities to play a greater role in the provision of essential goods and services, such as public procurement or the construction of infrastructure, including tertiary roads, thus creating pathways to greater economic inclusion. By promoting collaborative mechanisms between the public sector and the grassroots economy, innovative solutions can be generated that not only help to bridge territorial gaps, but also empower people on their way to formal employment and the creation of sustainable enterprises. The social and solidarity economy can be key to integrating the most underserved sectors, especially in rural areas, in a fairer, greener, and more digital transition, while engaging young people and contributing to the strengthening of local communities. This collaborative approach creates an environment where the grassroots economy is not only seen as a vulnerable sector, but as a crucial actor in building a more inclusive and resilient productive fabric.

Informality is a complex and multifaceted phenomenon that affects many countries in the LAC region. The COVID-19 crisis has highlighted the great vulnerability of informal workers and the need to protect them and their families. Although labour formalisation has traditionally been linked to access to social protection, this approach has shown its limits and is being reconsidered. Rather than relying exclusively on formal employment as an enabler of social protection, alternatives are being explored that allow for the expansion of social coverage for all, regardless of their employment status. This implies designing social protection systems that are not linked only to formal work, but that offer universal access and more inclusive mechanisms capable of protecting workers in all their forms. Among the factors that contribute to informality - such as limited access to high quality education and training, or a weak institutional framework - designing more inclusive social protection systems can be key to reducing structural vulnerabilities. This session will discuss innovative strategies for financing and extending social protection, with a view to improving formalisation without making formalisation a requirement for access to social protection.