RED 2026 - Chapter 1: A new horizon of opportunities for rural areas

The economic development of Latin America and the Caribbean (LAC) is deeply intertwined with the trajectory of its rural areas. These areas are home to strategic resources for the region, such as food production, energy, biodiversity, forests, and various critical minerals. They are also home to nearly 120 million people and approximately 18 million agricultural and livestock production units, underscoring their importance for food security, the energy transition, and sustainable development. At the same time, these areas face persistent social, economic, and environmental challenges. Poverty, informality, and gaps in access to basic services and infrastructure combine with relatively low levels of productivity, limiting the ability to transform the wealth of their resources into greater opportunities for their inhabitants. This chapter presents a conceptualization of rurality in LAC and analyzes its transformation over the past decades. On this basis, it highlights the main productive challenges and opportunities faced in a context of profound transformations.

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