The Economic Commission for Latin America and the Caribbean (ECLAC) has identified three structural traps that hinder development in the region: one of low capacity for growth and transformation, another of high inequality, low social mobility and weak social cohesion, and a third of low institutional capacity and ineffective governance. This third trap is particularly important for the analysis in this document, as it limits the effectiveness and continuity of public policies and reduces the scope for adapting them in the face of change and uncertainty.

The document posits that the critical question is not only “what” must be done for transformation, but also “how” to do so in a context of fragile institutions, political fragmentation and urgent economic, social and environmental demands. To this end, it sets out the approach of technical, operational, political and prospective (TOPP) institutional capabilities, a new analytical and operational paradigm for managing transformations.

These capabilities are not understood as static attributes, but rather as critical, dynamic and interdependent functions that can translate information into public action, enable effective implementation, underpin political legitimacy and anticipate disruptions and possible futures. They must be treated as a living system if institutions are to overcome the trap of institutional weakness and move towards productive, inclusive and sustainable development in the region.