The Latin America and the Caribbean countries have been experiencing a progressive reduction in mortality rates, significant declines in fertility levels and a marked increase in life expectancy. The demographic transition has led to rapid increases in the proportion of older persons, but it has also opened, for a limited period of time, a window of opportunity to take advantage of the economic benefits of the "demographic dividend" resulting from the decrease in the dependency ratio, mainly due to the decline in the population of children and adolescents.
The national transfer accounts (NTA) represent a methodology of intergenerational economics that allows for a robust approach to estimating the economic impacts of demographic change. Based on the NTA, it is possible to calculate the extent and magnitude of the demographic dividend in its different expressions, as well as the expenditures associated with aging, based on the economic life cycle and the economic support ratio, providing key background information and projections, both for preparing for the economic challenges arising from aging, and for harnessing the dividend in different social sectors (labor, education, health, pensions, etc.) and among different economic agents.
The starting point for the development of the NTA is aggregated economic data, including data from the System of National Accounts (SNA). However, aggregate data have limitations when it comes to measuring economic flows to and from individuals of different age groups within a given country. NTA allow to disaggregate economic statistics according to the age of individuals who produce and consume goods and services in an economy, to quantify the reallocation or transfer of resources through family, government, and market, as well as to evaluate the intra- and intergenerational equity of these systems. In addition, methodological developments based on the NTA, such as the National Time Transfer Accounts (NTTA) and the National Inclusion Accounts (NIA) respectively extend the analysis to time transfers and the socioeconomic level of individuals, thus addressing the gender and socioeconomic inequalities that characterize our societies.
The Latin America and the Caribbean countries have made efforts to develop their respective NTA, and have integrated or are considering integrating these accounts into their national statistical systems, in order to facilitate a more comprehensive assessment and formulation of socio-economic policies towards productive, inclusive, and sustainable development. Since 2007, the CELADE-Population Division of ECLAC has been providing technical assistance to countries in the region and promoting research and studies based on the NTA methodology. In 2022, ECLAC and the United Nations Department of Economic and Social Affairs (DESA) published the Spanish version of the "National Transfer Accounts Manual: Measuring and Analysing the Generational Economy".