Latin America will need to invest in training, employment and infrastructure schemes to ensure that the social gains made in Latin America in the last five years are not negated by the economic crisis, the chief economist of the Inter-American Development Bank (IDB) has claimed.

Speaking to the Economist, Santiago Levy warned that unless training and development programs and temporary work schemes are set up to protect employees entering unemployment, the economic growth witnessed in the last five years may be reversed.

The journal notes that many countries on the continent have benefited heavily from the rise in the price of oil and other resources and have attracted substantial investment as a result.

However, with low commodity prices and retracted credit lines for new projects, there is a risk that Latin American economies could slide dramatically.

As such, Mr Levy called on governments to redirect investment back into training and development programmes to keep people in skilled work, while temporary employment schemes should also be implemented.

Recently, Vale's human resources director told the Washington Post that energy and commodity companies in Latin America need to commit to training and development to maintain profitability during the downturn.

Oil and Gas Directory: Training and Development