"Decentralized cooperation (DC) is emerging as an important cooperation mechanism for some donors, and refers to international cooperation initiatives between sub-national governments (SNG) through projects and technical cooperation. There are two current experiences: (1) From European Union SNGs to Latin America and Caribbean (LAC) SNGs; and (2) within MERCOSUR cities under the MERCOCIUDADES program.

"While for the last 25 years there has been decreasing social security coverage, Latin America's population over 65 is growing and will triple from 6.3% in 2005 to 18.5% in 2050. Also, labor markets continue to be highly informal, while independent and short-term employment have been increasing, which further complicates coverage and affiliation to retirement schemes. South American pension systems have been diverse in terms of coverage and quality, yet in no case have they incorporated all workers (see figure).