Creativity and Effort - Not Money - Keys to Reform Ways to Keep Rural Children in School Series: Third of a Three-Part Series. Part 1: April 15 PART 2: April 22 Urban Renewal through Day Care; High-Tech Teacher Training PART 3: TODAY Embracing Minority and Immigrant Students

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In Argentina's Pampa Province, where the high school dropout rate is nearly 40 percent, school officials have come up with a way to bring in parents to talk about their children's needs: Serve refreshments.

"When you fail the very children you're supposed to serve, you're impelled to try new things," says Miguel Angel Tanos, the Pampa's assistant education secretary.

Creative solutions, not just more money, lie at the heart of Latin America's new focus on one of its oldest weaknesses: education. The average child receives only five years of schooling, and without progress in the classroom, the region's recent moves to democracy and economic growth may falter. That's why education was Topic No. 1 at the Summit of the Americas in Chile April 18 and 19. For the United States, it's important that a stable Latin America use better education to extend prosperity to more than a small elite. And many of the problems facing Latin America - from high dropout rates to school violence - also affect the US, especially in cities with large minority populations. Despite annual economic growth of about 4 percent in many countries, Latin America has the world's worst income disparity between the few very rich and the many very poor. "Education in Latin America is in a critical state; it's a serious problem that could endanger the other 'macro' reforms" in the region's economy and political systems, says Jeffrey Puryear, an expert on Latin American education at the Inter-American Dialogue in Washington. Adds Beatrice Rangel, senior vice president at New York's Cisneros Group of Companies, "Two hundred million Latin Americans have such limited education that they cannot even access the prosperity that free markets are creating. That poses a risk not just for the region's economy, but to its democracies as well. Democracies require literate, informed citizens who feel they have a stake in the system." Yet like the perennially failing teenager who one day shows everyone he can make the grade, Latin America's schools are showing signs of "waking up." Part of the pressure for the awakening is coming from businesses. Old state-owned companies that lived off closed national markets didn't care much about an educated work force. Private enterprises that must compete with international competitors do. Pressure is also coming from teachers, parents, and an array of nongovernmental groups. Most Latin countries have passed the test of getting children into school, and they're doing better at keeping them there longer. …