A silver lining that has emerged from the Covid-19 pandemic is that CO2 emissions have decreased dramatically during the lockdowns. But that this is not necessarily good news for climate change. Emission levels are likely to return to previous levels once the lockdowns are lifted because there have not been any structural changes in climate-related policies that will lock in … [Read more...] about Climate Change is a Threat to Economic Growth and to Reducing Income Inequality in Latin America and the Caribbean
Financial markets are in turmoil with the spread of COVID-19 and its consequences for the global economy. Emerging markets suffer particularly acutely in times of financial uncertainty, as global investment portfolios shift to safer asset classes. This means that the COVID-19 shock is creating a “sudden stop” in capital flows for emerging markets. The costs of sudden stops for … [Read more...] about Latin America has experienced sudden stops in the past. The coronavirus takes the challenge to a new level.
The crash on the New York stock exchange in 1929 brought depression to the world. That is probably why when the global financial crisis broke in 2008, some observers thought the contagion originating in New York would again spread south, causing a collapse in Latin America and the Caribbean. But that didn't happen. Why? The region's internal situation in 2008 was "lean and … [Read more...] about How Can Latin America and the Caribbean Avoid the Next Financial Crisis?
Policymakers in Latin America and the Caribbean may be keenly aware that the region's crumbling roads, inefficient energy systems, and inadequate water and sanitation hold their countries back. But efforts to improve these and other infrastructure services get the short end of the stick. When governments reduce fiscal deficits, they consistently shortchange capital spending on … [Read more...] about When Improving Infrastructure Can’t Wait
As the global economy gains strength and Latin America and the Caribbean recovers from recession, the region is actually falling further behind, continuing to lose its share in global GDP and putting in jeopardy the aspirations of its growing middle class The reasons behind this are complex. But low investment and productivity are fundamental factors. They require significant … [Read more...] about Latin America Needs Greater Investment and Productivity. This Is Why