Latin America and the Caribbean is undergoing a transformative shift in digital payments. Between 2019 and 2023, the average number of electronic transactions in the region grew threefold. This surge in the way in which transactions are made in the region coincides with a strong preference for digital payment methods. According to the Inter-American Development Bank's landmark … [Read more...] about Beyond Cash: The Digital Payments Revolution in Latin America and the Caribbean
Diego Vera-Cossio
Diego Vera-Cossio is an economist in the Research Department of the Inter-American Development Bank. His area of interest is development economics. In particular, his research analyzes how different policies help or prevent family businesses from growing in contexts in which access to finance is limited. He is also interested in understanding how different methods of targeting and delivering resources from public programs affect policy effectiveness. Diego, a citizen of Bolivia, received his Ph.D. in Economics from the University of California, San Diego in 2018. He holds a Master’s Degree in Economics from Universidad de Chile and a Bachelor’s Degree in Economics from Universidad Católica Boliviana.
Why Do Workers in Ecuador Go Formal at Age 50? And What Do Pensions Have to Do With It?
In Latin America and the Caribbean, where 55% of workers labor informally, some individuals face a crucial decision throughout their lives: whether to work in the formal or informal sector. This decision has important implications for their wages, the amount of taxes they pay, and their overall financial well-being. It is also crucial in determining whether they qualify for … [Read more...] about Why Do Workers in Ecuador Go Formal at Age 50? And What Do Pensions Have to Do With It?
Can Improving Market Access Spur Small Business Growth and Jobs in Latin America?
While micro and small firms account for a big share of overall employment in Latin America and the Caribbean, they often struggle to grow in part because they lack skills or encounter other difficulties in selling their goods and services to buyers. This limits the size of markets they can access. For example, data from the World Enterprise Surveys shows that only 6.7% of … [Read more...] about Can Improving Market Access Spur Small Business Growth and Jobs in Latin America?
From Empowerment to Inequality: The Tradeoffs of Community-Based Targeting
Local leaders know a lot about the people in their communities, including their level of wealth and need. That can often allow them to distribute resources, like anti-poverty funds, more effectively than far away bureaucracies. But where community members must decide on the basis of multiple, difficult-to-verify criteria, things get murky. How should loans, for example, be … [Read more...] about From Empowerment to Inequality: The Tradeoffs of Community-Based Targeting
Can Digital Payments Boost the Impact of Social Programs?
With tens of millions of citizens receiving cash transfers from social programs each month, Latin America and Caribbean governments have long sought ways to improve payment delivery and boost financial inclusion to improve savings, access to credit, and overall welfare. One attempted solution is encouraging recipients to open bank accounts to receive digital cash transfer … [Read more...] about Can Digital Payments Boost the Impact of Social Programs?