In Latin America and the Caribbean, a region historically marked by financial exclusion, a rapid shift to digital banking in the last decade has created new opportunities for credit provision to underserved populations. But the transformation, accompanied by a reduction in traditional banking infrastructure, such as physical branches, is not without its risks and … [Read more...] about What Happens to Small Firms When Big Banks Go Digital?
Razvan Vlaicu
Razvan Vlaicu is a senior economist in the Research Department at the Inter-American Development Bank. His research interests are in public economics and political economics, with a focus on the role of governance and institutions in economic development. He received his Ph.D. in Economics from Northwestern University, taught economics at the University of Maryland, and held short-term positions at the Kellogg School of Management and the World Bank. His research has been published in journals such as the Review of Economic Studies, American Political Science Review, Journal of International Economics, and Journal of Public Economics.
The Governance Dimension of Persistent Inequality in Latin America
Despite decades of democratic governance and policy reforms, economic inequality in Latin America remains a stubborn reality. Concentrated income and wealth among the richest 10% of the population has left the poorest 10% with less than 2% of total income. The disparities have endured for the last 30 years, even in relatively stable democracies like Chile, Colombia, and … [Read more...] about The Governance Dimension of Persistent Inequality in Latin America
Why Are Remittance Costs Still High?
Personal remittances from migrant workers are disproportionately important to the economies of Latin America and the Caribbean. Home to only 8% of the global population, the region receives 18% of global remittances, and since 2020 remittances there have grown more than twice as fast as remittances globally. In some of the region’s poorest countries, remittance receipts amount … [Read more...] about Why Are Remittance Costs Still High?
Leveraging Foreign Remittances for Financial Inclusion
Personal financial transfers made by foreign migrants - known as remittances - are common for countries with high levels of economic migration. Yet, in many cases the transfers occur outside the banking system. This keeps remittance recipients from accessing safe financial services, such as savings, credit, or insurance, that improve their economic condition. Mexico is a … [Read more...] about Leveraging Foreign Remittances for Financial Inclusion
Reducing Extreme Weather Impacts on Rural Children through Financial Inclusion
Heavy rainfall and long droughts in many parts of the world have become more frequent and intense with changes in climate. They have caused crops to wither in the field or be washed away, disrupted water supplies, harmed livestock, damaged farm equipment, and upended agricultural infrastructure. Rural families whose livelihoods depend on land and natural resources are the most … [Read more...] about Reducing Extreme Weather Impacts on Rural Children through Financial Inclusion