By Julián Messina, Norbert Schady, and Joana Silva Meager economic growth and high inequality are the twin curses of Latin America. But inclusive growth that fights those curses by encompassing everyone, including marginalized and vulnerable populations, is possible. It just requires the right policies. We know, of course, that this is easier said than done. Economic … [Read more...] about Moving Towards Growth and Greater Inclusion in One of the World’s Most Unequal Regions
Macroeconomics and Finance
How Can Latin America and the Caribbean Avoid the Next Financial Crisis?
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?
When Lower Barriers to Firm Creation Translate Into More Resilient Economies
By Alan Finkelstein Shapiro and Victoria Nuguer Registering a business in Latin America is not for the faint of heart. Multiple procedures -- ranging from establishing by-laws and a legal structure to registering the company with authorities -- have to be carried out. Labyrinthine bureaucracies have to be negotiated. Lawyers and accountants are often hired to avoid … [Read more...] about When Lower Barriers to Firm Creation Translate Into More Resilient Economies
The Collapse of Trust and the Rise of Populism
How can we manage Latin America's lackluster economic growth and its problems of inequality? And what are we to make of the lack of trust in institutions and the rise in populism? To answer some of those questions, Andrés Velasco, the Dean of the School of Public Policy at the London School of Economics and Political Science, recently spoke at the IDB as part of the Research … [Read more...] about The Collapse of Trust and the Rise of Populism
When Too Much Choice Distorts Electoral Results
As if we couldn't think for ourselves when it comes to pouring hot liquids down our throats, the warnings about hot tea and coffee are ubiquitous. “Caution Handle with Care I’m Hot,” says one cup. "Caution Contents Hot," says another, with variations on the theme repeated in thousands of restaurants and cafes around the world. Businesses, it seems, don't trust us to be careful … [Read more...] about When Too Much Choice Distorts Electoral Results