In the early 1800s, the Prussian scientist and explorer Alexander von Humboldt wandered the streets of Latin America and wrote of his astonishment at the misery and wealth; the "nakedness" and the “luxury", the "immense inequality of fortune." Today, that image of inequality endures. The region, along with Sub-Saharan Africa, is the most unequal in the world. But things are … [Read more...] about Latin America: The Story Behind Falling Inequality
Macroeconomics and Finance
When Expectations Push a Country to Default
Countries have long relied on the issuance of debt to finance their expenditures and investments. However, it can be risky. Episodes such as the worldwide debt crisis of 1983, with its dramatic effects on Latin America, and the more recent European debt crisis, show that countries need to be cautious when choosing their debt levels. High levels of debt coupled with periods of … [Read more...] about When Expectations Push a Country to Default
The FinTech Boom: China vs Latin America
Over the last five years, a new wave of upstarts has burst the confines of traditional finance. These are far from the hallowed institutions of classical pillars and marble. Rather they are children of Silicon Valley, exploiting the latest in digital technologies to offer everything from online shopping and payments to lending and wealth management. Known collectively as … [Read more...] about The FinTech Boom: China vs Latin America
Macroeconomic Challenges for Latin America and the Caribbean
As the October 2017 meetings in Washington wind down, the good news is that Latin America and the Caribbean is out of recession and set to grow at 1.2% this year. Only three countries (Suriname, Trinidad and Tobago and Venezuela—of the 26 borrowing IDB members) will post negative growth, as opposed to seven countries last year (the other four in recession last year were … [Read more...] about Macroeconomic Challenges for Latin America and the Caribbean
A Strong Party System and Peace in El Salvador
By Mark P. Jones In January 1992, bitter enemies on El Salvador's left and right met in a colonial era castle in Mexico City, shook hands and brought an end to a 12-year-long civil war that had claimed 75,000 lives and displaced one-fifth of El Salvador's population. Today, 25 years later, the right and left remain starkly divided in El Salvador, and the country is among the … [Read more...] about A Strong Party System and Peace in El Salvador