The region’s oil exporters are enjoying a mild reprieve from devastatingly low prices. For now. While the price uptick may have several causes, the most dramatic contributing factor is the Fort McMurray fire in the Canadian province of Alberta. The wildfire covers an area larger than some of the world’s major cities, and officials have estimated it will take weeks or even … [Read more...] about Happy Days Are Not Here Again
Macroeconomics and Finance
Because Waiting for the Next Boom is Not Enough
Economies grew, millions were lifted from poverty, and social safety nets widened to support a growing share of vulnerable populations. When the United States and Europe experienced sharp downturns during the international financial crisis of 2008 and 2009, some governments in the region were able to increase spending and keep their own economies from slipping into … [Read more...] about Because Waiting for the Next Boom is Not Enough
Better Savings for Better Infrastructure
In 2014 the government of the small and impoverished city of Flint in the United States decided to draw its municipal water from a different river than it had been accustomed to while it waited to connect to a cheaper water system. But the new water was corrosive to water pipes, and environmental officials made a fateful decision not to add chemicals that would protect them. By … [Read more...] about Better Savings for Better Infrastructure
Crime Groups Destroy Economic Diversity
In 2008, a turf war erupted between the Tijuana and Sinaloa drug cartels, leaving tortured and murdered bodies strewn across the landscape near Mexico's border with the United States. As kidnapping surged and homicides surpassed 800 in Tijuana, souvenir and clothing shops shuttered, and restaurants and bars emptied out. The heart of the city—a former mecca for day-trippers and … [Read more...] about Crime Groups Destroy Economic Diversity
Running Out of Time
For decades, Latin America and the Caribbean has been a young region, with lots of people in the workforce compared to the number of elderly. But it is aging. By 2085, the region will surpass Europe as the area of the world with the highest share of elderly and, given current rates of savings, will have insufficient resources to pay for the immense health care, pension, and … [Read more...] about Running Out of Time