We environmental economists have long advocated carbon taxes as the fastest and most efficient way to reduce greenhouse-gas emissions from cars and power plants and prevent catastrophic global warming later this century. But carbon taxes can be politically problematic. Witness recent events in France where efforts by the government to increase fuel taxes triggered weeks of … [Read more...] about Can We Reduce Emissions While We Wait for a Carbon Tax?
Politics and Institutions
Tougher Sentences: The Key to Fighting Crime in Latin America?
Latin America and the Caribbean is in a punitive mood. The penitentiary population doubled in 17 countries to 1.2 million between 2002 and 2014 as a result of tougher sentencing of criminals and could triple to almost 3.4 million people by 2030. Citizens, meanwhile, demand harsher sentences. In Chile, one of the region's safest countries, a government-sponsored poll released … [Read more...] about Tougher Sentences: The Key to Fighting Crime in Latin America?
Greater Efficiency and the Path to a Prosperous Future for Latin America and the Caribbean
Latin America and the Caribbean has a difficult puzzle to solve. Growing national income is feeding demands for more and better government services. At the same time, because many governments increased expenditure during the years of the commodity boom and now face less favorable external conditions, they will need to adjust. In a context of external headwinds there is … [Read more...] about Greater Efficiency and the Path to a Prosperous Future for Latin America and the Caribbean
Reforming Regulations that Harm Productivity and Worker Welfare
An uncomfortable reality lies behind Latin America’s poor growth performance: gains in productivity have been anemic over the last three decades. The costs in long-term GDP growth, as well as higher wages and living standards for Latin America's people, are steep. Over the last decades most Latin American nations adopted a broad agenda of economic liberalization and … [Read more...] about Reforming Regulations that Harm Productivity and Worker Welfare
How Latin America Can Be Smarter on Crime
Latin America and the Caribbean confronts a paradox when it comes to guaranteeing the lives of its citizens. The region is wracked by organized crime, gangs, and street violence. It suffers a homicide rate (24 per 100,000) that is four times the world's average and spends a considerable portion of its total budget (5.4%) on citizen security. Yet, it continues to employ … [Read more...] about How Latin America Can Be Smarter on Crime