Knowing how governments spend their resources is important because it reflects their development priorities. Moreover, it allows, especially in lean times, trying and seeing “what can be done to improve growth and maintain recent and perhaps fragile benefits in terms of prosperity and social protection?” as mentioned in a previous publication of this blog. In recent years, … [Read more...] about Public Transfers to Households: Who are the Real Beneficiaries?
Politics and Institutions
Confronting the Risks of Corporate Debt in Latin America
Beginning in the early 2000s, corporations in emerging economies began to massively increase their borrowing in international capital markets. The reasons why this occurred are not completely clear though they most likely involve low interest rates globally and the search for higher yields by international investors. In any case, the surge was dramatic: between 2004 and 2014, … [Read more...] about Confronting the Risks of Corporate Debt in Latin America
Is Being ‘Smart’ About Taxes Contagious?
In recent weeks, the issue of tax avoidance has surged into the United States presidential election. It gained momentum Sept. 26 during the first presidential debate when Republican candidate Donald Trump said that not paying federal income taxes made him “smart.” It moved to the forefront Oct. 1 with the revelation by the New York Times that Trump had declared a $916 million … [Read more...] about Is Being ‘Smart’ About Taxes Contagious?
Colombia: Bringing Fighters Back Into the Fold?
On Oct. 7, Colombian President Juan Manuel Santos became the sixth Latin American to win the Nobel Peace Prize as he was recognized for his efforts to end a 52-year-long civil conflict, the last major war in the Americas. But for supporters of Colombia’s peace process, it was a bittersweet moment. Eleven days earlier, the president had clasped hands with his sworn enemy, … [Read more...] about Colombia: Bringing Fighters Back Into the Fold?
How to Adjust: 10 Priorities for Emerging Economies
Many emerging economies, particularly in Latin America and the Caribbean, are facing growing debt, fiscal deficits and low growth. Given the direction of debt-to-GDP ratios, many countries are choosing “adjustment” to maintain sustainability. In this blog, I offer 10 priorities that might guide a period of Considerate Consolidation. Priority 1: Speed. If output is at potential … [Read more...] about How to Adjust: 10 Priorities for Emerging Economies