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
Politics and Institutions
Reforming the Civil Service to Win Elections
In the decades-long effort to make civil service bureaucracies more professional, civic coalitions have mobilized; business associations applied pressure; and international development agencies invested huge sums of money. Yet reform has frequently proved elusive. Instead, party-political rather than merit criteria reign in the hiring, promotion and firing of public employees. … [Read more...] about Reforming the Civil Service to Win Elections
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
Riding the Commodities Roller Coaster in Latin America
Commodity booms and busts are nearly as old as the discovery in Latin America of copper, coal and oil. But after the exhilarating rise of commodity prices during 2004-2012, the most recent descent, with its painful manifestations of contracting economies, fiscal deficits, currency depreciations and inflation, has struck the region particularly hard. But how hard? And why? A … [Read more...] about Riding the Commodities Roller Coaster in Latin America
IDB Chief Economist Reflects on Region
The LinkedIn page of José Juan Ruiz, the IDB's chief economist, shows not a photo of himself but a drawing by the iconic Spanish cartoonist Andrés Rábago, alias El Roto, depicting an exhausted traveler and emigrant draped over his suitcase, deep in sleep. "The dreams of a nation produce exiles," says the caption over the weary man. It is a fitting observation for Ruiz, a … [Read more...] about IDB Chief Economist Reflects on Region