Policymakers in Latin America and the Caribbean may be keenly aware that the region's crumbling roads, inefficient energy systems, and inadequate water and sanitation hold their countries back. But efforts to improve these and other infrastructure services get the short end of the stick. When governments reduce fiscal deficits, they consistently shortchange capital spending on … [Read more...] about When Improving Infrastructure Can’t Wait
Social Issues
Did Changes Among Firms Reduce Wage Inequality in Latin America?
For a long time, economists believed that inequality in the labor market could be explained fundamentally by differences in skills. Workers who were highly educated, experienced and skilled tended to be rewarded better by the labor market than workers who weren't. Firms were essentially irrelevant in this paradigm. Workers were rewarded for their productivity: It didn't matter … [Read more...] about Did Changes Among Firms Reduce Wage Inequality in Latin America?
Does Happiness Sway Elections?
Economic performance has long been considered key to voter behavior. "It's the economy, stupid," said a campaign strategist for Bill Clinton, cementing a view that a government's economic record is what voters care most about. But too much emphasis on the economy may be missing other, no less consequential, factors. A recent study by George Ward of the Massachusetts … [Read more...] about Does Happiness Sway Elections?
Stemming the Tide of Plastic Pollution
When a whale washed up on the shores of the Philippines in March with 88 pounds of plastic inside its stomach, people recoiled with horror. Plastic litter on the beaches and in the oceans is unseemly enough. But the idea of innocent animals dying with shopping bags, rice sacks and other plastic litter inside them seemed altogether too much to bear. Each year an estimated … [Read more...] about Stemming the Tide of Plastic Pollution
As External Challenges Loom, Boosting Growth from Within
Latin America and the Caribbean faces uncertain times. Weaker than expected growth in the United States, together with lower corporate earnings and higher interest rates, could lead to a 2.4% accumulated loss in GDP in our region from 2019-2021. Less demand from China might trigger a drop in GDP over the same period, and Brexit potentially threatens to dampen performance in … [Read more...] about As External Challenges Loom, Boosting Growth from Within