It is well understood that digital transformation can build trust between citizens and the state. It improves service delivery, transparency, and the efficiency of public expenditure—all of which contributes to greater citizen trust in government. But trust is also critical to allowing the process of digital transformation to occur in the first place, and Latin America, the … [Read more...] about Trust: An Obstacle and an Opportunity for Digital Transformation
Avoiding Economic Long-COVID: Policies to Support Firms and Workers in Latin America and the Caribbean
During the peak of the COVID-19 crisis, governments in Latin America and the Caribbean aided firms and households with support packages coordinated with central bank monetary policy. For many, liquidity injections and flexible financial sector supervision helped ease the pain. While many small firms closed their doors during the crisis, surprisingly few larger … [Read more...] about Avoiding Economic Long-COVID: Policies to Support Firms and Workers in Latin America and the Caribbean
Lessons from the Lost Decade for Confronting Inflation Today
Inflation in Latin America is currently running at its highest level in 15 years. With uncertainty about how it will unfold, the expectations of people and firms are largely de-anchored, meaning distinct from the central banks’ target levels, and thus a potential source of even greater inflation. Meanwhile, as world interest rates rise, countries in the region are finding it … [Read more...] about Lessons from the Lost Decade for Confronting Inflation Today
The Promise of Modern Agriculture for Faster and More Inclusive Growth
The path from agriculture to manufacturing and other high-productivity sectors was long considered the true way to structural transformation and development. By contrast, agriculture was viewed as a technologically backwards sector, with minimal innovation and little capacity to grow national income. That view, however, no longer holds. While there is still plenty of … [Read more...] about The Promise of Modern Agriculture for Faster and More Inclusive Growth
Inflation in Latin America and the Caribbean Needs to be Seen in Context
Rising prices for food, fuel and other household necessities are rattling people throughout Latin America and the Caribbean and hitting poor families already affected by the pandemic especially hard. But if inflation is again haunting the region, and policymakers are worried, it is important to keep the new developments in context. Inflation is far from a regional … [Read more...] about Inflation in Latin America and the Caribbean Needs to be Seen in Context