Despite the proliferation of digital technologies in daily market transactions, about 45% of Latin America's population do not use bank accounts, and credit access for individuals and firms is limited. Technologies based on Artificial Intelligence (AI) can help change that. AI can efficiently incorporate big data into credit risk assessments, allowing financial institutions … [Read more...] about Can AI Technologies Help Expand Credit Access?
The Tradeoff in Large Foreign Firms’ Dominance of Export Markets
It is no secret that in many developing countries large foreign firms dominate the export market, giving them immense power to determine the prices at which a vast group of small exporting firms sell their goods. On the surface, this would seem to be a mostly negative phenomenon. In a recent study I conducted, for example, I found that these large foreign buyers impose … [Read more...] about The Tradeoff in Large Foreign Firms’ Dominance of Export Markets
Taking Stock of Thirty Years of Research
The IDB’s Research Department has turned 30, and as I celebrate this birthday, I look back with immense pride on the three decades of critical contributions our department has made to evidence-based policymaking in Latin America and the Caribbean and forwards to the tough challenges we face in a rapidly changing world. Having first joined the department more than 20 years … [Read more...] about Taking Stock of Thirty Years of Research
Hurricanes, Trust, and the Role of Aid: Lessons from Mexico City’s 2017 Earthquake
Hurricanes Helene and Milton barreled into the southeast of the United States in late September and early October eviscerating towns, destroying homes, and killing scores of people in a challenge for both emergency responders and the ability of political institutions to maintain the trust of their citizens. Research has shown that natural disasters often shake the … [Read more...] about Hurricanes, Trust, and the Role of Aid: Lessons from Mexico City’s 2017 Earthquake
How Do Latin American Urban Migrants Fare in their Destination Cities?
Urban migration is a powerful force in the economic landscape of Latin America and the Caribbean. As we highlight in "Rethinking Urban Migration," urban migrants play an important role in the economic vitality of the cities they move to, contributing productive labor, creating jobs, paying taxes, and stimulating local economic growth. For that reason, understanding how … [Read more...] about How Do Latin American Urban Migrants Fare in their Destination Cities?