Consider two regions: one ranks high in GDP, equality, government transparency, and health care, the other one lags behind, sometimes by a wide margin. Where do you think people feel more upbeat? The answer is anything but intuitive. Many countries in Latin America knock out Western Europe and other advanced economies with their positive energy. In a recent study, Mariano … [Read more...] about How Latin American Countries Became World Champions of Happiness
Besides stunning landscapes, abundant natural resources, folklore, music and a joyful approach to life, Costa Rica and Ireland have in common openness to internationalization. Both countries illustrate —with different strategies—the importance of the macroeconomic context, institutions, and the trade regime to successfully attract foreign direct investment. Despite the near … [Read more...] about What do Ireland and Costa Rica Have in Common? A World of Possibilities.
Productive development policies (or industrial policies) can prove to be a key tool for a country’s development. Yet, as experience in Latin America clearly shows, they can also create serious problems. Nevertheless, these policies take a variety of forms. The key question is: what types of industrial policies should be adopted and which ones should not? This issue was the … [Read more...] about Productive Development Policies in a Nutshell: A Tale of Two Interventions
Among Latin American nations, Chile has achieved rare success in developing strong macroeconomic fundamentals, a transparent regulatory system, and improving in other indicators of economic and social wellbeing. That should come as no surprise. Chile has good policy features and strong government capabilities. Its congress consists largely of well-educated politicians with … [Read more...] about The Weakest Link: Government Capabilities in Latin America and the Caribbean