As the October 2017 meetings in Washington wind down, the good news is that Latin America and the Caribbean is out of recession and set to grow at 1.2% this year. Only three countries (Suriname, Trinidad and Tobago and Venezuela—of the 26 borrowing IDB members) will post negative growth, as opposed to seven countries last year (the other four in recession last year were … [Read more...] about Macroeconomic Challenges for Latin America and the Caribbean
In the wake of its banking and economic crisis of 2002, Uruguay took some bold steps. Unlike other countries that squandered the commodities boom of the subsequent years, delaying fiscal reforms and, in many cases, worsening their long-term fiscal stance, the country embarked on a series of integral reforms in virtually every policy area, from public management systems to … [Read more...] about Should Reform Tackle Rules and Institutions Together?
Government capacity is in part the ability to hit the long ball, to have long-term policies that look beyond the next election and the next change in administration. In economic policy, as in social policy and so many other areas, it can make all the difference. Unfortunately, in too many countries of Latin America and the Caribbean winning the next election and installing … [Read more...] about When Government Capacity Creates Economic Options
By Mark Hallerberg Recently, there has been renewed interest in incorporating fiscal rules directly into constitutions. In 2012, the signatories of the so-called "Fiscal Compact" in Europe were expected to introduce a balanced budget rule that would "preferably (have) constitutional provisions." Those signatories included 25 of the current 28 member states of the European … [Read more...] about Fiscal Discipline: Can Constitutions Help?
Many emerging economies, particularly in Latin America and the Caribbean, are facing growing debt, fiscal deficits and low growth. Given the direction of debt-to-GDP ratios, many countries are choosing “adjustment” to maintain sustainability. In this blog, I offer 10 priorities that might guide a period of Considerate Consolidation. Priority 1: Speed. If output is at potential … [Read more...] about How to Adjust: 10 Priorities for Emerging Economies