How should Latin American countries invest in capabilities to boost their per capita incomes? Research at the IDB suggests that much of the gap in income per-capita levels between Latin American countries and the United States is due not to the amount of capital accumulated. Rather it is a result of drops in the region's productivity levels vis-à-vis the U.S. The trick is … [Read more...] about Jumping to Higher Productivity and Income
Businesspeople seek as much as influence as possible over their government's productive development policies. From many points of view, this makes sense. Company executives experience firsthand the structural problems that prevent them from serving their clients better, accessing new markets and increasing productivity. They know where the information asymmetries lie. If they … [Read more...] about Seating Business and Government at the Table
The fiscal outlook for Latin America and the Caribbean is reminiscent of the story of Joseph, arguably the first documented fiscal policy advisor in the history of civilization. Asked to interpret the famous Egyptian Pharaoh’s dream, in which seven ugly and gaunt cows devoured seven fine and fat cows, Joseph predicted seven years of abundance to be followed by seven years of … [Read more...] about Joseph and the Seven Cows: A Parable for Latin America and the Caribbean
Most countries in Latin America and the Caribbean are running significant structural fiscal deficits and debt levels are rising. At current rates of growth, the unpleasant arithmetic of debt sustainability indicates that unless something changes the continent will soon lose its much heralded “improved fundamentals” and may even risk becoming the “continent of crises” once … [Read more...] about Time to Adjust: But How, and When?