Latin America and the Caribbean has a difficult puzzle to solve. Growing national income is feeding demands for more and better government services. At the same time, because many governments increased expenditure during the years of the commodity boom and now face less favorable external conditions, they will need to adjust. In a context of external headwinds there is … [Read more...] about Greater Efficiency and the Path to a Prosperous Future for Latin America and the Caribbean
Boosting skills is essential for entering the ranks of the richest nations. Better education and skills, most economists agree, generate the innovation and productivity that lift countries from middle-income to high-income levels such as those enjoyed by the United States and the wealthiest nations in Europe and Asia. Indeed, along with rule of law and well-functioning markets, … [Read more...] about What Do Voters Want: Help or Skills?
Growth in Latin America and the Caribbean has been disappointing. For commodity exporters, the exceptional 2002-2012 boom boosted investment and relaxed fiscal constraints, but many countries made little progress on improving underlying productivity and their medium-term growth potential. In other countries, particularly some in the Caribbean and Central America, negative … [Read more...] about Boosting Growth in Latin America and the Caribbean
Global economic fundamentals appear to be strong. Yet, Latin America and the Caribbean is expected to grow at rather mediocre rates in the coming years. Given recent projections, the region’s share of global GDP will continue to decline. In last year's Latin America and Caribbean Macroeconomic Report, Routes to Growth in a New Trade World, we focused on the benefits of deeper … [Read more...] about Forthcoming IDB Report: A Mandate to Grow
Policymakers have long accepted the central role of innovation in spurring aggregate productivity and growth. They have looked at the arrival of new systems of organization and new technologies, from the steam engine to electricity and the internet, as catalysts to material progress in the modern age. But in doing so, they may have underestimated the importance of another … [Read more...] about When an Excess of Small Firms Hurts Productivity