Month – March 2018

Boosting Growth in Latin America and the Caribbean

An IDB reports looks at boosting growth in Latin America and the Caribbean

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 shocks, combined with a lack […]

New National Parks Can Help Latin America Tackle its Drought Problem

millions of hectares in new national parks will help combat deforestation in Latin America

The last few months have been big ones for conservation in Latin America. New and expanded national parks covering millions of hectares have been created, encompassing everything from the towering tepuis and ancient rock art of Colombia’s Amazon to the lowland rivers of the Peruvian Amazon and the temperate rain forests of Chile’s Patagonia. It […]

Minimum Wages and the Fight Against Inequality

Fighting inequality with minimum wages depends on gauging the circumstances and timing

Many policymakers say minimum wage hikes are crucial to reducing inequality. They look at Latin America and see abundant evidence, including the fact that in various countries large minimum wage increases during the commodity boom of the 2000s coincided with large inequality declines. There is certainly some truth to the idea. Minimum wage increases during times […]

U.S. Tax Reform: Challenges for Latin America and the Caribbean

The U.S. tax reform could reduce tax receipts in Latin America and the Caribbean

The massive U.S. reform of corporate taxation that slashed rates from 35% to 21% seeks to increase investment, create jobs, boost wages and spur growth within the United States[1]. But it will unquestionably have global impacts, with likely reverberations for Latin America and the Caribbean. The United States is the world’s largest economy and the […]

Does Political Patronage Necessarily Lead to Bad Hiring?

patronage in government doesn't have to lead to incompetent employees

Patronage is among the least loved of political practices, often synonymous with malfeasance and incompetence. Civic and development organizations rail against it. Numerous studies show that merit-based career civil services, as opposed to discretionary ones, are associated with higher economic growth, lower corruption, and better bureaucratic performance. But patronage, the discretionary hiring of people to […]

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