Posts related to “Saving for Development: How Latin America and the Caribbean Can Save More and Better,” the 2016 edition of the IDB flagship report.

Latin America Needs Greater Investment and Productivity. This Is Why

Greater investment and productivity could spark growth in Latin America and the Caribbean

As the global economy gains strength and Latin America and the Caribbean recovers from recession, the region is actually falling further behind, continuing to lose its share in global GDP and putting in jeopardy the aspirations of its growing middle class The reasons behind this are complex. But low investment and productivity are fundamental factors. They require […]

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 […]

Nudging Latin Americans to Healthier, More Prosperous Lives

Nudging is instrumental for the IDB in improving health and well-being for Latin Americans

The year 2017 may be the year behavioral economics found its place in the sun. Fifteen years after behavioral economics pioneer Daniel Kahneman won his Nobel Prize, its principles have been transformed into key policy tools in government, business, and development agencies. The 2017 Nobel Prize to Richard Thaler, one of its principle theoreticians and […]

When Poorly Designed Pensions Threaten the Future

Over the last three months, tens of thousands of demonstrators have poured into the streets of Brazil’s major cities, blocking roads, clashing with police, and bringing public transport to a halt in protests in which pensions loom large. But Brazil’s pension crisis, which has the government trying to raise the minimum retirement age and workers […]

Rethinking Taxation to Protect Savings

Taxation and savings are inextricably linked. While taxation puts more money in the government’s hands, it also decreases private savings by leaving people and firms with less income to save, invest, and grow the economy. Despite this clear relationship, the negative impact of taxation on private savings is often the blind spot when policymakers tackle […]

When Too Much External Borrowing to Finance Investment Gets Dangerous

Life is full of people who never save, spend like sailors, and find from one day to the next that they’ve maxed out on their credit cards and must cut back on their lifestyle and even long-term investments like their children’s education. Countries are similar. Nations that don’t save sufficiently and finance investment with borrowing […]

Argentina’s Residential Real Estate: A Magnet for Savings that Trumps Bank Accounts

When it comes to their savings, households want to make sure they choose a type of investment that keeps their money safe and provides a reliable return. While in developed economies these requirements can be met by a simple bank account, in Latin America lack of trust in financial institutions discourages individuals from investing their […]

Can Culture Affect Economic Outcomes?

To what extent is economic behavior determined by culture and to what extent by the economic environment? In an extensive IDB study entitled Saving for Development: How Latin America and the Caribbean Can Save More and Better, the authors consider culture as a possible factor in the region’s abysmally low savings rates. They enter, in […]

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