Latin America is known for high levels of inequality, which governments can lessen somewhat through smart policy. In this paper, Nora Lustig and others analyze how and whether taxes, subsidies, and social spending reduce inequality across countries in the region and identify which policies are most beneficial.
Income inequality fell in most of Latin America in the 2000s after rising in the 1990s. In this paper, Nora Lustig, Luis Lopez-Calva, and Eduardo Ortis-Juarez investigate why.
This course aims to develop a broad understanding of the dynamics of inequality and poverty in Latin America and how market forces and government policies affect those dynamics.
This course presents an overview of poverty analysis and how it is applied by multilateral organizations.
Mexico’s Progresa/Oportunidades conditional cash transfers program (CCT) is constantly used as a model of a successful antipoverty program. This paper argues that the transformation of well-trained scholars into influential practitioners played a fundamental role in promoting a new conceptual approach to poverty reduction.
Poverty and well-being are multidimensional. Nobody questions that deprivations and achievements go beyond income. There is, however, sharp disagreement on whether the various dimensions of poverty and well-being can be aggregated into a single, multidimensional index in a meaningful way. Is aggregating dimensions of poverty and well-being useful? Is it sensible? Here CGD non-resident fellow Nora Lustig summarizes and contrasts three key papers that respond to these questions in strikingly different ways.
New research shows that inequality in Latin America is falling. In this paper, the authors summarize recent findings, analyze the affect of different regimes, and investigate the relationship between inequality and changes in the size of the middle class in the region. They conclude with some questions about whether and how changes in income distribution and in middle-class economic power will affect the politics of distribution in the future.
This course will analyze the economic challenges faced by low and middle-income countries in their quest for development and public policies meant to address those challenges.
Visiting fellow Nora Lustig examines the policy dilemmas rising food prices force on developing countries. Letting prices adjust can generate inflationary pressure while efforts to stabilize domestic prices often exacerbate global price increases; during the recent food price crisis, many countries chose instead to shift the burden back to international markets.
World food prices risen over the past five years at an alarming pace after decreasing for three consecutive decades. CGD visiting fellow Nora Lustig argues that despite some relief since July 2008, the price hikes significantly set back poverty reduction, upset social stability, promote inflation, compromise rules-based trading systems, and hurt poor net consumers. Nonetheless, too many developing countries lack the instruments, administrative capacity, and fiscal space to implement safety nets fast enough and in the required scale.
This is the course syllabus for Economic Development (IAFF 238), taught by Nora Lustig, Shapiro Visiting Professor of International Affairs at George Washington University and CGD Board member. The course analyzes the economic challenges faced by low and middle-income countries in their quest for development.