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She is also the chair of the Latin American Committee on Macroeconomic and Financial Issues (CLAAF) and Adjunct Professor at the School of International and Public Affairs at Columbia University, New York. From March 1998 to October 2000, she served as managing director and chief economist for Latin America at Deutsche Bank. Before joining Deutsche Bank, Rojas-Suarez was the principal advisor in the Office of Chief Economist at the Inter-American Development Bank. Between 1984 and 1994 she held various positions at the International Monetary Fund, most recently as deputy chief of the Capital Markets and Financial Studies Division of the Research Department. She has been a visiting fellow at the Institute for International Economics, a visiting advisor at the Bank for International Settlements and at the Central Bank of Spain. She has also served as a professor at Anahuac University in Mexico and advisor for PEMEX, Mexico’s National Petroleum Company. Rojas-Suarez has also testified before a Joint Committee of the U.S. Senate on the issue of dollarization in Latin America.
She has published widely in the areas of macroeconomic policy, international economics and financial markets in a large number of academic and other journals including Journal of International Economics, Journal of International Money and Finance, Journal of Development Economics, Journal of Contemporary Economic Policy, International Monetary Fund Staff Papers. She has also published or being cited in prestigious newspapers such as the Financial Times, the Wall Street Journal and the Washington Post. She is also regularly interviewed by CNN en Español.
Michael P. Dooley & Donald J. Mathieson & Liliana Rojas-Suarez, 1997. "Capital Mobility and Exchange Market Intervention in Developing Countries" NBER Working Papers 6247, National Bureau of Economic Research, Inc.
Rojas-Suarez, L & Weisbrod, S-R, 1997. "Financial Markets and the Behavior of Private Savings in Latin America" Working Papers 340, Inter-American Development Bank, Research Department.
McNelis, P.D. & Rojas-Suarez, L., 1996. "Exchange rate depreciation, Dollarization and Uncertainty: A Comparison of Bolivia and Peru" Working Papers 325, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S.R., 1996. "Banking crises in Latin America: Experience and Issues" Working Papers 321, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S.R., 1996. "Building Stability in Latin American Financial Markets" Working Papers 320, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S.R., 1996. "Managing Banking Crises in Latin America: The Di's and Don'ts of Successful Bank Restructuring Programs" Working Papers 319, Inter-American Development Bank, Research Department.
Rojas-Suarez, L. & Weisbrod, S., 1994. "Achieving Stability in Latin American Financial Markets in the Presence of Volatile Capital Flows" Working Papers 304, Inter-American Development Bank, Research Department.
Debt crises in Europe, sluggish growth in the United States, and an overvalued Chinese currency could all spell trouble for developing countries. CGD senior fellow Liliana Rojas-Suarez unpacks three big financial-sector risks for 2011.
An event this Thursday for those of you in Washington, DC....
Update: A video record of the event is here.
The Center for Global Development presents
The Global Implications of India’s Microcredit Crisis
Thursday, December 9, 2010
2:00 – 3:30 P.M.
The largest crisis in the history of microfinance is now unfolding in India. After five years of growth so fast it has been described as “indescribable,” and after a lucrative initial public offering (IPO) by the leading firm, the government of the state of Andhra Pradesh has cracked down. Amid reports of microcredit-linked suicides, the state has urged borrowers to stop repaying, and millions have heeded the call. Bankruptcies of some of the world’s largest microcreditors are now a realistic possibility.
What is the reality of microcredit in India? Is the backlash an engineered campaign to protect a government-run (and World Bank–financed) program from private-sector competition? Or has the fast growth in credit ensnared the poor in debt? Some of each?
And what lessons does the crisis hold for actors worldwide, including microfinance institutions and investors ranging from the World Bank to Kiva users? When is microcredit—and investment in it—too much of a good thing?
Center for Global Development
WASHINGTON (July 2, 2019) -- The Latin American Committee on Macroeconomic and Financial Issues (CLAAF by its Spanish acronym) met in Washington today to discuss ‘Mexico’s financial risks: Solving Pemex for a Solvent Mexico.’ The CLAAF explored some of the major macroeconomic issues facing President Andrés Manuel López Obrador (AMLO), the new leader of Mexico, such as declining per-capita income growth, fiscal and monetary issues, and the country’s finance and trade integration with the US and larger international system, and made a series of related reform recommendations in a policy statement.
The CLAAF is a group of prominent economists and academics who have served as government ministers, central bank governors, and/or senior officials at multilateral institutions like the Inter-American Development Bank, International Monetary Fund and the World Bank. Twice a year, the group convenes to analyze major national or regional macroeconomic issues and then release a series of policy recommendations to change course and advance greater economic and financial stabilization.
Cognizant of and analyzing some of the major domestic and international pressures on the AMLO administration (such as NAFTA legacy and the manufacturing sector, the new USMCA, US Federal Reserve activity, rule of law and corruption issues, and more) the CLAAF centers in on Pemex, the state-owned oil company, “by far the single most important fiscal problem faced by the AMLO administration. Lack of investments in exploration and extraction have led to a steady reduction in oil production, while the company has issued a large stock of debt in international markets. Investors have become increasingly weary of holding Pemex bonds,” the group states.
To avoid a sovereign rating downgrade or an additional deterioration of Pemex, either of which could severely curtail capital inflows to Mexico, and improve the country’s economic outlook, the CLAAF believes that:
the paramount task for the government is to address the critical situation at Pemex:
a corporate restructuring of Pemex is required, and should be complemented by a number of additional actions, including attracting new private funding for investments in exploration and extraction;
a comprehensive corporate restructuring plan can also help avert Pemex’s debt crisis. Currently, Pemex is on a collision course that may lead to a debt restructuring; and
while rationalization of current expenditures is needed, the success of the government’s plan of using primary surpluses to finance public expenditure projects requires well-developed and substantive feasibility studies.
“The first priority for the Mexican government should be the prompt resolution of Pemex’s deep financial problems,” said Liliana Rojas-Suarez, president of the CLAAF and director of the Latin American Initiative at the Center for Global Development. “If this issue is not addressed in time, a downgrade of Mexico´s sovereign debt is likely. This, combined with the current external challenges arising mainly from US policies, could further curtail Mexico’s economic growth prospects and performance.”
CLAAF members participating in the June-July 2019 session:
Laura Alfaro, Warren Albert Professor, Harvard Business School, Former Minister of National Planning and Economic Policy, Costa Rica
Augusto De La Torre, Former Chief Economist for Latin America and the Caribbean, The World Bank. Former Governor, Central Bank of Ecuador.
Guillermo Calvo, Professor, University of Columbia; former Chief Economist, Inter-American Development Bank
Roque Fernandez, Economics Professor, UCEMA University; former Minister of Finance, Argentina
Pablo Guidotti, Professor of the Government School, University of Torcuato di Tella; former Vice minister of Economy, Argentina
Paulo Leme, Executive in Residence Professor of Finance, Miami Business School, University of Miami.
Enrique Mendoza, Presidential Professor of Economics, University of Pennsylvania. Director, Penn Institute for Economic Research.
Guillermo Perry, Non-Resident Fellow, Center for Global Development. Former Chief Economist of the Latin America and Caribbean Region, World Bank
Carmen Reinhart, Minos A. Zombanakis Professor of the International Financial System at the Harvard Kennedy School.
Liliana Rojas-Suarez, president, CLAAF; Senior Fellow and Director of the Latin American Initiative, Center for Global Development; former Chief Economist for Latin America, Deutsche Bank
Full Statement Here
Video of Findings and Discussion Here
Contact: Sean Bartlett Center for Global Development firstname.lastname@example.org +1.202.821.2947
Eva Grant Center for Global Development email@example.com +1.202.416.4027
WASHINGTON – Better banking policies are necessary given the serious challenges financial systems will face due to the economic impacts of the COVID-19 health crisis in Latin America and the Caribbean, a new working group report released today finds. The report was co-chaired by the Center for Global Development (CGD) and the Inter-American Development Bank (IDB).
“Sound Banks for Healthy Economies: Challenges for Policymakers in Latin America and the Caribbean in Times of Coronavirus” (reporte disponible en Español) outlines a series of challenges and details recommendations for regional policymakers, also relevant for other emerging markets worldwide.
“Families and firms alike are struggling during the ongoing pandemic, and they will need financing to both weather the crisis and come out on the other side with enough strength to survive and then build back,” said Liliana Rojas-Suarez, director of the Latin America Initiative at CGD and co-author of the report. “There is a strong sense that the longer COVID-19 rages on, the strain on financial systems will worsen. This is where averting systemic banking crises throughout the region becomes critical.”
“Many countries have allowed banks to restructure loans with no additional required provisioning and have implemented loan guarantee schemes,” said Andrew Powell, principal advisor in the IDB’s research department and co-author of the report. “While these policies have been constructive, they carry risks and alternative instruments should be considered.”
Some of the report’s other findings include the importance of maintaining central bank credibility and balance sheet strength, focusing on instruments to deal with solvency as well as liquidity problems, and harnessing new transfer programs to boost financial inclusion. An accompanying blog (y en Español) provides more information on some of these options.
The report concludes that Latin America and the Caribbean has a difficult path to navigate during and after the COVID-19 crisis. Good policies, as identified through the discussions of the expert working group that formed the basis of this report, will help minimize the economic hardship and allow banks to play a constructive, comprehensive role in the pandemic recovery phase throughout the region.
The Center for Global Development is an independent, nonpartisan, nonprofit organization that works to reduce global poverty and improve lives through innovative economic research that drives better policy and practice by the world's top decision makers. https://www.cgdev.org/page/about-cgd
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.
Moving from the clearly obsolete G-7 to a broader group that reflects the reality of today’s world makes eminent sense. Doing it on the basis of a grouping improvised during the crisis-before-last (and making sure that it included the then-favorite finance ministers of the U.S. and Canadian sponsors) is squandering the opportunity to move up to a credible, transparent, global governance platform.