This paper discusses the potential usefulness of implementing macroprudential approach in Central America.
A number of Andean countries stand out in their successful use of macroprudential financial regulations. This paper focuses on three: countercyclical capital requirements, countercyclical loan-loss provisioning requirements, and liquidity requirements.
The Impact of Taxes and Social Spending on Inequality and Poverty in Argentina, Bolivia, Brazil, Mexico, and Peru: A Synthesis of Results - Working Paper 311
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.
Declining Inequality in Latin America in the 2000s: The Cases of Argentina, Brazil, and Mexico - Working Paper 307
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.
In this paper, Nancy Birdsall sets out basic information on the growing middle class in Latin America and the Caribbean and provides grounds for optimism that such expansion might reinforce the inclusive politics that sustain broadly shared growth.
In this report, senior fellow Liliana Rojas-Suarez and José Luis Guasch, senior regional advisor on regulation and competition at the World Bank, investigate what donors can do to help Central America secure sustained growth, alleviate poverty, and reduce inequality, and what the role is for the private sector. They focus their recommendations on five areas in which policy changes can make Central American economies more competitive.
Capital Requirements under Basel III in Latin America: The Cases of Bolivia, Colombia, Ecuador and Peru - Working Paper 296
This paper conducts a detailed calculation of capital held by the banks in four Latin American countries—known as the Andean countries: Bolivia, Colombia, Ecuador and Peru—and assesses the potential effects of full compliance with the capital requirements under Basel III.
Credit at Times of Stress: Latin American Lessons from the Global Financial Crisis - Working Paper 289
This paper identifies the factors at both the country and the bank levels that contributed to the behavior of real credit growth in Latin America during the global financial crisis.
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.
In this CGD Essay, visiting fellow Nancy Lee provides the full details and policy recommendations for a strategy of regional investment integration in the Americas. The essay, excerpted from her chapter in the forthcoming White House and the World: A Global Development Agenda for the Next U.S. President, builds on a previously published CGD Note by specifying the scope of the proposed agreement, outlining its expected gains, and identifying the initial steps the United States could take to encourage a fresh agreement to be reached.
Unlike East Asia and Europe, Latin America lacks a shared integration strategy and continues to struggle with a burdensome investment climate. In this new CGD Note, visiting fellow Nancy Lee suggests a fresh approach to regional integration in the form of a proposed regional investment agreement. The idea is a collective effort to set common standards for reducing specific barriers to domestic and foreign investment. Beyond its benefits for growth, such an agreement could boost the incomes of the poor by helping small businesses trapped in the informal sector move into the more productive formal sector.
In an increasingly globalized world, inequality is an issue of rising concern, especially in Latin America, home to many of the world's most unequal societies. This new book, co-published by the Center for Global Development and the Inter-American Dialogue, describes the links between recent growth trends, changing patterns of inequality, and rising cynicism and frustration with the political leadership across the region. The authors, Nancy Birdsall, Augusto de la Torre, and Rachel Menezes, present a dozen economic policy tools to make life fairer for the great majority of people--without sacrificing economic growth.
Reflections on the Macro Foundations of the Middle Class in the Developing World - Working Paper 130
Shared growth—growth that helps to build a middle class—is now widely embraced as a central economic goal for developing countries. In this new working paper CGD president Nancy Birdsall reviews how macroeconomic policies shape incentives for inclusive growth, focusing on fiscal discipline; fair revenue and expenditure practices; and a business-friendly exchange rate. Relying heavily on the experience in Latin America and drawing lessons for other parts of the developing world, Birdsall argues that growth that strengthens the middle classes helps poor people, too.
How Do the BRICs Stack Up? Adding Brazil, Russia, India, and China to the Environment Component of the Commitment to Development Index - Working Paper 128
In this working paper CGD research fellow David Roodman explains how the four biggest developing countries -- Brazil, Russia, India and China, a group Goldman Sachs dubbed the "BRICs" -- stack up to their rich-country counterparts on the environment component of the annual Commitment to Development Index (CDI). He finds they generally perform well on greenhouse gas emissions, consumption of ozone-depleting substances, and tropical timber imports. Major weaknesses include low gas taxes, Amazon deforestation and heavy fossil fuel use.
In this new book, Bill Cline, a joint senior fellow at CGD and the Peterson Institute for International Economics, provides the first ever estimates of the impact on agriculture by country, with a particular focus on the social and economic implications in China, India, Brazil, and the poor countries of the tropical belt in Africa and Latin America. His study shows that the long-term negative effects on world agriculture will be severe, and that developing countries will suffer first and worst.
For the past decade, U.S. attention to Latin America has focused mainly on promotion of free trade and opposition to narcotics trafficking and security threats. But there are signs that Washington is beginning to recognize the importance of helping the region tackle longstanding poverty and social inequality. Candidates at this weekend's Democratic presidential debate called for a robust foreign policy in Latin America and the Bush administration has recently shown a renewed interest in promoting development and improving Washington's image in the region. This new brief by CGD president Nancy Birdsall and Inter-American Dialogue president Peter Hakim sets forth a practical agenda for how the U.S. can help. Examples: buttress free trade agreements with aid programs that compensate losers; include land redistribution and alternative employment programs in the so-called "war against drugs."
A White House conference on social justice in Latin America this week may signal a shift to U.S. engagement with the region that goes beyond security, free trade, and anti-narcotics efforts. CGD president Nancy Birdsall and Peter Hakim, president of the Inter-American Dialogue, suggest seven ways that the U.S. could more effectively support Latin American efforts to address persistent inequality--starting with a more effective approach on trade and drugs.