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Latin America & Caribbean

So what can be done to contain volatility and spur growth in these countries?

Francisco G. Carneiro's picture
Understanding Macroeconomic Volatility: Part 5. Read parts 1-4 here

How does this affect the small island economies of the Caribbean?

Francisco G. Carneiro's picture
Understanding Macroeconomic Volatility: Part 4. Click to read the rest of the series

Latin America: Is There Hope for Prosperity After the Commodity Price Boom?

Katia Vostroknutova's picture

This blog was previously published in The World Post.

Talk about ‘growth’ in Latin America has become less upbeat today than a few years ago. That’s no surprise. For over a decade, average growth meant at least double the economic activity that we are seeing today. 

3 steps to attack the fragility crisis

Nancy Lindborg's picture

Unify our response, build the ‘New Deal,’ inform wider policy

Like never before, a powerful global consensus is emerging that ‘without peace there is no development, and without development there is no peace,’ and that development gains must include not only material advancement, but also social justice and equity.
 
This recognition is the foundation for our collective work on fragility and for our collective hopes for Goal 16 of the new Global Goals, in which UN member states pledged to focus on creating peaceful, inclusive societies with access to justice and accountable institutions at every level. 
 
Together, we see that fragility—in which governance is weak or ineffective, or is seen by local citizens as illegitimate—is a key driver of the crises that strain our current international systems. In particular, we see that an arc of fragile states and regions, stretching across much of northern and sub-Saharan Africa, the Middle East and into Asia, has ignited civil wars, fueled virulent new forms of violent extremism and triggered historic levels of human displacement due to conflict.
 
Our common understanding is why the U.S. Institute of Peace (USIP) was an enthusiastic partner with the World Bank at the just-concluded Global Fragility Forum 2016. We cannot afford to ignore the global costs of fragility, in terms of humanitarian suffering, reversal of development and global security concerns. The World Bank mission to reduce global poverty and the United States Institute of Peace mission to end violent conflict have never been more intertwined.
 
My great hope is that this year’s Fragility Forum marks a true sea change in three fundamental ways for policy makers, academics and practitioners.

Uruguay’s award-winning innovations for social protection

Till Johannes Hartmann's picture
Photo credit: Jimmy Baikovicius

Uruguay stands out in Latin America and the Caribbean for the significant and early progress it achieved in terms of social protection.

Now gaining global attention, Uruguay is pioneering an award-winning information system to reduce poverty and vulnerability. The system addresses challenges faced by many governments in targeting and coordinating social assistance and, with reduced costs from license-free software, it could soon be replicated in other countries.

Uruguay spends more on social programs than any government in the region (about 25% of its GDP, and over 80% of total public spending). While these resources have enabled great advances, the wide array of institutions responsible for deploying them creates coordination challenges.

What’s the connection between financial development, volatility, and growth?

Francisco G. Carneiro's picture
Understanding macroeconomic volatility part 3
Read parts 1 & 2


There’s good evidence that a country’s level of financial development affects the impact of volatility on economic growth, particularly so in less developed countries, as the charts below demonstrate
 

Small states in search of big solutions: How the Caribbean Growth Forum is accelerating pro-growth reforms

Steve Utterwulghe's picture



Grenada – Photo by Steve Utterwulghe

Many Caribbean States have long been trapped in a vicious cycle of low growth, high debt and limited fiscal space. The impact of the 2008 financial crisis, as well as recurrent natural disasters, has made the situation even more acute in the region.

To address the structural and policy obstacles to development and growth, a multi-stakeholder dialogue platform on growth in the Caribbean was launched in 2012 by policymakers, the private sector and civil society from 12 states in the region. The Caribbean Growth Forum (CGF) was championed by the states’ prime ministers, and focal points were appointed in the respective Ministries of Finance. The World Bank, acting as the CGF Secretariat, has been behind this initiative from the onset, in collaboration with other regional development banks and various development partners active in the region.
 
Using a conceptual framework of reform identification, tracking and reporting, CFG’s stakeholders have made 495 reform recommendations so far – 40 percent of them actionable in the three pre-identified thematic areas: investment climate, connectivity and logistics, and productivity and skills. The World Bank in 2015 undertook a stocktaking exercise, which identified the CGF’s positive impacts and the areas of improvement.

The benefits of the CGF are unanimously recognized: the generation and dissemination of knowledge to support the reform implementation in the three thematic areas; support for the prioritization of government reforms; the strengthening of stakeholders’ accountability; the creation of social capital by giving a voice to a range of stakeholders; peer-to-peer exchanges and pressure; and the fostering of a culture of dialogue in the policy reform agenda.

Along with Cecile Fruman, Director of the Trade and Competitiveness Global Practice of the World Bank Group, I was honored to participate and speak at the launch of the Second Phase of the CGF in Belize on March 1 and 2. The objective of the event was twofold: to share and discuss the lessons learned so far, and to have the finance ministers of 12 Caribbean countries endorse a Joint Communiqué.

That communiqué, according to Sophie Sirtaine, the World Bank’s Country Director for the Caribbean, “signals the renewed commitments of these Caribbean nations to accelerate growth enhancing reform implementation, while strengthening public accountability through strengthened public-private dialogue (PPD) mechanisms.”

Economic opportunity for women: It's good business

Anabel Gonzalez's picture

Achieving gender equality and the economic empowerment of women is both a moral and social imperative — and it's also good business.
 
A study conducted by the McKinsey Global Institute estimates that, if all countries matched the level of progress toward gender equality of the most advanced country in their region, annual global GDP could increase by up to $12 trillion in 2025.
 
Over the past two decades, significant progress has been made toward raising living standards and closing the gap between men and women, particularly in health and education. Life expectancy at birth has risen in tandem with reductions in maternal mortality, while differences in access to primary education between boys and girls are diminishing steadily.
 
These gains — although significant — conceal differences between countries and regions, and are insufficient to ensure equal access to economic opportunities for boys and girls.


 

“No one helps…nadie me hace el paro”; preventing violence against women in public transport.

Karla Dominguez Gonzalez's picture

Also available in: Español

“As a young woman, I feel powerless and exposed when a man harasses me in the bus.  One feels more vulnerable because people don’t react to the situation.
No one helps… NADIE  ME HACE EL PARO.”
 
The above-mentioned quote comes from a sixteen-year-old girl who participated in one of the focus groups organized by the World Bank for a pilot project to prevent violence against women and girls (VAWG) in Mexico City’s public transport. What she and other women described about their experience was clear: when we are harassed no one does anything. The name of this pilot project reflects that: “Hazme el Paro” which is a colloquial expression in Mexico to say “have my back.”
Poster of the Campaign. 

The focus group discussion, part of an exercise to design a communication campaign, allowed us to discover that bystanders refrain from intervening not because of lack of will, but because they do not know what to do without putting themselves at risk. That’s when the project team saw a unique opportunity to try to give public transport users tools to enable them to become active interveners without violent confrontation.

The proposed intervention has three components:
  1. A marketing campaign, which provides information to bystanders about what they can do to interrupt harassment in a non-confrontational way
  2. Training for bus drivers on non-confrontational strategies for intervening when harassment occurs, and,
  3. A mobile application, which enables bus users to report when they are either victims of harassment or witnesses to it.

Do rich and poor countries have different approaches to counter-cyclical spending?

Francisco G. Carneiro's picture
Understanding Macroeconomic Volatility: Part 2

The fact is that a government can soften a recession by increasing spending (the counter-cyclical approach) to raise demand and output. If government reduces spending (the pro-cyclical approach), the likely result is a deeper recession.


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