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2. Toxic Conflict: Understanding Venezuela's Economic Collapse
- Author:
- Juan Carlos Fernández-Rodríguez
- Publication Date:
- 11-2021
- Content Type:
- Working Paper
- Institution:
- Kellogg Institute for International Studies
- Abstract:
- This paper discusses the causes of Venezuela’s recent economic collapse, the largest in modern Latin American economic history and one of the largest in modern world history outside of wartime. I argue that Venezuela’s economic implosion is a combination of two crises. The first one reflects the standard unraveling of a populist macroeconomic cycle fed by overspending during a resource boom, while the second one reflects the severing of the country’s trade and financial links with the global economy. This severing is the consequence of the decision by political actors to adopt “scorched earth” strategies with large negative aggregate economic spillovers in their fight for power. I argue that the inability of Venezuela’s high-stakes, winner-take-all political system to deal with the large negative 2014–16 trade shock precipitated the change in political strategies and the descent into economically destructive political conflict.
- Topic:
- Development, Political Economy, Democracy, Economic Growth, Conflict, Institutions, and Peacebuilding
- Political Geography:
- South America and Latin America
3. Social Mobility and Economic Development: Evidence from a Panel of Latin American Regions
- Author:
- Guido Neidhofer, Matias Ciaschi, Leonardo Gasparini, and Joaquín Serrano
- Publication Date:
- 09-2021
- Content Type:
- Working Paper
- Institution:
- Center for Distributive, Labor and Social Studies (CEDLAS)
- Abstract:
- We explore the role of social mobility as a driver of economic development by constructing a panel data set that includes measures of intergenerational mobility of education at the sub-national level in Latin America. First, we map the geography of educational mobility for 52 Latin American regions, as well as its evolution over time. Then, through a novel weighting procedure that considers the participation of cohorts to the economy in each year, we estimate the effect of changes in mobility on economic indicators, such as income per capita, poverty, child mortality, and luminosity. Hereby, we control for several covariates, including migration, educational expansions, initial conditions, and unobserved cross-regional heterogeneity. Our findings show that increasing social mobility had a significant and robust impact on the development of Latin American regions.
- Topic:
- Development, Economic Growth, Economic Mobility, Equality, and Equality of Opportunity
- Political Geography:
- Latin America
4. Quantifying Investment Facilitation at Country Level: Introducing a New Index
- Author:
- Axel Berger, Ali Dadkhah, and Zoryana Olekseyuk
- Publication Date:
- 01-2021
- Content Type:
- Working Paper
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- This article introduces a new and unique dataset for measuring the adoption of investment facilitation measures at country level. The Investment Facilitation Index (IFI) covers 117 individual investment facilitation measures, clustered in six policy areas, and maps their adoption for 86 countries. This article presents the conceptual and methodological background of the IFI and provides a first analysis of the level of adoption of investment facilitation measures across countries participating in the investment facilitation for development negotiations in the World Trade Organization (WTO). Our dataset reveals novel insights. Countries which have lower levels of adoption belong to the low-income and lower-middle-income country group and are often located in Africa, the Middle East and to some extent Latin America and the Caribbean. The strong correlation between FDI and the IFI score shows that countries with the lowest levels of FDI, and thus in need of policy tools to attract FDI, have the lowest levels of adoption when it comes to investment facilitation measures. Our dataset has direct relevance for current policy discussions on investment facilitation for development in the WTO but also for domestic-level policy-making. Furthermore, the IFI provides the basis for a future research agenda to assess the design and impact of a future WTO agreement.
- Topic:
- Development, Investment, and WTO
- Political Geography:
- Africa, Middle East, Latin America, and Caribbean
5. Beyond a Single Model: Explaining Differences in Inequality within Latin America
- Author:
- Diego Sánchez-Ancochea
- Publication Date:
- 05-2020
- Content Type:
- Working Paper
- Institution:
- Kellogg Institute for International Studies
- Abstract:
- This paper studies the determinants of income inequality in Latin America over the long run, comparing them with explanations of why the whole region is unequal. I first show how land inequality can account for differences between Latin America and other parts of the world but how it does not explain within-region differences. Using qualitative comparative analysis, I then consider how political institution and actors interact with the economic structure (i.e., type of export specialization) and with the ethnic composition of the population. The paper has several findings. A low indigenous/afrodescendant population is a necessary condition for relatively low inequality. I identify two sufficient-condition paths, both of which include the role of democracy, political equality, and a small indigenous and afrodescendant population. The first path also includes a favorable export specialization, while the second one includes the presence of leftist presidents instead. The paper calls for more explicit comparisons between our analytical models for the whole region and our explanations of between-country differences. Hopefully, the paper can also trigger more research on how the interactions between ethnicity, politics, and the export structure shape inequality in Latin America.
- Topic:
- Civil Society, Development, Political Economy, Poverty, Race, Social Movement, Democracy, Inequality, and Ethnicity
- Political Geography:
- Latin America
6. Setting an example? Spillover effects of Peruvian Magnet Schools
- Author:
- Alejandro Herrera, Mariel Bedoya, Bruno Gonzaga, and Karen Espinoza
- Publication Date:
- 03-2019
- Content Type:
- Working Paper
- Institution:
- Institute for Advanced Development Studies (INESAD)
- Abstract:
- In this paper we use a Multi-Cutoff Fuzzy Regression Discontinuity Design to evaluate spillover effects of students enrolled into Peruvian public magnet schools, Colegios de Alto Rendimiento (COAR), on educational outcomes of younger students in their schools of origin. Using administrative data from the Ministry of Education for 2016, we find that having at least one student admitted in a COAR school causes some negative spillover effects on math test scores of students from the following cohort. No evidence of statistically significant results is found for verbal and history test scores, nor for self-reported educational expectations. We discuss potential causes and reasons that may explain our results.
- Topic:
- Development, Economics, and Education
- Political Geography:
- Latin America and Peru
7. Hybrid Institutions: Institutionalizing Practices in the Context of Extractive Expansion
- Publication Date:
- 01-2019
- Content Type:
- Working Paper
- Institution:
- Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
- Abstract:
- States face the challenge of developing institutions to govern the activities of social actors when an area under their control becomes the target of increased extractive activities. National and local public regulations safeguarding the environment, the assignment of extractive rights to individuals or companies, and handling of ensuing conflicts are developed in an institutional gray zone. This paper analyzes how informal institutions developed in early period become hybrid institutional entanglements that depend largely on configurations of power. It does so by looking at two cases in Peru: Water extraction in Ica, mostly by large companies and gold mining in Madre de Dios, mostly by small scale miners. Taken together, these cases show the institutions resulting from state governance of extractive activities depends heavily on the agency and political leverage of the state but also of other social actors.
- Topic:
- Development, Economics, Environment, Natural Resources, Water, Institutions, and Ecology
- Political Geography:
- Latin America and Peru
8. Does the rise of the middle class disguise existing inequalities in Brazil?
- Author:
- Yume Tamiya
- Publication Date:
- 09-2019
- Content Type:
- Working Paper
- Institution:
- Centre for Global Political Economy, University of Sussex
- Abstract:
- In 2018/2019 the CGPE launched an annual Gender & Global Political Economy Undergraduate Essay Prize competition, open to all undergraduate students within the School of Global Studies. The winner of the 2018/2019 competition is Isabella Garcia for the essay “How do global supply chains exacerbate gender-based violence against women in the Global South?” Isabella graduated with a BA in International Relations and Development in July and will join the MA cohort in our Global Political Economy programme for 2019/2020. Given the very strong field of submissions, the award committee further decided to award a second-place prize to Yume Tamiya for the essay “Does the rise of the middle class disguise existing inequalities in Brazil?”. Yume graduated with a BA in International Development with International Education and Development. We are delighted to publish both of these excellent essays in the CGPE Working Paper series.
- Topic:
- Development, Economics, Inequality, and Economic Growth
- Political Geography:
- Brazil and Latin America
9. Building Development Partnership: Engagement Between China and Latin America
- Author:
- Haibin Niu
- Publication Date:
- 06-2019
- Content Type:
- Working Paper
- Institution:
- The Carter Center
- Abstract:
- The full-fledged economic ties between China and Latin America and the Caribbean are important indicators of China’s role as a global player. In the ongoing and heightened debate about China’s rise, China’s impact on Latin America is being discussed by scholars and policymakers worldwide. Though there are doubts about China’s intentions and impact on Latin America, China has developed a more substantial and meaningful policy framework to build development partnership with the region.
- Topic:
- Foreign Policy, Development, International Cooperation, and Economic Cooperation
- Political Geography:
- China, Asia, and Latin America
10. Integral Human Development Through the Lens of Sen’s Capability Approach and the Life of a Faith Community at the Latin American Urban Margins
- Author:
- Séverine Deneulin
- Publication Date:
- 04-2018
- Content Type:
- Working Paper
- Institution:
- Kellogg Institute for International Studies
- Abstract:
- The concept of integral human development is central to the Catholic social tradition. Yet, it remains under-explored with regard to its integrating components and their implications. What does taking an integral human development perspective mean for social analysis and action? The paper seeks to answer this question on the basis of the four encyclicals in which the idea of integral human development is treated, and in combination with two other sources: 1) the literature on “human development” in the multidisciplinary social science field of international development studies and its conceptual foundations in Amartya Sen’s capability approach; and 2) the life of a faith community in a marginalized Latin American urban neighborhood. Based on a combination of these sources, the paper concludes by proposing an understanding of “integral human development” that it calls a spirituality-extended capability approach to the progress of peoples.
- Topic:
- Civil Society, Development, Education, Poverty, Religion, Inequality, Youth, Violence, Christianity, and Catholic Church
- Political Geography:
- Argentina, South America, and Latin America