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  • 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, Ethnicity
  • Political Geography: Latin America
  • 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, Economic growth
  • Political Geography: Brazil, Latin America
  • Author: Alejandro Herrera, Mariel Bedoya, Bruno Gonzaga, 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, Education
  • Political Geography: Latin America, Peru
  • 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, Ecology
  • Political Geography: Latin America, Peru
  • 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, Catholic Church
  • Political Geography: Argentina, South America, Latin America
  • Author: Sandra Polanía-Reyes
  • Publication Date: 12-2018
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This study tests an unintended benefit of a conditional cash transfer program in Colombia: the ability to overcome coordination failures. Participants interact with fellow beneficiaries, which gives rise to a coordination device. Beneficiaries participate in a minimum effort coordination game. Those enrolled in the program for over a year are exerting the highest level of effort. The improvement in coordination is not due to potential confounds such as willingness to cooperate or connectivity. A structural choice model illustrates that when beliefs about other’s behavior are sufficiently high the Pareto- dominant equilibrium holds. The findings support nascent initiatives to influence beliefs through policy interventions.
  • Topic: Civil Society, Development, Political Economy, Poverty, Communications, Governance, Inequality, Economic growth, Public Policy, Institutions
  • Political Geography: Colombia, South America, Latin America
  • Author: Felipe Antunes de Oliveira
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Centre for Global Political Economy, University of Sussex
  • Abstract: Latin America is once again passing through a crisis. After initially showing promising results, the neodevelopmentalist strategy adopted in Brazil and Argentina has reached its limits. The attempt at 21st century socialism in Venezuela derailed, tearing the country apart. Finally, the neoliberal path dutifully followed by Mexico, Chile, Colombia and smaller countries perpetuated social inequalities, and is now menaced by President Trump's protectionist turn. The current Latin American crisis goes much beyond the reversion of the so-called "Pink Tide". It affects all ideological colours, raising again an old theoretical-political question that stood in the core of dependency theory: is development even possible in Latin America? The key to answer this question – a concept of development that captures non-converging transformation – was not available to Frank, Marini, Bambirra and Dos Santos, among other dependency theorists. Too easily conflating development with catching-up, they reached a dead end. Indeed, as they could see, Latin America was constantly changing, but not in the expected ways. In this paper, I suggest that the concept of uneven and combined development allows for a renewed engagement with dependency theory's core problem, by representing mixed forms of development as the norm, not the exception.
  • Topic: Debt, Development, Economics, International Development, Economic growth
  • Political Geography: Brazil, Colombia, Latin America, Venezuela, Mexico, Chile
  • Author: Bettina Schorr
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
  • Abstract: Since the publication of the Brundtland Report in 1987, social inequality has been a topic of concern for the international development community. In the last decade, given the rise of global inequality the subject gained even more prominence as several international organizations (UNDP, World Bank, OECD) began emphasizing the negative impact of social inequality on human well-being. The Agenda 2030, the current development strategy adopted by the United Nations in 2015, elevated “reducing inequality” to one of the 17 Sustainable Development Goals (Goal No. 10). This paper connects with this growing concern over the impact of social inequalities on the opportunities for sustainable development. It proposes a research agenda for the social sciences to contribute to the debate by identifying the causal mechanisms that constitute the nexus between social inequalities and sustainable development. The focus on these intermediary steps is important in order to understand in more detail the barriers that social inequalities pose for more sustainable social, economic and ecological arrangements. This is especially necessary when it comes to designing or implementing strategies (political or technological) that aim to promote sustainable development, above all in highly unequal societies.
  • Topic: Development, Economics, Inequality, Sustainable Development Goals, Sustainability, Ecology
  • Political Geography: Argentina, Latin America, Chile
  • Author: Gonzalo Alcalde
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
  • Abstract: The 2030 Agenda for Sustainable Development is more than a set of goals and targets: it is a comprehensive “plan of action” that countries are translating into relevant policies. While this plan recognizes a need for different national paths towards the Sustainable Development Goals (SDGs), it also provides guidance for policymaking, establishing means of implementation and follow-up and review mechanisms that are indivisible from the SDGs. Moreover, analyzing the 2030 Agenda as a framework for policymaking reveals general principles that are both explicit and implicit in the UN’s Transforming Our World document. After examining previous relevant UN and OECD frameworks; official 2030 Agenda documents; current international literature on the SDGs, and consulting key 2030 Agenda stakeholders in Peru, this paper identifies eight general principles for sustainable development policymaking in 2030 Agenda implementation that are relevant to all SDGs and sectors, and suggests areas for further research.
  • Topic: Development, United Nations, Sustainable Development Goals, Economic Development , Sustainability, Organisation for Economic Co-operation and Development
  • Political Geography: Latin America, Peru, Global Focus
  • Author: Mariel Bedoya, Karen Espinoza, Alan Sanchez
  • Publication Date: 03-2018
  • Content Type: Working Paper
  • Institution: Group for the Analysis of Development (GRADE)
  • Abstract: Resarchers used longitudinal data from a cohort of Peruvian children (n=1,720) tracked starting at the age of 1 year old to test the association between alcohol-induced physical IPV (intimate partner violence) against the mother during the child’s first two years of life, and the child’s cognitive, socio-emotional and schooling outcomes between the ages of 5 and 8. Multivariate regression techniques are used to estimate the relationship of interest, as they allow for controlling of child, household, and community characteristics. The authors find that early life exposure to IPV is negatively associated with cognitive outcomes (vocabulary and math test scores) for all children, and with self-efficacy for girls. We find no association with child’s self-esteem and age of school enrollment indicators. The effects are larger among children whose mothers are better educated and live in urban areas. Results remain robust across different specifications and after isolating changes in relevant variables over time.
  • Topic: Development, Children, Gender Based Violence , Violence, Intimate Partner Violence
  • Political Geography: Latin America, Peru
  • Author: Juan Jose Diaz, Victor Saldarriaga
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Group for the Analysis of Development (GRADE)
  • Abstract: The authors assess the effects of JUNTOS, a conditional cash transfer program targeted to poor rural households in Peru, on the utilization of prenatal health care by women exposed to the program during their most recent pregnancy. They implement a difference-in-differences estimation technique to uncover the effects of JUNTOS on the utilization of prenatal health care, the quality of prenatal health care, utilization of health care at birth, and obstetric complications at birth. Researchers use data from the publicly available Demographic and Health Surveys (DHS) from the period 2000-2014. Results suggest that the program has increased prenatal health care utilization. Even more salient, the results also suggest an improvement in the quality of health care received and a reduction of obstetric complications at birth.
  • Topic: Development, Poverty, Children, Rural, Microeconomics, Infants
  • Political Geography: Latin America, Peru
  • Author: Samuel Appleton
  • Publication Date: 10-2016
  • Content Type: Working Paper
  • Institution: Centre for Global Political Economy, University of Sussex
  • Abstract: The Bretton Woods conference is conventionally understood as a radical break between the laissez faire order and its ‘embedded liberal’ successor, in which finance was suppressed in the interest of trade and productive growth. The new institutions, particularly the IBRD are often considered emblematic of this. In response to this, the paper argues that the Bretton Woods order required the enlistment, not repression, of private American finance. Firstly, laissez-faire era proposals for international financial institutions provided important precedents for the Bretton Woods institutions. Second, these were predicated on the uniquely deep liquidity of American financial markets following upon Progressive-era reforms, in the legacy of which the Roosevelt administration sought to locate the New Deal. Thirdly, they found new relevance in the 1940s as the IBRD turned by necessity to American financial markets for operating capital. Negotiating the imperative of commercial creditworthiness had two important consequences. First, it entailed the structural and procedural transformation of the IBRD, and allowed management to carve out a proprietary terrain in which its agency was decisive. Second, this suggests that US agendas were mediated by the Bank’s institutional imperatives – and that finance was no more ‘embedded’ during the Bretton Woods era than its predecessor.
  • Topic: Development, Economics, World Bank, Global Markets, International Development, Global Political Economy
  • Political Geography: United States, Europe, Latin America
  • Author: Aila M. Matanock, Miguel García-Sánchez
  • Publication Date: 07-2016
  • Content Type: Working Paper
  • Institution: Empirical Studies of Conflict Project (ESOC)
  • Abstract: Dominant theories of counterinsurgency suggest that state forces must win over citizens to identify insurgents among them. Yet even where state forces are losing, polling shows consistently strong support for counterinsurgents. How can we explain this discrepancy? It could be that the dominant theory of counterinsurgency is incorrect, or, as we posit, it could be that individuals systematically falsify their preferences. This study builds on the intuition that individuals may feel pressure and potentially fear that encourages them to report consistently strong support for the military when asked directly—even, perhaps especially, when they rely on an illegal organization or an illicit economy for their livelihood. We argue that this pressure decreases when individuals are asked indirectly, in a way that allows them to conceal their response. We thus assess whether support for the military is lower when measured indirectly than directly and whether the difference is more pronounced in areas of insurgent control. We test this theory of preference falsification, as well as its novel implications about spatial variation, by randomizing direct and indirect survey questions (a list experiment) in a face-to-face survey conducted across conflict contexts in Colombia.
  • Topic: Development, Insurgency, Counterinsurgency, Military Affairs, Citizenship, Conflict, Violence
  • Political Geography: Colombia, Latin America
  • Author: Beatriz Muriel Hernández
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Institute for Advanced Development Studies (INESAD)
  • Abstract: This article analyzes the importance of firm characteristics to explain earnings in urban Bolivia. Initially I propose a new simple theoretical model of segmented labor market where, in equilibrium, individual and firm variables jointly determine earnings at the worker level. The key for achieving this equilibrium is that workers have both specific preferences and heterogonous skills provided by years of schooling, which are in turn associated to certain firms. Given the household surveys information, I estimate two alternative earnings functions from this model, one for unsalaried workers, for which there is detailed firm data and one for salaried workers, in which sector, size and formality are used as firm proxies. I find not only that firm characteristics are fundamental determinants of earnings but that regressions that include only individual characteristics present highly overestimated coefficients.
  • Topic: Development, Economics, Labor Issues, Urban, Microeconomics, Private Sector
  • Political Geography: Latin America, Bolivia
  • Publication Date: 07-2015
  • Content Type: Working Paper
  • Institution: International Crisis Group
  • Abstract: The accelerating deterioration of Venezuela’s political crisis is cause for growing concern. The collapse in 2014 of an incipient dialogue between government and opposition ushered in growing political instability. With legislative elections due in December, there are fears of renewed violence. But there is a less widely appreciated side of the drama. A sharp fall in real incomes, major shortages of essential foods, medicines and other basic goods and breakdown of the health service are elements of a looming social crisis. If not tackled decisively and soon, it will become a humanitarian disaster with a seismic impact on domestic politics and society, and on Venezuela’s neighbours. This situation results from poor policy choices, incompetence and corruption; however, its gravest consequences can still be avoided. This will not happen unless the political deadlock is overcome and a fresh consensus forged, which in turn requires strong engagement of foreign governments and multilateral bodies.
  • Topic: Democratization, Development, Health, Food, Financial Crisis
  • Political Geography: Latin America
  • Author: Joshua Meltzer
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: SMEs are the main drivers of U.S. employment, and the majority of the employment is in SME services firms. Services are also a growing portion of U.S. exports. U.S. services exports are 34 percent of total exports. Including services used in the production of goods for export increases services exports to 50 percent of total U.S. exports. The U.S. runs a services trade surplus and has a competitive advantage in high-skill, high-paying services. The U.S. trade surplus in 2013 was $213 billion. Services exports supported 4.2 million jobs in the U.S. in 2013. Services SMEs are under-represented in U.S. exports. Only 5 percent of high-skilled services companies export, compared to 25 percent in the manufacturing sector. The global growth in Internet access is providing new opportunities for SMEs to export services to customers globally. The Internet also gives SMEs access to services as inputs, which increases the productivity of all SMEs and their ability to compete in overseas markets. Export Promotion Agencies (EPAs) assist SMEs to export. However, EPAs have not developed a comprehensive approach that takes full advantage of the opportunities the Internet provides for growing SME services exports. Some countries have developed new ways to use the Internet to assist SME exports. For example, in the U.S., businessusa.gov collects on a single website relevant trade data and provides information on the export assistance provided by various government agencies. In the U.K., opentoexport.com provides trade data, information on exporting and opportunities to blog and interact with experts. Matchsme.com in Denmark goes further and connects local businesses with local service suppliers. Connectamericas.com is also focused on Latin America and uses the Internet to match customers and suppliers. These different approaches and their successes provide insights into how to scale up an online program that could have a significant impact on SME services exports. The following are the main elements of such a program: Develop an Internet platform. Such a platform would connect services SMEs with overseas buyers and facilitate the transaction through to the export and payment. Build public-private partnerships. The Internet platform should involve the government and the private sector, drawing on their respective expertise. Develop trust in the Internet platform. This is needed if the platform is to succeed. There are various ways to build trust. This could include developing a rating system that is accepted across borders and incorporates into the platform existing trust-building mechanisms. Give services SMEs access to better information. The Internet platform should include all relevant information for services SMEs, including trade data, timely and relevant information on markets, barriers and regulations. Develop online networking opportunities. The Internet platform should allow services SMEs to meet customers and suppliers online. This would also increase the flow of timely information amongst participants on the platform. Such networks can also be used to vet potential business partners, thereby building trust in the Internet platform. Improve access to finance. A lack of finance is a barrier for services SMEs going global. An Internet platform should include information on financing opportunities and innovative financing approaches such as crowd funding. Create opportunities for soft landing in export markets. The ability for services SMEs to have face time with potential customers remains important for achieving export success. An Internet platform could build on the approach of CDMN in Canada and give SMEs opportunities to spend time overseas in start-up incubators or building contacts.
  • Topic: Development
  • Political Geography: Latin America
  • Author: Fabrice Lehoucq
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: Kellogg Institute for International Studies
  • Abstract: This paper analyzes the impact of civil war on regime change. It focuses on Central America, a region where several countries underwent transitions to democracy in the wake of civil war during the second half of the twentieth century. It argues that armed conflict, not increasing levels of economic development, led to political change. Violence liquidated stubbornly resilient autocracies in El Salvador and Nicaragua, catalyzed the democratization of Costa Rican politics, and was the backdrop to regime liberalization in Guatemala. Postwar negotiations, at a time when Cold War bipolarity was ending, led to the establishment of more open, civilian regimes on the isthmus. This paper also notes that the transition from autocracy was enormously costly in both lives and economic well-being, which helps to explain why political change has given birth to low-quality democracies or mixed regimes on the isthmus, ones that also have witnessed the explosion of criminal and drug-related violence.
  • Topic: Civil War, Crime, Democratization, Development, Regime Change, Narcotics Trafficking
  • Political Geography: Latin America
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: Economist Intelligence Unit
  • Abstract: The growth rates witnessed in markets across Latin America in the decade to 2010 pulled millions out of poverty, led to rapid growth of the middle class and helped to demonstrate the promise of emerging markets. Since then, however, growth has slowed dramatically across the region. 2015 will mark the fifth successive year of deceleration in Latin America, which has slowed more than any other emerging market region. With concerns over the ability of emerging markets to withstand a slowdown in China and monetary policy normalisation in the US growing, risks to the growth and financing outlook for Latin America persist. However, as economic recovery starts to gather pace in the region, opportunities for investment and growth will also re-emerge. This report provides a snapshot of the current political and economic landscape in the region, and in some of Latin America’s largest economies: Brazil, Mexico and Argentina. Each article analyses key concerns and presents our view of the outlook going forward, helping you to influence decision-making and economic outcomes for your business.
  • Topic: Development, Economics, Emerging Markets, Globalization, International Trade and Finance
  • Political Geography: Latin America