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141. The Poverty Macroeconomic Policy Nexus: Some Short-run Analytics

Author:
George Mavrotas and S. Mansoob Murshed
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The present paper utilises a short-run theoretical macroeconomic model of a small open economy to look at the impact of macroeconomic policies and financial deepening upon poverty through sectoral changes. This is because an expansion in certain sectors may cause greater poverty reduction. The model involves a non-traded and a traded sector on the formal side of the economy. The former is more capital intensive and the latter more unskilled labour intensive. Increased employment in the traded sector is more pro-poor compared to a similar rise in the non-traded sector as the former draws workers out of poverty in the informal sector. The model in our paper analyses short-run effects of devaluation, a rise in the money supply induced by financial deepening, and taxation to discourage non-traded goods consumption. Financial deepening can induce greater output and reduce poverty. Other results are mixed and taxonomic. We also attempt to differentiate between the stylised experiences of East Asia and Latin America. East Asian economies have relied more heavily on labour-intensive manufactured exports, whereas Latin America has had a relatively greater share of capital intensive and natural resource based exports. In recent decades countries in these two regions have had differing experiences in poverty reduction, with poverty arguably declining more in East Asia.
Topic:
International Relations, Development, Economics, and Poverty
Political Geography:
East Asia and Latin America

142. What Iraq and Argentina Might Learn from Each Other

Author:
Anna Gelpern
Publication Date:
06-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Financial collapse usually triggers a flurry of market, academic, and policy innovation. The Latin American debt crisis of the 1980s produced the Brady Bonds and led to the rise of today's emerging markets. In the late 1990s, crises in Pakistan, Ecuador, and Ukraine helped teach the markets how to restructure international sovereign bonds. Crises in Mexico, Russia, Brazil, Turkey, and throughout East Asia raised doubts about the international system's ability to manage vast and rapid capital flows, and prompted a big-picture reassessment under the rubric “international financial architecture.” This included most famously the sovereign bankruptcy proposals discussed elsewhere in this volume.
Topic:
Development and Economics
Political Geography:
Pakistan, Russia, Turkey, Ukraine, Middle East, East Asia, Brazil, South America, Latin America, and Mexico

143. What Makes a Difference in Achieving Higher Labor Productivity? The Case of Low-Income Countries in Latin America

Author:
Osvaldo Nina
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper uses firm level surveys from Ecuador, Guatemala, Honduras and Nicaragua to estimate the determinants of labor productivity. This study started out with the hypothesis that the adverse external business conditions that firms in poor Latin American countries face, may be an important explication of the generally low levels of productivity. However, the empirical results, based on the survey of more than 1300 businesses, do not confirm this hypothesis. Compared to all the variables that are under the firms control, such as capital intensity, energy use, and worker skills, the external business environment (macroeconomic instability and labor regulations) has very little impact on productivity.
Topic:
Development, Economics, Labor Issues, Productivity, and Income
Political Geography:
Latin America, Nicaragua, Honduras, Guatemala, and Ecuador

144. Perspectives on Urban Poverty in Latin America

Author:
Craig Fagan
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
The Wilson Center
Abstract:
Urban issues and poverty in Latin America are an integral part of any policy debate on the region. With nearly 90% of its diverse population and 50% of its poor residing in cities, effective and efficient solutions to the problems of poverty are imperative to respond to the increasing demographic and economic pressures placed on Latin America's limited social resources.
Topic:
Civil Society, Development, and Poverty
Political Geography:
South America and Latin America

145. Do Structural Reforms always Succeed? Lessons from Brazil

Author:
Jorge Saba Arbache
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In the last twenty years, Brazil has undergone several attempts of improving sustainable growth through stabilization programmes, and more recently, structural reforms in line with the Washington Consensus Agenda. The results, however, have been disappointing, as the per capita output growth has remained below its historic trend, and poverty and inequality remain at high levels. This paper investigates why marketoriented reforms such as trade and capital account liberalization, privatization, deregulation and stabilization failed to boost growth in Brazil. We conclude that structural reforms may contribute to growth if accompanied by microeconomic policies tailor-made to address the country's needs, and by appropriate macroeconomic, institutional and political environments.
Topic:
Development, Human Welfare, and Political Economy
Political Geography:
Washington, Brazil, and Latin America

146. Andes 2020: A New Strategy for the Challenges of Colombia and the Region

Author:
Daniel W. Christman, John G. Heimann, and Julia E. Sweig
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The democracies of the Andean region—Colombia, Venezuela, Ecuador, Peru, and Bolivia—are at risk. The problems that characterize other developing regions—including political instability, economic stagnancy, widening inequality, and social divisions along class, color, ethnic, ideological, and urban-rural fault lines—are all present in the Andes. Most important is the region's physical insecurity, due in some countries to ongoing or resurgent violent conflict, and in every country to the lack of state control over significant territory and to porous borders that enable the easy movement of drugs, arms, and conflict. Equally sobering, expectations for strong democracy and economic prosperity in the Andes remain unrealized. Recognizing its interests in the Andes, the United States over the past two decades has spent billions of dollars and significant manpower to stem the flow of illegal drugs from the region northward; to assist local security forces in the fight against drugs, terror, and insurgency; and to promote free markets, human rights, and democratic consolidation. Yet the region remains on the brink of collapse, an outcome that would pose a serious threat to the U.S. goal of achieving democracy, prosperity, and security in the hemisphere.
Topic:
Democratization, Development, and Regional Cooperation
Political Geography:
United States, Colombia, South America, Latin America, Venezuela, Peru, Ecuador, and Bolivia

147. Survey of SSR Regional and Sub-Regional Networks

Publication Date:
10-2003
Content Type:
Working Paper
Institution:
Global Facilitation Network for Security Sector Reform
Abstract:
The enclosed survey was conducted in order to map all regional and sub regional networks working in the field of Security Sector Reform (SSR) in Africa, Asia, Europe and Latin America and the Caribbean. The objective of mapping SSR networks in these regions is multi-fold. Firstly it is imperative that at a time when security has taken a truly global dimension and span, academics and practitioners alike are aware of the state of SSR in different regions. Certain similarities and patterns emerge during the analysis that offer lessons and directions for actors wishing to become involved in SSR in a particular region, or searching for guidance in applying best practices and lessons learned to particular situations. Secondly, exchange of experience and ideas is especially important in supporting South-South dialogue, but the value of cooperation cannot be overemphasized given the often-unclear context in which SSR activities take place. The mapping exercise serves as an entry-point for practitioners to identify existing networks and their areas of expertise. Opportunities for collaboration are made possible by identifying other organisations that are pursuing similar goals. Additionally, the map of SSR networks serves to identify possible gaps in scope of activity and highlights entry points for other organisations and networks to further the objectives of security sector management and reform. Lastly, this exercise will serve as a vehicle for the GFN-SSR to develop ways to strengthen its activities. One way in which the GFN-SSR is already adding value is through the development of its website, which, inter alia, offers a newsletter in four languages, i.e., English, French, Spanish and Portuguese. An activity to reinforce the access to information for those in areas of poor connectivity is already being developed through the conception of a CD-ROM containing all the existing website information for distribution on a timely basis to interested organisations.
Topic:
Security, Development, and International Organization
Political Geography:
Africa, America, Europe, Asia, South America, Latin America, Central America, and Caribbean

148. Promoting the Rule of Law Abroad: The Problem of Knowledge

Author:
Thomas Carothers
Publication Date:
01-2003
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Although the current rule-of-law promotion field is still expanding as it approaches the end of its second decade, it still faces a lack of knowledge at many levels of conception, operation, and evaluation. There is a surprising amount of uncertainty, for example, about the twin rationales of rule-of-law promotion—that promoting the rule of law will contribute to economic development and democratization. There is also uncertainty about what the essence of the rule of law actually is—whether it primarily resides in certain institutional configurations or in more diffuse normative structures. Rule-of-law promoters are also short of knowledge about how the rule of law develops in societies and how such development can be stimulated beyond simplistic efforts to copy institutional forms. And the question of what kinds of larger societal effects will result from specific changes in rule-of-law institutions is also still open. Although aid institutions engaged in rule-of-law assistance do attempt some—lessons learned—exercises, many of the lessons produced are superficial and even those are often not really learned. Several substantial obstacles to greater knowledge accumulation in this field persist, including the complexity of the task of promoting the rule of law, the particularity of legal systems, the unwillingness of aid organizations to invest sufficient resources in evaluations, and the tendency of both academics and lawyers not to pursue systematic empirical research on rule-of-law aid programs. Whether rule-of-law aid is on the path to becoming a well-grounded field of international assistance remains uncertain.
Topic:
International Relations, Democratization, Development, and Economics
Political Geography:
Latin America

149. Income Distribution Changes and their Impact in the Post-World War II Period

Author:
Tony Addison, Giovanni Andrea Cornia, and Sampsa Kiiski
Publication Date:
03-2003
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper analyses the trends in within-country inequality during the post- World War II period, with particular attention to the last 20 years, on the basis of a review of the relevant literature and of an econometric analysis of inequality trends in 73 countries accounting for 80 per cent of the world's population and 91 per cent of world GDP-PPP. The paper suggests that the last two decades have been characterized by a surge in within-country inequality in about two-thirds of the developing, developed and transitional nations analysed. It also suggests that in those countries where the upsurge in inequality was sizeable or where inequality rose from already high levels, growth and poverty alleviation slowed down perceptibly. While this trend towards higher inequality differs substantially across countries in its extent, timing and specific causes, it marks a clear departure from that observed during the first 30 years of the post-World War II period during which, with the exception of Latin America and parts of Sub-Saharan Africa, a widespread move towards greater egalitarianism was noted in the majority of the socialist, developing and industrialized economies.
Topic:
Development, Economics, Emerging Markets, International Political Economy, and Poverty
Political Geography:
Latin America

150. Ámbito y Papel de los Especialistas en las Reformas en los Sistemas de Salud: Los Casos de Brasil y México

Author:
Raquel Abrantes Pêgo and Célia Almeida
Publication Date:
09-2002
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
The purpose of this study is to consider the role played by the community of public health experts in the contemporary health sector reform process. It discusses the issue based on the case of Brazil and Mexico, because, as specialists, public health researchers in both countries have directed their participation to influencing the conflict over the reorientation of health policy in their respective countries. One of their approaches has consisted in developing a new cognitive framework that underpins technical health sector reform projects understood as policy proposals with technical content. Our purpose is to show that these experts manage to influence the national debate over health sector reform when the technical and scientific discussion leaves the academic sphere and goes to the realm of social and political debate. In our opinion, this occurs because this technical and scientific knowledge has been held out, independently of its intrinsic value, as a political and ideological alternative platform for sustaining a health sector reform proposal which, once transformed into a policy project, has served to aggregate certain political and social forces and not others. The study sets out each case separately, in each showing first the emergence of a new body of thinking in the field of public health (Collective Health in Brazil and New Public Health in Mexico). It then demonstrates how these groups of experts have articulated and interacted with specific political and social forces within their respective societies, and analyses how they have become a political stream within health institutions in the struggle to control the sector's future.
Topic:
Development and Human Welfare
Political Geography:
Brazil, South America, Latin America, Central America, North America, and Mexico