The global financial crisis: what happened and what’s next

Global economic conditions have been deteriorating sharply since mid- September 2008. Lending has dropped abruptly, credit spreads have widened sharply, stock markets have plunged and economies everywhere are stumbling. Governments around the world have undertaken unprecedented measures, including some coordinated intervention. However, global economic prospects remain troubled, and further policy action is required. In order to better understand the task before policy makers as they chart a new direction, this paper examines how the global economy arrived at its current predicament, looking b…

Promoting corporate social responsibility in small and medium enterprises in the Caribbean: methodology report

Over the past decade, a growing number of companies have recognized the business benefits of Corporate Social Responsibility (CSR) policies and practices. Their experiences are bolstered by a growing body of empirical studies that demonstrates that CSR has a positive impact on business economic performance and is not detrimental to shareholder value. Maximization of profits is perhaps the most important element for ensuring the continuity of the business over the time. However, value creation is also related to social issues such as health and safety, equality and environmental protection, und…

A new generation of standards: implications for the Caribbean and Latin America

International trade in food products has expanded significantly during the past few decades. These products include fresh and processed fruits and vegetables, fish, live animals and meat, nuts, and spices. However, international trade of these products is subject to a huge array of standards and regulations imposing potentially large compliance costs to many developing country suppliers.Standards and regulations apply to both the products themselves and the processes by which they are processed, handled, packed, etc. and respond to health concerns, consumer preferences and strategic commercial…

Capital flows to Latin America: recent developments

The external environment has deteriorated sharply as a result of the spiraling financial turmoil, and has led to a weakening in commodity prices and fears of a worldwide recession. Latin America and the Caribbean's fastest expansion in 40 years may be threatened as the global credit crunch makes financing scarce and squeezes demand for the region's commodities. This time around the region is better positioned to weather the crisis than in the past, given improvements in macroeconomic and financial policies as well as a reduced net dependency on external capital inflows. However, Lati…

Promoting corporate social responsibility in small and medium enterprises in the Caribbean: survey results

In November 2007, a three-day regional seminar to strengthen the competitiveness of CARICOM SMEs took place in Barbados with the aim of encouraging companies to incorporate CSR practices into their business strategy. The participants represented over 25 SMEs from Barbados, Jamaica, Guyana, St. Lucia and Trinidad and Tobago. During the workshop, the participants were introduced to Corporate Social Responsibility (CSR) tools and resources, as well as local case studies. On the last day of the workshop, the pilot survey was conducted using a draft of the CSR questionnaire applied here, in order t…

Capital flows to Latin America: recent developments

In the midst of broad global market turmoil and mounting fears of a recession in the U.S., emerging markets have shown strong growth and economic resilience. For the first time in recent history, the external meltdown has not sparked capital flight from Latin America. Quite the contrary, Latin American markets have been seen by investors as a safe haven from the supbprime woes afflicting the U.S. economyDespite showing significant resilience, Latin American debt spreads widened in the first quarter of 2008, and after reaching record lows in May 2007, they are now re-approaching pre-Asian crisi…

United States economic outlook: quarterly developments

United States economic outlook: quarterly developments

Capital flows to Latin America: quarterly developments

Concerns about the ongoing U.S crisis in the housing sector and the asset exposures to subprime mortgages dominated financial markets in the second and third quarters of 2007. Volatility spiked in July and August, with losses in the subprime mortgage sector spreading to other risky assets. The volatility radiating from the United States is changing the global backdrop for emerging markets. This change comes after several years when the combination of improvement in country macroeconomic policies and strong risk appetites led to strong flows of new money to the emerging markets asset classes. …

Status of agrifood regulatory coordination under the North American Free Trade Agreement

Since its initiation on January 1, 1994, the agriculture section of the North American Free Trade Agreement (NAFTA) has been controversial, which has led to several trade disputes, suggestions for modification and strengthening, and even Presidential initiatives such as the Security and Prosperity Partnership of North America (SPP). While NAFTA has done much to spur economic growth and development, it has not realized its potential in integrating agrifood markets. Several illustrations are summarized in this report on progress in overcoming sanitary and phytosanitary (SPS) barriers to trade un…

Confusion and uncertainty in credit markets

Capital flows to Latin America: quarterly developments

In the first quarter of 2007, Latin American spreads tightened to new lows and equity prices climbed further, despite a brief bout of market turbulence in late-February and early-March. The good macroeconomic performance of the countries of the region contributed to these favorable developments, but the high level of liquidity in global markets, as well as elevated risk tolerance among market participants, also played a very important role.The negative shift in market sentiment in late-February and early-March was triggered by steep declines in global equity markets - which came after an almos…

Capital flows to Latin America: year end 2006

Latin American markets had another good year in 2006. The liquidity environment remained supportive, credit quality continued to improve, and concerns that the heavy electoral calendar would increase volatility did not materialize. Latin America continued to reap the benefits from the commodities boom, while rising oil prices during most of the year continued to be a net positive for oil exporting countries; together with a significant increase in remittances from Latin Americans abroad they contributed to increase the region's current account surplus. Latin American stocks surged to a fo…

Capital flows to Latin America: quarterly developments

In the second quarter of 2006, a hearty dose of volatility returned to financial markets. During May and June, uncertainty towards the global economic outlook amid rising interest rates prompted investors to abandon riskier markets around the world. Stocks in emerging markets plummeted as a result, while bond spreads widened. The May-June turbulence was the first test of the progress achieved by emerging market countries in strengthening economic fundamentals and reducing the burden of foreign debt. Emerging markets rebounded after volatility subsided, with stocks recovering much of their earl…

Exploring the patterns and determinants of U.S. antidumping actions against Latin American imports, 1980-2004

This paper presents data on trends in U.S. antidumping filings against Latin America and Caribbean nations since 1980, investigates the economic determinants of these cases, and explores the effects for economies of the region. Of 2438 antidumping cases filed from 1995 to 2003, the U.S. filed 329 cases, 36 of these against Latin America. By way of comparison, 513 cases were filed by Latin American and Caribbean nations, with 113 of these targeting other Latin American countries and 57 cases directed at the U.S. Over the longer period from 1980-2004, the countries of the region were targeted by…

Capital flows to Latin America: first quarter 2006

Asset prices in emerging markets rallied to record highs in the first quarter of 2006, with bonds and equities posting strong performances on top of already remarkable 2005 gains. Spreads on dollar-denominated bonds issued by Latin American borrowers tightened by 68 basis points in the first quarter of the year, according to the Latin component of J.P. Morgan's EMBI+ index, while the Morgan Stanley Capital International (MSCI) for Latin America, an indicator of stocks' performance, increased by 15%. Emerging and Latin American markets continued to be supported by active debt managem…

United States economic outlook: quarterly developments

Capital flows to Latin America: year end 2005

Emerging market bond spreads tightened to record low levels in 2005, as a result of the search for yield in face of ample global liquidity and improving fundamentals in emerging market countries. According to J.P. Morgan, most of the EMBI Global's 8.96% total return in 2005 was derived from spread tightening, which totaled 110 basis points in 2005. The EMBI+ spreads tightened 111 basis points and its Latin component tightened 137 basis points in 2005. Emerging and Latin American markets were also supported by active debt management, as countries took advantage of the favorable external en…

Capital flows to Latin America: 2005 highlights

In 2005, abundant global liquidity, as well as low bond yields and flat yield curves, encouraged investors to seek higher returns in emerging markets, compressing credit spreads and helping borrowers to increase new bond issuance and engage in liability management. Investors were also encouraged by improving credit quality in emerging markets, pouring record amounts of money in mutual funds specializing in emerging market nations, helping to raise the total private capital flowing to those countries to unprecedented highs. Against this backdrop, spreads reached record low levels (below pre-As…

United States economic outlook: quarterly developments