The Mexican maquila industry and the environment: an overview of the issues

The Mexico-United States border region comprises one of the most dynamic and complex industrial areas in the world. The region is characterized by high population growth and increasing urbanization and industrialization, all of which is taking place in a context of rapid political and economic change (Rincón, 2000). The Mexico-located maquila in-bond industry is a key player in this development. In the 1993-98 period, the maquilas accounted for 41.5% of the average Mexican export value (Dussel, 2000), and in the 1994-2000 period its share of foreign direct investment grew from 6% to 21…

Euro and the financial relations between Latin America and Europe: medium- and long-term implications

Abstract The internationalisation of the euro is in its initial stages and it is still difficult to draw any definitive conclusions regarding its scope and its implications for Latin America. Indeed, the emergence of an internationally used currency is slow and subject to inertial forces. Nonetheless, several fairly robust conclusions can be inferred from the results of the document. The most plausible medium- to long-term international scenario seems to be development of an asymmetrical duopoly between the euro and the dollar. In a context of scant international monetary cooperation, th…

Regional integration and the issue of choosing an appropriate exchange-rate regime in Latin America

Abstract Behind the discussion on optimal exchange-rate regimes lies the need to achieve external and internal equilibrium, and thus create an appropriate macroeconomic climate for sustained growth and development. The optimality and feasibility of exchange-rate regimes in individual Latin American and Caribbean countries must take into consideration several parameters linked to microeconomics, open macroeconomics, and political economy aspects. More recently, the discussion has incorporated the regional dimension and the possibility of joining monetary unions to the set of feasible national s…

The transformation of collective action in Latin America

We are witnessing the disappearance of the traditional paradigm that viewed the structural position as the determining factor in shaping collective action and social actors. Because of the structural and cultural changes that have occurred in the world and the region -the transformation of Latin America's weak national Statecentred industrial society and the break-up of the traditional relationships between State and society- collective action is tending to take shape mainly along four axes: political democratization; social democratization or the struggle against exclusion and for citize…

Global economic developments, 2000-2001

Executive Summary The global economy is experiencing a recession, which originated in the United States and is affecting developed and developing economies alike. Between the second and third quarter of 2001, the United States GDP growth rate decreased from 2.6 per cent to 1.2 per cent. For the same period, the European Union's GDP growth rate declined from 2.4 per cent to 1.7 per cent. For Latin America and the Caribbean the growth will fall from 4 per cent in 2000 to 1 per cent in 2001. A central issue regarding the current recession is whether it will be short lived or rather …

International tax cooperation and capital mobility

The international mobility of capital and the geographical dispersion of firms have clear advantages for the growth and modernization of Latin America and the Caribbean,but they also pose great challenges.Modern principles of capital taxation for open developing economies indicate the need to find the correct balance between the encouragement of private investment and the financing of social infrastructure, both of which are necessary for sustainable growth.This balance can be sub-optimal when countries compete for foreign investment by granting tax incentives or applying conflicting principle…

Incorporation of special and differential treatment in international trade agreements and the implications for Caribbean economies

The provision for special and differential treatment favoring developing economies in multilateral trade agreements recognizes that countries compete on an unequal footing. Special and differential treatment can be traced to early development theories and to the reports of the preparatory committee for the formation of the International Trade Organization (ITO). The General Agreement on Tariffs and Trade (GATT, 1947) addressed developing countries' needs for an asymmetrical treatment in international trade relations. Later on, the incorporation of Annex IV to the GATT (1964) p…

The United States and Central America proposed Free Trade Agreement implications for the Caribbean region

The Doha Ministerial and its Implications for Caribbean Economies

Food Security Issues for Caribbean