This article gives a comparative description of three different
general structural pension reform models applied in 12 Latin American countries, analysing their key concepts. In its main part, it analyses and suggests policies to deal with the 11 challenges that must be faced in such reforms: the decline in labour force coverage; the growing failure to pay contributions; the faults due to imperfect competition among pension fund management companies; the continuing high level of administrative
costs; the accumulation of capital, yet without solid evidence that this has had a positive impact on…
In the light of the extent of global poverty and the challenge
presented by the Millennium Development Goals for its reduction, this article analyzes one of the clearest and most effective ways of reducing poverty: trade liberalization -especially agricultural trade- by the industrialized countries. 75 percent of all the poor worldwide are in the rural sector of the developing countries, and the agricultural products that these countries could sell face protectionist barriers -tariffs, nontariff measures, subsidies- imposed by the industrialized countries. This article examines the topic in de…
Although in Latin America public debt-to-GDP ratios continue to
be generally lower than in other emerging countries, it has nevertheless not been possible to avoid liquidity problems, which some authors attribute to the low level and high volatility of public revenue, the weakness of domestic financial systems, and the mediocre quality of fiscal institutions. This article also emphasizes some exogenous factors, however. The combination of low economic growth rates and devaluations in a context of dollarized liabilities has given rise to a huge snowball effect , which is what has com…
This article deals with the fiscal and financial relations between the
national government and the provincial governments in Argentina during the last 15 years, identifying the factors which help to explain the high degree of conflictivity of those relations. In view of the institutional roots of the conflict, a historical review is made in order to place the recent problems and future discussion in a long-term context. First of all, the development of federalism in Argentina and the evolution of the various forms of autonomy of the provinces is examined, followed, in the central section of th…
Brazil is now one of the most decentralized federative countries in
the world, with the special feature that its decentralization is not the result of an economic strategy, but of a political initiative of the 1988 Constitution. The distribution of income and expenditure between the different spheres of government -central, state and municipal- shows the considerable relative importance of the subnational levels of government. Decentralization has not prevented extraordinary progress in the structural reform of the Brazilian public finances in recent years. The Fiscal Responsibility Law consol…
This study seeks to answer two questions: how and why has the
distribution of labour income changed in Central America? and why does Costa Rica display greater equity? In order to answer these questions, a technique based on the estimation of earnings equations is used. The direction of the changes in inequality is not uniform and depends on the indicator used. Although only Costa Rica and Guatemala show an unambiguous deterioration in the 1990s, there are some phenomena common to all the labour markets studied that have contributed to increasing inequality. The most important of these is the …
Preocupa deterioro de la situación laboral Ser joven en Iberoamérica Columna de opinión de José Luis Machinea: Por un pacto de cohesión social Precisiones: Mercados de carbono: oportunidad para América Latina y el Caribe Indicadores Rezago económico provoca deterioro social en Haití Publicaciones recientes Calendario…
Latin America and the Caribbean are still far behind other regions around the world in terms of research and development. While the United States, Japan and the Republic of Korea invest from 2.5 to 3 points of their Gross Domestic Product (GDP) in this area, and the European Union almost 2 points, our continent as a whole invests barely 0.5 points of GDP.
The investment gap translates into an important difference in economic productivity. This calls for public policies to create and develop innovative skills capable of making the most of rapid technological change and economic integration, st…
América Latina y el Caribe aún se encuentra muy rezagada en comparación con otras regiones del mundo en términos de investigación y desarrollo. Mientras Estados Unidos, Japón y la República de Corea invierten en este rubro entre 2,5 y 3 puntos de su producto interno bruto (PIB) y la Unión Europea cerca de 2 puntos, nuestro continente en su conjunto destina apenas 0,5 puntos del PIB.
Esta brecha en la inversión se traduce asimismo en una importante diferencia en la productividad de las economías. Por eso es necesario la adopción de políticas públicas destinadas a crear y desarrollar capacidade…
El propósito de este trabajo es estimar las externalidades de la generación de energía eléctrica a base de combustibles fósiles en México. En la actualidad, la electricidad se genera en el mundo principalmente con este tipo de combustibles, lo que conlleva impactos locales, regionales y globales, tanto para la salud como para el medio ambiente. El costo de estos impactos, denominado costo externo, no ha sido incorporado al precio de la electricidad en ningún país, por el efecto económico que generaría.A fin de evaluar las externalidades de la producción termoeléctrica en México, el presente tr…
Resumen El objetivo de estas notas apunta a revisar los resultados de las negociaciones en el CAFTA sobre productos agropecuarios que se consideran vulnerables a la competencia externa. El reconocimiento por ambas partes negociadoras sobre la necesidad de establecer un trato diferenciado para este tipo de productos en el proceso de liberalización comercial hizo posible la obtención de amplios plazos de desgravación, así como el establecimiento de mecanismos adicionales de defensa comercial para compensar las diferencias entre ambos mercados y evitar posible daños al sector. No obstante, cuan…
During the second quarter, the prospect of an unexpected U.S. interest rate increase weakened investors' appetite for risk, and capital flows to Latin America faded in response. Latin American spreads increased by 71 basis points during the quarter, up to 607 bps at the end of June, from 536 bps at the end of March. Quarterly issuance in Latin America also suffered, dropping to US$4.7 billion, a level not seen since the last quarter of 2002. As a result, Latin America moved behind Eastern Europe, which issued US$6.3 billion or 39% of total emerging market issuance, compared to 29% for L…
In the third quarter of 2004, the positive interaction of external and domestic factors in the Latin American region created a favorable environment for capital inflows. Among the external factors, an unprecedented amount of global liquidity, combined with an environment of low risk-free rates and a search for yield, was one of the main driving forces in the third quarter. Liquidity and low rates benefited not only emerging market debt, but all risky assets, which have become highly correlated among themselves. However, in the case of emerging markets, and Latin American markets in particular,…