A second-generation model of currency crises is combined with a standard model ofbanks as providers of insurance against liquidity risk. In a pegged exchange rateregime, after funds have been committed to the banks, news arrives about the qualityof the banks’ assets and about the exchange rate...

Genuine participation in the development process on the part of beneficiaries and other affected people is critical to sound project design, effective implementation, efficient management and sustainability. Nowhere is this more evident than in environmental assessment (EA). People's...

Ahead of the Uruguay Round accord of the General Agreement on Tariffs and Trade (GATT) in December of 1993, numerous developing countries, especially in Latin America, embarked on a process of unilateral trade liberalization. During the late 1980s and early 1990s, bound tariffs were instituted,...

The impact of risk on agriculture and the alternative ways of dealing with it has captured the attention of economists and policy makers for a long time. In recent years, the issue has gained renewed interest. Many countries have started policy reforms aimed at liberalizing domestic markets,...

During the past decade, many countries in Latin America and the Carib-bean that previously were plagued by high inflation, a large debt burden, and low growth have transformed themselves into stable, capital-receiv-ing, and growing economies. They achieved this by implementing high-quality...

This paper examines the main distinctions between the General Agreement on Tariffs and Trade (GATT) and regional trading arrangements (RTAs), noting that under the former, liberalization of trade is based on the most favored nation (MFN) principle, while under the latter, there is a departure...

The water and sanitation sector in Latin America and the Caribbean is facing a crisis of confidence. The return of cholera to the region in 1991 was a symptom of deep seated problems and exposed the fragility and inadequacy of publicly operated water supplies and sanitation systems. Despite...

In most countries, water is still regarded as public property. Public officials decide who gets it, at what price, and how it is used. The government also takes responsibility for building and operating the necessary hydraulic infrastructure for water delivery. The track record of such...

This report examines the environment for doing business in Perú following the far-reaching reform program instituted in 1990. It has never been easy to do business in Perú. This is a powerful reason why, amid such potential, Perú remains a poor and divided country. For business to flourish a...

The World Development Report 1994 (New York: Oxford University Press) demonstrates that infrastructure can support economic growth, reduce poverty, and make development environmentally sustainable. The economic returns on infrastructure investment and rehabilitation are high. In Latin America...