In this paper we test the impact of elections on fiscal policy in Latin American economies in comparison to OECD countries over the period 1990-2006. We find that in Latin American countries, the average primary balance declines by an amount close to 0.7 per cent of GDP during an election year,...

Over the last five years, most Latin American governments have made considerable strides in managing the composition of their public debt, while reducing their foreign-currency exposure. Issuing public debt in local currency is not new for Latin America; what is new, however, is the widespread...

During the 1990s and the 2000s a variety of crises affected the stability of international capital markets: from the European Monetary System crisis in 1992-93 and the emerging market crises to today’s financial crisis have been present in the arenas of capital markets. These crises stimulated...

Are the financial markets politically correct? In other words, do they have preferences when it comes to political regimes or partisans? This issue has often been explored with regard to foreign direct investment (FDI) or public development aid, but rarely in relation to portfolio flows in...

Against a backdrop of sustained global growth and high commodity prices, Africa has experienced its best economic performance in many years. While recent economic performance is not merely driven by favourable external factors, African economies still lack proper “shock-absorbers” to...

China’s and India’s strong appetite for energy and metal has boosted international prices and the volume and value of African exports. China in particular has become the main trade partner for a number of African countries providing cheap manufactured goods and reducing Africa's dependence...

Africa’s economic progress now seems on a firm footing after a third straight year of satisfactory performance in 2005, with overall growth of 5 per cent, average per capita income up 3 per cent and inflation steady at under 10 per cent. Two-thirds of the 30 countries surveyed in the Africa...

Strong commodity prices are driving Africa’s growth, which should be about 6 % in 2007 and 2008. External vulnerability is a function of its limited integration into international trade and investment flows. Africa should mobilise external sources more strategically. In this respect, aid for...

Bond financing has replaced bank loans and other sources of capital flows as a major source of funding for emerging markets. This shift has been particularly impressive in Latin America. Disentangling the dynamics of emerging bond markets and the information flow about them has attracted the...

. Developing countries will account for almost all the increase in the world's labour force over the next 25 years; most countries, especially in Africa, will experience very rapid labour force growth. . Labour-intensive development has been spectacularly successful in some countries and others...