This paper explores the qualitative and quantitative implications of optimal taxation in a developing economy when economic growth is endogenously determined. We differentiate this class of economies from a developed economy in two aspects: informal sector is quantitatively significant and...

This study assesses poverty in the microenterprise sector in Latin America, presenting stylized facts on potential poverty risk factors at the household and individual levels. The goal of the paper is to describe the main trends in the region and the scope of the paper is limited to a...

In this policy brief, we focus on the debates surrounding what has been called the "silent debt crisis" of the Caribbean. We discuss the level of debt at which the relation with economic growth turns from positive to negative. We also discuss, illustrated with simulations of the tradeoffs, how...

In the great majority of Latin American countries in the 2000s, economic growth took place and brought about improvements in almost all labour market indicators and consequent reductions in poverty rates. Across countries, economic growth was not all that mattered; external factors were...

Belize's 2008-2012 Country Strategy approved in June 2009 stated that the IDB would continuously monitor fiscal sustainability and calibrate its financing in accordance with changing country conditions. Rather than establishing specific sectors for IDB support, the Country Strategy identified...

During the 2000s Chile achieved rapid economic growth and improved most labour market indicators: the unemployment rate fell; the mix of employment by occupational position and sector improved; the educational level of the employed population, the percentage of registered workers, and labour...

During the 2000s, El Salvador experienced slow economic growth for Latin American standards. The country underwent a recession during the international crisis of 2008, but returned to pre-recession output level in 2011. Changes in labour market conditions were mixed. The unemployment rate fell,...

The Uruguayan story was one of declines in the early years of the 2000s in most indicators, followed by improvements in all of them. Economic growth was negative in the early years due to a severe economic crisis, positive and rapid thereafter except during the international crisis of 2008. Most...