This paper analyzes the aggregate effects of a revenue neutral fiscal-cum-social policy reform in a typical developing country that consists of two main changes: (1) the implementation of universal social insurance to replace the current dual social protection system (i.e., a reconfiguration of...

Conventional wisdom claims that fixed exchange rates provide more fiscal discipline than do flexible rates, but the recent experiences in Europe, the record of Sub-Saharan countries in the 1980s, and the history of stabilization attempts in Latin America cast empirical doubts on this wisdom. To...

This paper outlines some of the issues that affect small and medium sized enterprises (SMEs) in three areas: regulation, procurement, and dispute resolution. The work presented herein is part of the Bank's most recent efforts to develop new approaches and instruments to strengthen its role as a...

This country program evaluation (CPE) covers the 2007-2011 period. This evaluation pays particular attention to the relevance of the IDB's program in relation to Mexico's fundamental challenges, as well as to the Bank's strategy developed during the period in an effort to become more relevant in...

This Country Program Evaluation (RE-359) covers the period from 2005 to 2009. OVE's most significant recommendation stemming from the analysis is that, if this is one of the new administration's priorities, the next strategy should design an assistance program aimed at closing the gap that...

Global growth projections have waned since last year and growth may be suppressed below potential for several years to come. Lower global growth will, all things being equal, imply lower growth in Latin America and the Caribbean. At the same time, clear limits to the potential use of monetary...

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...

Ecuador's current political economy is largely a product of the boom that took place in the country's oil sector in the early 1970s. The pressure of heightened revenue flows created an oil-exporting factional democracy, and a dichotomy between policies focused on minimizing the pitfalls of...

This presentation examines the reasons behind poor economic performance in Latin America and the resulting economic and social costs, with a particular focus on Chile. The study concludes that the problem lies in the low productivity of the manufacturing and service sectors. Given the increasing...

This presentation aims to understand what is behind aggregate productivity and how it grows, expanding the scope beyond that of traditional studies -which tend to emphasize technological growth and manufacturing- to include total factor productivity (TFP) to reflect market inefficiencies. The...