Latest activity

Blog: 4 things to know about Argentina’s economy

Rosamond Hutt
November 27, 2015 

Opposition leader Mauricio Macri has secured victory in Argentina’s presidential run-off, but the business-friendly mayor of Buenos Aires will have his work cut out turning around Latin America’s third biggest economy. Macri’s relatively narrow win over the ruling party’s candidate Daniel Scioli on Sunday puts an end to 12 years of left-leaning government under the departing president Cristina Fernández de Kirchner and her late husband Néstor Kirchner. Macri, 56, a former president of Boca Juniors, one of Argentina’s most popular football teams, inherits an ailing economy with a ballooning fiscal deficit, one of the highest inflation rates in the world, capital controls and economists warning of unsustainable government spending.

Research Review: Investment in Emerging Markets: We are not in Kansas anymore…Or are we?

Nicolas E. Magud and Sebastián Sosa
November 26, 2015 

We document that (i) although private investment growth in emerging markets has decelerated in recent years, it came down from cyclical highs and remains close to pre-crisis trends; and (ii) investment-to-output ratios generally remain close to or above historical averages. We show that investment is positively related to expect future profitability, cash flows and debt flows, and negatively associated with leverage. Critically, it is also positively related to (country-specific) commodity export prices and capital inflows. The latter help relax firms’ financial constraints, which tend to be tighter for smaller firms and those less integrated to international financial markets. Lower commodity export prices and expected profitability, a moderation in capital inflows, and increased firm leverage account for the bulk of the recent investment deceleration. Looking forward, prospects for a recovery of business investment are not promising.

Blog: Empoderar a la mujer y abordar la desigualdad del ingreso

Sonali Jain-Chandra, Kalpana Kochhar and Monique Newiak
November 25, 2015 

A pesar de los avances logrados en materia de empoderamiento y oportunidades económicas, persisten amplias brechas de género, que las autoridades económicas deben abordar urgentemente. En la mayoría de los países, el número de hombres que trabajan es mayor que el de mujeres, y estos ganan más por realizar un trabajo similar. Además, existen importantes brechas de género en el acceso a la educación, la salud y el financiamiento en diversos países. Hay cada vez más datos que muestran que la falta de equidad de género impone grandes costos económicos dado que afecta la productividad y lastra el crecimiento.

Working papers: Latest Research

New entries on 24 November 2015

Blog: Poverty in Rural Brazil: It Is All About Assets

Sergei Soares (IPC-IG), Laetícia R. de Souza (IPC-IG), Wesley Silva (Statistical Consultant) and Fernando Gaiger Silveira (Ipea/IPC-IG)
November 23, 2015 

This One Pager synthesises the key findings of the study of rural poverty profiles in the North and Northeast regions of Brazil. Poverty and extreme poverty decreased significantly in the country between 2004 and 2013. The prevalence of poverty decreased from 20 per cent to little more than 9 per cent of the population, while the prevalence of extreme poverty decreased from 7 per cent to 4 per cent. However, currently it is difficult to maintain this downward trend, due to a slowdown in its main drivers. The labour market is worsening by the day, while social expenditures face significant scrutiny in the current context of fiscal adjustment.

Blog: Tiempos inciertos, decisiones difíciles

Vitor Gaspar y Alejandro Werner
November 20, 2015 

Tras un período de fuerte crecimiento, la actividad económica en América Latina ha experimentado una marcada desaceleración. Para las seis principales economías financieramente integradas de la región (AL-6) —Brasil, Chile, Colombia, México, Perú y Uruguay— se prevé un crecimiento negativo este año. La intensificación de las presiones en los mercados financieros y el escaso margen de acción de las políticas están poniendo muy a prueba la credibilidad de las autoridades. En este complicado entorno, los encargados de las políticas en los países de AL-6 enfrentan algunas cuestiones difíciles: ¿Cómo encontrar el equilibrio adecuado entre la suavización del ajuste y el afianzamiento de la credibilidad? ¿Qué función debería cumplir la política fiscal en este nuevo, incierto y cambiante entorno?

Opportunities: Call for papers

New entries on 19 November 2015

  • Fourth Workshop in Economic Development, organized by the Economics Department of PUC-Chile. Submission Deadline: November 27, 2015.
  • Pensions and Labor Markets: Challenges for the Americas, organized by LACEA Labor Network. Submission Deadline: December 15, 2015.
  • “Inequality in Latin America", organized by Revista de Economía Mundial (REM)/The World Economy Journal. Submission Deadline: January 15, 2016.
  • Datos para el Desarrollo, organisado por el Laboratorio de ideas del Banco Interamericano de Desarrollo, GobAPP. Submission Deadline: January 16, 2016.

Blog: Why is empowering women important for rural development?

Francisco Obreque (Senior Rural Development Specialist, The World Bank)
November 18, 2015 

“When the company let us down, we only imposed a fine. We must be firm with companies and with vendors, otherwise they fail to fulfill their end. This is how to move the project forward”. This testimony impressed me a lot when I heard it from an indigenous woman in Bolivia, who was proud to be part of the steering committee and defend the interests of the community in the project.

Working papers: Latest Research

New entries on 17 November 2015

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