The COVID-19 pandemic brought a halt to the expansion of Latin America’s middle class and pushed millions back into poverty. Reversing this pattern requires addressing the region’s vulnerability to economic shocks and strengthening countries’ resilience.
The “middle-income trap” has become a broad designation trying to capture the many cases of developing countries that succeeded in evolving from low- to middle-levels of per capita income, but then appeared to stall, losing momentum along the route toward the higher income levels of advanced economies. We need to approach middle-income countries as being in a complex transition phase between accumulation and innovation-based economies. Individual middle-income country experiences of falling into a “trap” may be approached as cases of lack of or failing performance in footing the bill in terms of appropriate policies and institutions.
Latin America and the multilateral world — Otaviano Canuto Today's episode with Otaviano Canuto (ex World Bank, IMF, IDB) covers the current state of the region's economy, the role of multilateral organizations, Brazil's economic prospects and the post-COVID scenario for Latin America. ------------------- Macroeconomic Policies in times of COVID-19 in Emerging Markets: Early Lessons Moderator: Andrés Schipani, East and Central Africa Correspondent, Financial Times Speakers: - Otaviano Canuto, Senior Fellow, Policy Center for the New South - Karim El Aynaoui, President, Policy Center for the New South, Dean, Faculty of Governance, Economics and Social Sciences, Mohammed VI Polytechnic University - Célestin Monga, Professor of Public Policy, Harvard Kennedy School
Many donor countries seem eager to see middle-income countries “master out” and graduate to a non-client status in multilateral development institutions before fully achieving their development potential. We argue that such institutions can still significantly contribute to the sustainable development of Middle Income Countries, while also seizing many benefits from this relationship
How the IMF and World Bank came into existence, why they are needed, what were the problems these institutions were designed to fix? So why has it seemed that, in recent decades, these institutions have become more concerned with promoting capital account liberalization more so than anything else? A case could be made that some of the prescriptions of the IMF and World Bank may not actually improve the economic prospects of the countries they engage with. What is your take on their effectiveness? Can the IMF do a better job of perhaps staying away or “doing no harm” by choosing not to lend to countries who are insolvent, or are there actually things that they can do to help? So, could these institutions use a healthy dose of not only educational diversity, but also geographical diversity in its leadership and staff? Is there a world where we shift away from austerity being a condition for lending, or is the IMF so concerned about getting its money back—and a decent return—that they feel they have to impose these measures so they can appease the US and other member countries that hold large voting blocs? If the IMF and World Bank are to be truly international institutions, with input from all of its member countries, doesn’t the voting structure have to change, and isn’t the current voting framework quite different from how it was when the IMF and World Bank were created? So, what are some things they should be proud of, and what do you believe should be the role of the IMF and World Bank in the 21st century?
With Latin America and the Caribbean potentially facing years of difficulties due to the pandemic and related economic crises, attention has shifted to what multilateral institutions like the International Monetary Fund (IMF) might do to help. There’s no doubt they can play a crucial role in preventing another lost decade in the region. But these institutions will also face limitations because of capital constraints and other factors.
How will organizations such as the IDB, IMF, and OAS help Latin America emerge from the wreckage of COVID-19? What kind of support and cross-border leadership is crucial to ensure the region doesn’t endure another “lost decade”?
Au cours de leurs 75 années d’existence, les institutions nées à Bretton Woods, que l’on appelle souvent les soeurs jumelles de Bretton Woods, se sont transformées, pour répondre à l’évolution de l’économie mondiale et aux défis que celle-ci a posés. Plus récemment, trois changements dans l'ordre international ont apporté une nouvelle série de défis: l'émergence de nouveaux pôles géo-économiques; la prédominance des politiques nationalistes par rapport au multilatéralisme; et la fragmentation du système des institutions plurinationales.
This note approaches the relationship between natural wealth and economic growth, using the case of Sub-Sahara African economies as an illustration. Delving into recent World Bank reports, it highlights how a sustained positive correlation between natural capital and GDP growth happens through the transformation of the former into other forms of assets: produced capital, human capital and other intangible assets. Governance features and the quality of macroeconomic policies are of the essence for such a benign trajectory to take place.
Capital Finance International (Spring, 2019) China’s economic growth has been sliding since 2011, while its economic structure has gradually rebalanced toward lower dependence on investments and current-account surpluses. Steadiness…
Throughout my last 15 years working in multilateral institutions, many times around the world I was asked to speak about the success of poverty reduction in Brazil during the…
In their 75 years of existence, the twin institutions born at the Bretton Woods Conference have undergone adaptation and transformation in response to the evolution of the world economy and the challenges it has posed to them. They will have to mutate and adapt to operate in a context of institutional fragmentation and possible arm-breaks between shareholders/members to continue fulfilling their missions.
China’s economic growth has been in a downslide trend since 2011, while its economic structure has gradually rebalanced toward lower dependence on investments and current-account surpluses. Steadiness in that trajectory has been accompanied by rising levels of domestic private debt, as well as slow progress in rebalancing private and public sector roles. As the ongoing trade war with the US continues to unfold, it remains unclear at which growth pace China’s rebalancing will tend to settle.
Posted at DEVEX By Sophie Edwards // 04 February 2019 LONDON — On Oct. 2, 2012, the World Bank’s Preston Auditorium is packed with staff waiting to catch a glimpse of their new…
The Wall Street Journal U.S. Contemplates Appointing First Female President of World Bank By Josh Zumbrun 24 January 2019 Copyright 2019 Dow Jones & Company, Inc. All Rights Reserved.…