Migration and Remittances in Latin America and the Caribbean: Brain Drain Versus Economic Stabilization

2019-03-25T14:06:24-04:00June 29, 2017|

By Svetlana Cerovic and Kimberly Beaton

June 29, 2017

Versions in Español (Spanish) and Português (Portuguese)

People waiting to withdraw money in La Cruz, Costa Rica: emigrants from Latin America send home sizable remittances (photo: Juan Carlos Ulate/Reuters/Newscom)

Many people from Latin America and the Caribbean live and work abroad. Migrants have been motivated to leave their home country in search of better job opportunities and, in some cases, a more secure environment. Their families at home often benefit from the remittances migrants send home, which help improve their standard of living, health care, and education. Remittances also provide financial resources for trade and investment, which helps boost the country’s growth. […]

Rethinking Policy at the IMF

2019-03-27T09:04:12-04:00June 6, 2016|

By iMFdirect

The global financial crisis led to a broad rethink of macroeconomic and financial policies in the global academic and policy community. Eight months into the job as IMF Chief Economist, Maury Obstfeld reflects on the IMF’s role in this rethinking and in furthering economic and financial stability.

[…]

Raising Long-Run Growth in Latin America and the Caribbean—A Complex(ity) Issue

2019-03-27T16:08:47-04:00June 9, 2015|

By Fabiano Rodrigues Bastos and Ke Wang

(Versions in Español and Português)

Growth in Latin America and the Caribbean has weakened significantly over the last few years. Part of this weakness appears to be here to stay, and IMF economists have marked down medium-term growth projections. This story sounds eerily familiar, given the region’s past difficulties to improve its comparative growth performance.

Abstracting from the “golden decade” from 2003 to 2011, when rising commodity prices powered a strong expansion, why has the region been unable to sustain sufficiently high growth rates to catch up with more advanced economies? Part of the answer is Latin America’s modest success in branching out into more sophisticated—or complex—goods.

[…]

Cambodia: Moving Beyond The Frontier

2017-04-14T02:13:10-04:00December 4, 2013|

MD's Updated HeadshotBy Christine Lagarde

Cambodia is the first leg of my Asia trip. This is a country that has already grown by leaps and bounds, and now stands at the frontier of becoming an emerging market economy in the heart of the most dynamic hub of the global economy.

I could feel this energy and excitement everywhere. Cambodians, especially young Cambodians, have big dreams and substantial societal aspirations. They want dignity and respect, so that they can fulfill their potential, both as individuals and as a nation. They want to embrace the wider world and all that it has to offer. They want good governance and strong institutions, which are essential to underpin economic development, empower people and ensure that prosperity is broadly shared.

I heard these themes consistently—from inspiring women leaders, from dynamic young economists, and from the students at the Royal School of Administration, where I gave a speech on how Cambodia can keep its forward momentum.

[…]

Mideast Braces Itself for a Multi-Year Transition

2017-04-15T14:16:24-04:00October 26, 2011|

My core takeaway from all these events is that the underlying sense of optimism in the promise of the Arab Spring is very much there, but there is also a growing recognition that managing the short-term transition will be even more difficult with the persistence of economic pressures and rising social expectations.

The MENA Jobs and Growth Challenge: How Can Finance Help?

2017-04-15T14:22:23-04:00May 23, 2011|

Most policymakers in the Middle East and North Africa agree that stronger economic growth is a crucial component of any strategy to address the region’s persistently high levels of unemployment and raise its living standards. One question that arises is: What role can the financial sector play? It is well known that a dynamic and vibrant financial sector will improve economic outcomes for a country, leading to faster and more equitable economic growth. The key to answering this question, therefore, is to look to the past and examine how the financial sector has contributed historically to growth in the region. Unfortunately, the experience in the Middle East and North Africa has not been as successful as in other regions. How, then, can policymakers in the region enhance the financial system’s contribution to growth?

BRICs and Mortar—Building Growth in Low-Income Countries

2017-04-15T14:24:23-04:00May 9, 2011|

By Dominique Desruelle and Catherine Pattillo

(Versions in 中文PortuguêsEspañol,  Русский)

The so-called BRIC nations—Brazil, Russia, India and China—could be a game changer for how low-income countries build their economic futures.  

The growing economic and financial reach of the BRICs has seen them become a new source of growth for low-income countries (LICs).

LIC-BRIC ties—particularly trade, investment and development financing—have surged over the past decade. And the relationship could take on even more prominence after the global financial crisis, with stronger growth in the BRICs and their demand for LIC exports helping to buffer against sluggish demand in most advanced economies.

The potential benefits from LIC-BRIC ties are enormous.

But, so too are challenges and risks that must be managed if the LIC-BRIC relationship to support durable and balanced growth in LICs. […]

Warning! Inequality May Be Hazardous to Your Growth

2017-04-15T14:25:28-04:00April 8, 2011|

Some people dismiss inequality and focus on overall growth—arguing that a rising tide lifts all boats. But when—as in the U.S. in recent decades—a handful of yachts become ocean liners while the rest remain lowly canoes, something is seriously amiss. In fact, inequality matters. And it matters in all corners of the globe. Medical researchers ask how smoking, weight, and so on influence life expectancy. We wondered, what keeps long periods of high growth going? Somewhat to our surprise, income inequality stood out as a key driver. The upshot? It is a big mistake to separate analyses of growth and income distribution. A rising tide is still critical to lifting all the boats. But lifting up the lowest boats may actually help to keep the tide rising!
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