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Latin America and the Caribbean Economic Review, April 2024 - Competition: The Missing Ingredient for Growth?
(Washington, DC: World Bank, 2024-04-10) Maloney, William; Garriga, Pablo; Meléndez, Marcela; Morales, Raúl; Jooste, Charl; Sampi, James; Araujo, Jorge Thompson; Vostroknutova, Ekaterina
Latin America and the Caribbean has made slow but consistent progress addressing the imbalances induced by the pandemic in an international environment that is just now showing signs of stabilizing. Despite favorable macroeconomic management, high interest rates and fiscal imbalances remain challenging while growth rates remain lackluster due to long-standing structural issues. Looking forward, an aging workforce and rising violence will increasingly complicate policy. This report focuses particularly on weak competitive forces as a source of low productivity, low growth, and low welfare in LAC. It emphasizes the need for effective competition institutions, pro-competition regulatory frameworks, complementary policies to improve the capabilities of workers and firms, and enhanced innovation systems, to prepare local industries to reach the technological frontier and face global competition. Furthermore, the report underscores the need for reforms to prevent large businesses from exerting undue political influence over policy decisions.
Jobs and Growth: Brazil's Productivity Agenda
(Washington, DC: World Bank, 2018-06-22) Dutz, Mark A.
Brazil approaches its 2018 election with an economy that is gradually recovering from the deepest recession in its recent economic history. However, for many Brazilians, the recovery has not yet translated into new and better jobs, or rising incomes. This book explores the drivers of future employment and income growth. Its key finding: Brazil needs to dramatically improve its performance across all industries in terms of productivity if the country is to provide better jobs for its citizens and generate lasting gains in incomes growth for all. This is particularly important as Brazil is aging rapidly and the boost the country has enjoyed thanks to its young and growing labor force in the past decades will disappear in just a few years’ time. The book recommends a change in the relationship between the state and business, from rewarding privileged incumbents to fostering competition and innovation—together with supporting workers and firms to adjust to the demands of the market. The book is addressed to all scholars and students of Brazil’s economy, especially those interested in why the country’s economic performance has not kept up with earlier achievements since the reintroduction of democracy in the mid-1980s. Its conclusions are urgent and pertinent but also optimistic. With the right policy mix, Brazil could enter the third century of its independence in 2022 well on track to join the ranks of high income countries.
World Development Report 2011: Conflict, Security, and Development
(World Bank, 2011) World Bank
The 2011 World development report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility and secure development. The key messages are important for all countries-low, middle, and high income-as well as for regional and global institutions: first, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion-the likelihood of violent conflict increases. Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. Third, confronting this challenge effectively means that institutions need to change. International agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Fourth, need to adopt a layered approach. Some problems can be addressed at the country level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity Fifth, in adopting these approaches, need to be aware that the global landscape is changing. Regional institutions and middle income countries are playing a larger role. This means should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries.
World Development Report 2010: Development and Climate Change
(Washington, DC, 2010) World Bank
Thirty years ago, half the developing world lived in extreme poverty today, a quarter. Now, a much smaller share of children are malnourished and at risk of early death. And access to modern infrastructure is much more widespread. Critical to the progress: rapid economic growth driven by technological innovation and institutional reform, particularly in today's middle- income countries, where per capita incomes have doubled. Yet the needs remain enormous, with the number of hungry people having passed the billion marks this year for the first time in history. With so many still in poverty and hunger, growth and poverty alleviation remain the overarching priority for developing countries. Climate change only makes the challenge more complicated. First, the impacts of a changing climate are already being felt, with more droughts, more floods, more strong storms, and more heat waves-taxing individuals, firms, and governments, drawing resources away from development. Second, continuing climate change, at current rates, will pose increasingly severe challenges to development. By century's end, it could lead to warming of 5°C or more compared with preindustrial times and to a vastly different world from today, with more extreme weather events, most ecosystems stressed and changing, many species doomed to extinction, and whole island nations threatened by inundation. Even our best efforts are unlikely to stabilize temperatures at anything less than 2°C above preindustrial temperatures, warming that will require substantial adaptation. High income countries can and must reduce their carbon footprints. They cannot continue to fill up an unfair and unsustainable share of the atmospheric commons. But developing countries whose average per capita emissions are a third those of high income countries need massive expansions in energy, transport, urban systems, and agricultural production. If pursued using traditional technologies and carbon intensities, these much-needed expansions will produce more greenhouse gases and, hence, more climate change. The question, then, is not just how to make development more resilient to climate change. It is how to pursue growth and prosperity without causing "dangerous" climate change.
The Challenge of Inclusion
(World Bank, 1997-09-23) Wolfensohn, James D.
This is the address to the Board of Governors, delivered by Mr. James D. Wolfensohn, President of the World Bank, in Hong Kong, China, on September 23, 1997. This year's core theme is the challenge of inclusion, bringing people into society who have never been part of it before, the main reason why the World Bank Group exists. On reviewing the state of development circa 1997: despite improved social indicators, the rapid rise in life expectancy levels, and freedom ascending, much still needs to be improved. In East Asia, inequities between rural, and urban areas, and between the skilled, and unskilled are becoming more widespread; in the countries of the former Soviet Union, the old, and unemployed are more vulnerable amidst the turbulence caused by the transition to market economies; in parts of Latin America, unequal access to education, and health care, and disparities in income hinder progress; and, in many of the poorest countries, population growth continues to run ahead of economic growth. Considering the challenge ahead, the message for countries is to educate "your" people; ensure their health; give them voice, and justice; strong financial systems; and, sound economic policies, recognizing the link between good economic performance, and open governance, to build the broad social consensus. The effectiveness of the development community lies in building inclusive partnerships, between the governments, and the people, involving bilateral, and multilateral assistance, as well as nongovernmental organizations, and the private sector, based on good policy environments, with a look at renewing strategies. The Bank's responsiveness to this challenge has been that of commitment to the quality of work; increased accountability to measure performance; and, improved dialogue with governments. Key strategic points of change are to mainstream social issues, increase capacity building, forge sustainable development in agriculture; promote private sector participation, and strengthen financial systems.