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Peru Country Climate and Development Report

(World Bank, Washington, DC, 2022-11) World Bank Group

The Peru Country Climate and Development Report (CCDR) provides analysis and recommendations on integrating the country’s efforts to achieve economic development with the pursuit of emission reduction and climate resilience. The CCDR explores opportunities and trade-offs for aligning Peru’s development path with its recent commitments on climate change. Peru is highly vulnerable to climate change and needs urgent adaptation action. Peru can benefit from decarbonization policies, thanks to its mining, forestry and agriculture, and renewable energy resources. Peru has many opportunities to develop and implement comprehensive climate policies that also increase productivity and reduce poverty. A low-carbon, resilient development for Peru would require substantial institutional reforms, in addition to public and private investments.
Argentina Country Climate and Development Report

(World Bank, Washington, DC, 2022-11) World Bank Group

The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
New Approaches to Closing the Fiscal Gap

(Washington, DC : World Bank, 2022-10-04) World Bank

As the COVID‐19 crisis recedes, Latin America and the Caribbean (LAC) is back to work and looking forward. Reported deaths related to the pandemic are low and have plausibly converged to global levels. Yet low vaccination rates in some countries leave them vulnerable to new variants. In most countries, gross domestic product (GDP) and employment have fully recovered their 2019 levels, although forecasted growth rates might be said to be “resiliently mediocre”: banking systems appear sound, and rising debt burdens are manageable so far, but growth is not expected to exceed the low levels of the 2010 decade. Poverty in terms of income (monetary poverty) has largely receded with the economic recovery, but the longer‐term scars of the pandemic in terms of education and health have planted deep seeds of future inequality. Redressing these problems and undertaking the structural reforms needed to reach higher levels of growth and reduce poverty remain central on the policy agenda. The new and unwelcome entrant in the policy space is inflation. While comparable to advanced country levels and well managed by regional monetary authorities, inflation nonetheless is being propelled by forces that may give it more staying power than originally hoped. Finally, public deficits induced by the pandemic and the need to finance critical government programs and directions have opened a fiscal gap and led to constrained fiscal space. The need to close the fiscal gap, put debt on a sustainable footing, and generate fiscal space to finance necessary physical and social investments has led to a search for new revenues and in particular to pressure to increase income taxes. In looking at any tax hike, concerns center on the possible depressive effects on growth, overall progressivity, and possible incentives for informality. This report presents new evidence on these effects for value added taxes (VAT) and income taxes. It also advocates for steps to cut wasteful government spending and increase government efficiency - both to generate substantial resources and as an entry point to a broader agenda of state modernization and generating public trust.
Not There Yet: Slow Recovery and Many Left Behind as Latin America and the Caribbean Navigates the Ripples of the Pandemic - 2021 High-Frequency Phone Surveys - Wave 2

(World Bank, Washington, DC, 2022-09) World Bank ; United Nations Development Programme

To continue monitoring how the Coronavirus (COVID-19) pandemic has affected the welfare of households in the region, the World Bank and the United Nations Development Programme (UNDP) joined forces in 2021 to implement a second phase of High-Frequency Phone Surveys (HFPS) in Latin America and the Caribbean (LAC). A first wave was collected between May and July 2021, and a second between October 2021 and January 2022. This last wave takes the socio-economic pulse of households and measures the region's well-being almost two years into the pandemic. This note presents the emerging results in the areas of labor markets, income, food security, coping mechanisms, education, health, and gender.
Internet Access and Use in Latin America and the Caribbean: From the LAC High Frequency Phone Surveys 2021

(World Bank, Washington, DC, 2022-09) World Bank ; United Nations Development Programme

While most households in Latin America and the Caribbean use mobile broadband via smartphones, expensive fees and poor service quality pose major obstacles for potential users. In addition, power outages are a challenge for nearly 40 percent of existing mobile broadband users. Addressing the region’s need for faster, cheaper, and more reliable internet connections is thus a policy and investment priority. There are persistent and significant gaps in digital infrastructure between countries in the region, as well as weighty rural-urban gaps within some countries. Bridging these digital divides will be key to inclusive digital transformation. Households with tertiary education are on average more connected (with better quality service and higher expenditures on data) compared to the rest of the population. As education level is correlated with income, digital inequalities mirror and may amplify existing social inequalities – underscoring the critical need to address them. Over two-thirds of connected households in the region are concerned about privacy and security when using the internet. However, households on average across Latin America and the Caribbean still reported increasing their use of the internet amid the pandemic, suggesting that neither issue poses a barrier to their internet use at present.
Opportunities for Reducing Poverty and Inequality in Costa Rica: World Bank Poverty and Inequality Assessment

(Washington, DC: World Bank, 2022-09-01) World Bank

The purpose of this poverty assessment is to shine a new light on poverty, inequality, and its drivers in Costa Rica. The report provides a descriptive overview of poverty trends in the country and examines why the poorest do not reap the benefits of economic growth. It provides high-level policy directions, i.e., areas that merit a high level of attention according to the results of the analysis and broad implications of the findings for policy makers. The report should be interpreted as a contribution to the debate within Costa Rica on how to improve the country’s model of growth for the benefit of all. It is important to mention at the outset that the analysis presented in this report was completed at the time the conflict in Ukraine started. The conflict is expected to have substantial repercussions in Costa Rica and the rest of the Latin America region. The conflict is expected to hit the poorest hardest, as food and fuel – the prices of which are expected to increase due to the conflict – make up a large part of their consumption. However, these possible implications of the conflict are not reflected in the report.
Deep Trade Agreements: Anchoring Global Value Chains in Latin America and the Caribbean

(Washington, DC : World Bank, 2022-07-12) Rocha, Nadia ; Ruta, Michele

International economic integration offers unexploited opportunities to Latin America and the Caribbean. This report studies how the region’s countries can leverage trade agreements to promote their economies’ participation in global value chains (GVCs).The gaps between potential and actual GVC integration follow from the region’s Economic fundamentals, such as geography, market size, institutions, and factor endowments. But policy choices matter as well. The report, based on new data and evidence, shows that trade agreements can drive policy reforms and help the region overcome some of its disadvantageous fundamentals. The report makes specific policy recommendations to guide Latin American and Caribbean countries in leveraging trade agreements to pursue greater international integration and economic growth. Four main findings emerge from the analysis: (i) Latin America and the Caribbean’s poor international integration and limited participation in GVCs have contributed to its low economic growth over the past decade; (ii) Although the region’s countries increasingly participate in preferential trade agreements (PTAs), there are gaps in the content of these agreements; (iii) Deep trade agreements present an avenue to promote trade and boost GVC integration and upgrading, thus contributing to improved economic performance; (iv) Four areas of deep integration - trade facilitation, regulatory cooperation, services, and state support - are priorities to improve these countries’ GVC participation and upgrading.
Remarks by World Bank Group President David Malpass at World Bank Group 2022 Spring Meetings Ministerial Roundtable for Support to Ukraine

(World Bank, World Bank, 2022-04-21) Malpass, David

These remarks were delivered by World Bank Group President David Malpass at World Bank Group 2022 Spring Meetings Ministerial Roundtable for Support to Ukraine on April 21, 2022. He said that he has been deeply horrified and shocked by Russia’s invasion of Ukraine, the atrocities committed against the civilian population, and the loss of life and livelihoods for millions of Ukrainians. He mentioned that since the invasion, the World Bank Group has provided fast-disbursing financial support to help the government provide critical services, pay wages for hospital workers, public servants, and the elderly. He insisted that It will be important for all partners to continue coordinating their support for Ukraine’s budget needs. He described that the World Bank Group is working toward three phases of the recovery effort of relief, recovery, and resilience. He said that as the war continues, the World Bank Group will work to build confidence in Ukraine’s financial, monetary, and fiscal institutions, fostering currency stability as they go forward. He mentioned that rebuilding will take hard work, determination, and struggle, but he remains optimistic. He concluded by saying that with our collective support, Ukraine can achieve a brighter future.
Digital Economy for Latin America and the Caribbean: Country Diagnostic - El Salvador

(Washington, DC, 2022-04) World Bank

The widespread adoption of digital technologies is transforming how individuals, businesses, and governments interact, as well as creating new opportunities for boosting shared prosperity and reducing poverty. Digital technologies are playing an increasingly important role in El Salvador’s economic development and will play an even larger role as the global economy continues to digitize. Digital transformation can help El Salvador address its persistent growth challenges and explore new avenues toward green, resilient, and inclusive development. This report builds on the strategic priorities of the digital agenda (DA) 2020-2030, assesses the state of digital economy development in El Salvador, and provides detailed analysis and policy recommendations to inform the reform agenda in the country. The report provides a comprehensive overview El Salvador’s digital economy development across six foundational elements of a digital economy: digital infrastructure, digital platforms, digital financial services, digital businesses, digital skills, and trust environment. The diagnostic and recommendations are based on analysis of secondary data, structured interviews, surveys, and focus group discussions with key government and private sector stakeholders. The findings of the report are organized in six chapters - each dealing with a pillar of the digital economy. Policy recommendations are presented in the form of sequenced action plans that can inform relevant efforts by national authorities, the private sector, and development partners. The report summarizes the main findings on each digital economy pillar.
The Learning Crisis in Latin America and the Caribbean and the COVID-19 Pandemic: Sobering Results of a Deepening Trend

(Washington, DC, 2022-04) World Bank

The Latin America and the Caribbean (LAC) region was suffering from a deep learning crisis, before the COVID-19 outbreak, with most students being below minimum proficiency levels for critical foundational competencies in numeracy and literacy, according to the Fourth Regional Comparative and Explanatory Study (ERCE). The pandemic that hit the region in March 2020 led to a massive shutdown of educational systems, placing LAC as the region with the longest duration of school closures in the world. The impact of school closures on education service delivery was significant. The forced move to distance learning negatively impacted attendance in the education process, both when compared to enrollment rates (-10 percent) and with pre-pandemic attendance rates (-12 percent). Most worryingly, one in four students attending the education process during the pandemic confirmed being disengaged from learning activities while at home. The COVID-19 led to a crisis within a crisis, deepening pre-existing inequalities that characterize the LAC region, as the most vulnerable populations were disproportionately affected. A significant increase in drop-out rates and decrease in learning outcomes is expected, especially for these groups and countries which were already not doing well pre-pandemic. There is a sizeable schooling and learning recovery agenda ahead of LAC, where re-enrollment campaigns, standardized and in-classroom assessments, and programs to teach to the right level will be fundamental to determine the exact depth of educational losses and start recovering.