Ize, Alain

Office of the Chief Economist for Latin America and the Caribbean, The World Bank
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International finance, Macroeconomics, Monetary policy, Financial sector issues and regulation
Office of the Chief Economist for Latin America and the Caribbean, The World Bank
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Last updated: January 31, 2023
Alain Ize is a senior consultant to the Chief Economist Unit of the Latin America and the Caribbean Region of the World Bank. His research and publications cover issues of international finance and open macroeconomics (including exchange rate, monetary policy and financial dollarization issues), central banking and development banking, financial sector development and regulation, and fiscal policy. Prior to working for the World Bank, he was an Area Chief in the Financial Systems Department of the IMF. He worked previously for the Fiscal Affairs Departments of the IMF (as a senior economist), El Colegio de Mexico (as a professor and Chair of the Economics Department) and Banco de Mexico (as a researcher). He visited the University of California at Davis (1983-84) and Stanford University (1984).
Citations 23 Scopus

Publication Search Results

Now showing 1 - 2 of 2
  • Publication
    Latin America’s Growth: Looking through the Demand Glass
    (World Bank, Washington, DC, 2022-11) de la Torre, Augusto; Ize, Alain
    This paper revisits the historical roots of Latin America’s disappointing growth using a novel macro and trade-based growth decomposition and a simple model of industrialization in a commodities-exporting country with a large informal sector. The approach suggests the need to better qualify two opposite narratives: that the post-1982 (“neoliberal”) reforms have failed, and it is time to look back to the import substitution industrialization era for policy inspiration; and that the post-1982 reforms went in the right direction but must be completed to unleash significant productivity gains. Both can be misleading because they downplay the role of demand. The apparent “miracle” of import substitution industrialization does not provide a realistic point of comparison because it reflected an unsustainable, demand-induced boost in productivity. And the gains expected from Washington Consensus-style reforms alone can be overstated because they are derived from overly restrictive assumptions on demand. By allowing demand to play a more central role, the paper finds a close and revealing relationship between the growth patterns followed by Latin American countries, the quality of their macroeconomic policies, the nature of their trade, and the segmentation of their labor markets. Going forward, the policy agenda calls for an outwardly oriented growth strategy, supported by a more proactive role for the state that promotes not only efficiency in supply, but also the appeal to demand.
  • Publication
    Financial Development in Latin America and the Caribbean : The Road Ahead
    (World Bank, 2012) de la Torre, Augusto; Ize, Alain; Schmukler, Sergio L.
    The financial systems of the Latin America and the Caribbean region (LAC) are at a crucial juncture. After a history of recurrent instability and crisis (a trademark of the region), they now seem well poised for rapid expansion. Since the last wave of financial crises that swept through the region in the late 1990s and early 2000s, financial systems in LAC have continued to gain in soundness, depth, and diversity. The size of banking systems has increased, albeit from a low base; local currency bond markets have greatly developed, both in volumes and in reach over the yield curve; stock markets have expanded; and derivative markets particularly currency derivatives have grown and multiplied. Institutional investors have become more important relative to banks, making the financial system more complex and diversified. Importantly, much progress has been made in financial inclusion, particularly through the expansion of payments, savings, and credit services to lower income households and microenterprises. As evidence of their new soundness and resiliency, financial systems in the region, except in some Caribbean countries, weathered the recent global financial crisis remarkably well. The progress in financial development in LAC no doubt reflects substantial improvements in the enabling environment, lower macroeconomic volatility, more independent and better-anchored currencies, increased financial liberalization, lower currency mismatches and foreign debt exposures, enhanced effectiveness of regulation and supervision, and notable improvements in the underlying market infrastructures (for example, trading, payments, custody, clearing, and settlement). This regional flagship report aims at providing such a stocktaking and forward looking assessment of the region's financial development. Rather than going into detail about sector-specific issues, the report focuses on the main architectural issues, overall perspectives, and interconnections. The value added of the report thus hinges on its holistic view of the development process, its broad coverage of the financial services industry (not just banking), its emphasis on benchmarking, its systemic perspective, and its explicit effort to incorporate the lessons from the recent global financial crisis.