Sinnott, EmilyNash, Johnde la Torre, Augusto2012-03-192012-03-192011978-0-8213-8482-4https://hdl.handle.net/10986/2482Throughout, the history of the Latin America and Caribbean (LAC) region, natural resource wealth has been critical for its economies. Production of precious metals, sugar, rubber, grains, coffee, copper, and oil have at various periods of history made countries in Latin America-and their colonial powers-some of the most prosperous in the world. In some ways, these commodities may have changed the course of history in the world at large. Latin America produced around 80 percent of the world's silver in the 16th through 19th centuries, fueling the monetary systems of not only Europe, but China and India as well. The dramatic movements in commodity markets since the early 2000s, as well as the recent economic crisis, provide new data to analyze and also underscore the importance of a better understanding of issues related to boom-bust commodity cycles. The current pattern of global recovery has favored LAC so far. Countercyclical policies have supported domestic demand in the larger LAC economies, and external demand from fast-growing emerging markets has boosted exports and terms of trade for LAC's net commodity exporters. Prospects for LAC in the short term look good. Beyond the cyclical rebound, however, the region's major longer-run challenge going forward will be to craft a bold productivity agenda. With LAC coming out of this crisis relatively well positioned, this may well be possible, especially considering that the region's improved macro-financial resiliency gives greater assurance that future gains from growth will not be wiped out by financial crises. In addition, LAC has been making significant strides in the equity agenda and this could help mobilize consensus in favor of a long overdue growth-oriented reform agenda. But it remains to be seen whether the region will be able to seize the opportunity to boost long-run growth, especially considering the large gaps that LAC would need to close in such key areas as saving, human capital accumulation, physical infrastructure, and the ability to adopt and adapt new technologies.CC BY 3.0 IGOADVANCED ECONOMIESADVERSE EFFECTSAGRICULTURAL COMMODITIESAGRICULTURAL COMMODITYAGRICULTURAL PRODUCTIONAGRICULTUREBENCHMARKINGBUSINESS ENVIRONMENTBUSINESS ENVIRONMENTSCAPITAL ACCOUNTSCAPITAL ACCUMULATIONCAPITAL FORMATIONCAPITAL MARKETSCAPITAL STOCKCARBONCASH FLOWSCOMMODITIESCOMMODITYCOMMODITY BOOMCOMMODITY BOOMSCOMMODITY EXPORTCOMMODITY EXPORTSCOMMODITY IMPORTSCOMMODITY MARKETSCOMMODITY PRICECOMMODITY PRICE INDEXCOMMODITY PRICE INDEXESCOMMODITY PRICE INDICESCOMMODITY PRICESCOMMODITY PRODUCERSCOMMODITY PRODUCTIONCOMMODITY SECTORSCOMMODITY TRADECOMMON PROPERTYCOMPARATIVE ADVANTAGECOMPETITIVENESSCONCENTRATION INDEXESCONSUMER PRICE INDEXCONSUMERSCOPYRIGHTCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCPIDEPOSITSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING ECONOMIESDIRECT CONNECTIONSE-MAILECONOMETRIC ANALYSESECONOMETRIC ANALYSISECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CRISISECONOMIC DEVELOPMENTECONOMIC EFFECTSECONOMIC GROWTHECONOMIC HISTORYECONOMIC RENTSECONOMIC RESEARCHECONOMIC SIZEECONOMIC STRUCTURESECONOMIC WELFAREECONOMICSECONOMICS LITERATUREECONOMISTSELASTICITYELECTRICITYEMERGING ECONOMIESEMERGING MARKETSEMPIRICAL EVIDENCEEMPIRICAL INVESTIGATIONSEMPIRICAL STUDIESENVIRONMENTALENVIRONMENTSEQUILIBRIUMEXCHANGE RATEEXPLOITATIONEXPORT PROCESSING ZONESEXTERNAL COSTSFACTORS OF PRODUCTIONFEDERAL RESERVEFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL RISKFISHFISHERIESFIXED COSTSFORECASTSFOREIGN EXCHANGEFOREIGN INVESTORSFOREIGN TRADEFORESTRYFUTURE PRICEGDPGDP PER CAPITAGEOGRAPHICAL AREAGLOBAL EXPORTSGLOBAL MARKETSGOVERNMENT EXPENDITURESGOVERNMENT OWNERSHIPGOVERNMENT REVENUESGROSS DOMESTIC PRODUCTGROWTH PATHGROWTH POTENTIALGROWTH RATEGROWTH STRATEGIESHISTORY OF ECONOMIC THOUGHTHUMAN CAPITALIDIMAGEINCENTIVE STRUCTUREINCOMESINDUSTRIAL REVOLUTIONINDUSTRIALIZATIONINFORMATION TECHNOLOGYINFRAREDINNOVATION POLICIESINSPECTIONINSTITUTIONINSTITUTIONAL ENVIRONMENTINTEGRATED PROGRAM FOR COMMODITIESINTERNATIONAL CAPITALINTERNATIONAL CAPITAL FLOWSINTERNATIONAL TRADELEGAL ENVIRONMENTLICENSESMACROECONOMIC MANAGEMENTMACROECONOMIC STABILITYMANUFACTURINGMARGINAL COSTMARGINAL COST OF PRODUCTIONMARKET SHAREMATERIALMETALSMINESMONETARY POLICYNATIONAL INCOMENATURAL CAPITALNATURAL RESOURCENATURAL RESOURCE ECONOMICSNATURAL RESOURCESNEGATIVE EXTERNALITIESNEW TECHNOLOGIESNONTRADABLEOILOIL PRICESOPECOUTPUTPERVERSE SUBSIDIESPHOTOPHYSICAL INFRASTRUCTUREPOLICY MAKERSPORTFOLIOPRICE CONTROLSPRICE FLUCTUATIONSPRICE INDEXESPRICE INSTABILITYPRICE MOVEMENTSPRICE RISKPRICE SERIESPRICE VOLATILITYPRICEDPRIMARY COMMODITIESPRIMARY COMMODITYPRIVATE INVESTMENTPRIVATIZATIONPRODUCERSPRODUCT CATEGORIESPRODUCT MARKETSPRODUCTION PROCESSPRODUCTION STRUCTUREPRODUCTIVITYPRODUCTIVITY GROWTHPROVEN RESERVESPUBLIC EXPENDITURESPUBLIC GOODPUBLIC POLICYQUERIESRANDOM WALKRENT SEEKINGRESOURCE MANAGEMENTRESOURCE OWNERSHIPRESULTRESULTSRISK AVERSERISK AVERSIONRISK MANAGEMENTSAVINGSSKILLED WORKERSKILLED WORKERSSMALL ECONOMYSUNK COSTSSUSTAINABLE DEVELOPMENTSUSTAINABLE GROWTHTAXTAX RATESTECHNOLOGICAL ADVANCESTECHNOLOGICAL INNOVATIONTECHNOLOGICAL INNOVATIONSTELEPHONETERMS OF TRADETIMBERTIME PERIODSTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRAGEDY OF THE COMMONSTRANSPARENCYTRANSPARENCY INITIATIVETRUSTSUSESVALUE CHAINWAGESWEALTHWORLD DEVELOPMENT INDICATORSWORLD MARKETSWorld Bank10.1596/978-0-8213-8482-4