- Figures (and map)
- Shifting Paradigms in Latin America's Economic Development
- Institutions and the Historical Roots of Latin American Divergence
- Political Institutions, Policymaking, and Economic Policy in Latin America
- The Washington Consensus: Assessing A “damaged Brand”
- From Old to New Developmentalism in Latin America
- Environmental Sustainability
- Taming Capital Account Shocks: Managing Booms and Busts
- Exchange Rate Regimes in Latin America
- Monetary Policy in Latin America: Performance Under Crisis and the Challenges of Exuberance
- Domestic Financial Development in Latin America
- Fiscal Policy in Latin America
- Fiscal Legitimacy, Inequalities, and Democratic Consolidation in Latin America
- Latin America in the World Trade System
- Regional Integration
- The Effects of Trade Liberalization on Growth, Employment, and Wages
- The Recent Commodity Price Boom and Latin American Growth: More than New Bottles for an Old Wine?
- Curse or Blessing? Natural Resources and Human Development
- Foreign Direct Investment in Latin America
- China and the Future of Latin American Economic Development
- Latin America in the Recent Wave of International Migration
- Structural Transformation and Economic Growth in Latin America
- Learning, Technological Capabilities, and Structural Dynamics
- Why Has Productivity Growth Stagnated in Most Latin American Countries Since the Neo-Liberal Reforms?
- Agricultural and Rural Development
- An Energy Panorama of Latin America
- Infrastructure in Latin America
- The Rise and Fall of Income Inequality in Latin America
- Multidimensional Poverty in Latin America: Concept, Measurement, and Policy
- Economic Insecurity and Development in Latin America and the Caribbean
- Employment: The Dominance of the Informal Economy
- Latin American Labor Reforms: Evaluating Risk and Security
- Social Protection in Latin America: Achievements and Limitations
- Social Security Reforms in Latin America
Abstract and Keywords
Focusing on current issues, this chapter discusses four topics that distinguish Latin America from other regions, and discusses the most compelling explanations provided in the analytical literature, starting with the broad topic of fiscal state capacity in Latin America. The second topic is the well-documented pro-cyclical nature of fiscal policy in Latin America. This is a critical issue because fiscal policies should allow countries to achieve macroeconomic stability, rather than exacerbating economic fluctuations. The third topic is fiscal decentralization. Despite very low tax-revenue generation at the subnational level, government expenditures are increasingly decentralized in Latin America. The last section deals with sustainability issues. The main point is that very few countries in the region issue sovereign debt internationally rated as investment grade.
Mauricio Cárdenas is Senior Fellow and Director of the Latin America Initiative at the Brookings Institution, Washington, DC.
Guillermo Perry is Research Associate, Fedesarrollo, Bogotá; and Non Resident Fellow, Center For Global Development, Washington, DC.
Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.
If you have purchased a print title that contains an access token, please see the token for information about how to register your code.