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date: 08 December 2019

(p. 887) Index

(p. 887) Index

account surpluses, management 120
Acemoglu, D. and Robinson, J.
on colonial heritage 36
on institutions 33
Acemoglu, D., Johnson, S., and Robinson, J., on Botswana, resource-based growth 422
Adaptability Index (AI) 559
adaptability of policies 58, 60–1
Adaptation Fund 151
adjusted savings rates 143–4
adjustment policies, effect on income inequality 697
aggregate demand
impact of external shocks 175
regulation of expansion 177–8
relationship to GDP 175–6
aggregate demand management 119–20
aggregate employment, effect of trade liberalization 378–9
aggregation level, business groups 71–2
Aghion, P. and Howitt, P., model of growth 524
Agosin, M., on Chilean RER volatility 202
agrarian reform 8, 615, 632
agricultural added value
average annual rate of growth 627
share in total GDP 628
agricultural commodities, price rises 631–2
agricultural development banks 612–13
agricultural employment, effect of trade liberalization 381
agricultural policies 633, 760
land and irrigation 615–16
prices and direct support 611–12
research and technology transfer 613–14
agricultural production, growth 131, 132, 133
agricultural subsidies 336
agriculture 608–9
challenges of free trade agreements 610–11
changes in land cultivation 617–18, 619–20
changes in livestock 621, 622–3
composition of international trade 624–5
credit access 612–13
dependence on imports 612
effects of structural reforms, economic
performance 627–8
heterogeneity 616–17
productivity gaps with US 594
state intervention 7
agro-industrial complexes 608
air pollution 141–2
PM10 emissions, selected cities 141
Aizenman, J.
on financial crises 257
on financial opening 247
Ajegroup 455
ALBANISA 645
Alkire, S. and Foster, J., poverty measures 724
Alkire, S. and Santos, M.E., multidimensional poverty index 732–3, 735
Amarante V, Arim, R., and Vigorito, A., child poverty, 736
AmBev 455
American Institutionalist School 122
Andean Community
challenges 362
intra-industry trade 357
Andean Pact 323, 327, 346–7
institutional structure 353
Anderson, K. and Valdés, A., on RRA 627
Andrés, L. et al., evaluation of infrastructure PPI 683–4
(p. 888) apparel industry, efficiency-seeking FDI 451
appreciation bias, FIT arrangements 201–2
aquaculture, environmental consequences 142
Aragón, F. and Rud, J., on Peru 421
budget balance, 1990s 86
CCT program 736
civil service capacity 69
“convertibility” regime 58, 195–6, 197
crawling peg regimes 189, 190, 191
crisis 2001–2, 197–8
decentralization 282, 284
dollarization 225
domestic production, competition from China 484
economic growth
1997–2007 521
in crisis periods 217
state-led industrialization period 10
economic liberalization 163
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
exchange rates, crisis periods 219, 220
export shares by main destination, 2000 and 2007 332
exports 395
to China 464, 465
to Latin America 481
factors in economic success 45
FDI
hydrocarbon sector 647
inward 442
outward 453
public services 447
fiscal policy 228–9
food security program 633
government expenditure 272
heterodox stabilization program 194
Human Development Index 727
hydrocarbon sector reforms 643
imports and exports, trends 370
income inequality 700–3, 701
indexation to the dollar 224
inflation rates 14, 216
1980s 194
1990s 85
infrastructure
investment as percentage of GDP 677
trends 663
interest rates, crisis periods 218
intraregional immigration 494, 496
judicial independence 68
labor laws, enforcement 806
labor market 13–14
reforms 786, 794, 795, 796, 800, 802
legislature capabilities 66
manufactured exports, threat from China 479, 480, 482
migration to USA and Spain 499
natural gas reserves 640
natural resource use 420
natural resources 400–2, 408
oil production, economic importance 640
oil reserves 639
party system institutionalization (PSI) 71
per capita GDP
1820–2003 32
1950 and 1980 13
per capita income, growth 1950–2006, 112
personal income taxes 268
Policy Index 62
political regime 54
poverty levels 717, 731–2
evolution by dimension 734
multidimensional poverty index 735
productivity growth 578, 581
public balance as a percentage of GDP 280
public debt 287
1990s 86
public investment 584
public policies 61
real exchange rates 1980–2008, 207
SCRER strategy 202–3, 205
volatility 201
redistribution of income 306
relative growth performance 1990–2008, 21
RP and KI indices 558
(p. 889) size of financial system 245
social expenditure 273, 844
trends 845
social security coverage 780, 874
social security reforms 879, 881
stock market turnover ratios 254
tariff rates, trends 321, 369
tax revenue
from natural resources 144
as a percentage of GDP 269
wage gaps 385
weighted average growth rates 11
workfare programs 848–9
Argentine-Brazil accord, 1986 324
Arida, P. and Lara-Resende, A., Larida proposal 196
Aschauer, D., on public infrastructure capital 670
Asian countries
free trade agreements 331–2, 333
reforms 569
Asian crisis 197, 198
Australia
resource-based growth 421–2
RP and KI indices 558
TFP growth 581
authoritarianism, relationship to resource abundance 417
automobile industry
Mexico, efficiency-seeking FDI 450–1
automobile use 140
backlash phenomenon 569–70
Baker, A., on popularity of free trade 372, 373
balance of payments, effect of trade liberalization 322
Bangladesh, labor market flexibility 591
bank-based financial systems 250
banking crises, as source of public debt 287
banking systems
regulatory changes 246–8
size 244–6
small size 252–3
banks
effect on liquidity 254
market making function 261
Barbosa-Filho, N., on Brazilian RER appreciation 202
Barros, R., Cardoso, E., and Urani, A., on Brazilian income inequality 703
Barros, R., De Carvalho, M., and Franco, S., Index of Family Development 730
Barros, R. et al., on Brazilian income inequality 705
Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, signatories 154–5
Basel II 172
basic needs 719
Battiston, D. et al, multidimensional measurement of poverty 731, 733
Battle of Seattle 337
Bavaria (beverage company) 455
Beck, U., on labor risk 490
Behrman, J., Birdsall, N., and Székely, M. 387
study of Consensus-style reforms 94
on wage gaps 387
Behrman, J. et al., on wage differentials 698
Belize
conservation efforts 139
poverty levels, multidimensional poverty
index 735
Belsley, D., Kuh, E., and Welsch, R., DFBETA measure 423
benefit provision 877
Bentham, J., on “utility” 725
Beveridge model of social security 864, 865
Beyond the Washington Consensus: Institutions Matter, World Bank 1998, 101
Bielschowsky, R., on mass consumption 114
bilateral trade agreements 328, 346, 610
Bimbo 455
bindings, agricultural subsidies 336
biodiversity 137–8
Cartagena Protocol 155–6
causes of loss 138
United Nations Convention on Biological
Diversity 154–5
biofuels 652–4, 656
(p. 890) Birdsall, N. et al., on Washington Consensus 103–4
Bismarckian social security systems 864–5
“blue box” 336
Bolivarian Alternative for the People of the Americas (ALBA) 363, 364
Bolivia
adjusted savings rate 143
civil service capacity 68, 69
decentralization 282
economic growth 1997–2007, 521
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
energy consumption 137
export shares by main destination, 2000 and 2007 332
FDI
hydrocarbon sector 647, 648
inward 442
Human Development Index 727
hydrocarbon sector reforms 642
imports and exports, trends 370
judicial independence 68
labor laws, enforcement 806
labor market reforms 795, 800
legislature capabilities 66
migration to USA and Spain 499
natural gas reserves 640
oil production, economic importance 640
party system institutionalization (PSI) 71
pension coverage 787
per capita income, growth 1950–2006, 112
Policy Index 62
poverty levels 717
multidimensional poverty index 735
public policies 61
relative growth performance 1990–2008, 21
social expenditure 273, 844
trends 845
social pensions 850
social security coverage 873
social security reforms 878–9
tariff rates, trends 321, 369
tax revenue
from natural resources 144
as a percentage of GDP 269
wage gaps 385
weighted average growth rates 11
workfare program 849
bond markets 248
boom management 175, 183
pro-cyclic behavior 278
Borio, C. and Packer, F., on debt intolerance 226
Botswana, resource-based growth 422
Bourbon reforms 39, 46
Bourguignon, F. and Chakravarty, S.R., poverty measures 724
Brady bonds 169
Brady Plan 84, 195, 242
Brahmbhatt, M. and Canuto, O., on commodity price boom 399
Bravo-Ortega, C. and de Gregorio, J., on growth of disparities 420
Brazil
agrarian reform 615
budget balance, 1990s 86
civil service capacity 68, 69
conditional cash transfers (CCTs) 851, 852, 853
conservation efforts 138, 139
crawling peg regimes 189, 190
decentralization 282, 283, 284
diesel sulfur content 141
domestic production, competition from China 484
economic growth
1997–2007 521
in crisis periods 217
state-led industrialization period 10, 12–13
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
energy integration promotion 655
energy intensity 136, 137
exchange rates, crisis periods 219
export shares by main destination, 2000 and 2007 332
exports 396
to China 464, 465
to Latin America 481
promotion policies 72, 319
FDI
hydrocarbon sector 647, 648
inward 442
outward 453, 454
FIT regime 199
floatation of Real 197
FX market interventions 199
GDP per capita, comparison with India 572
government spending 272, 308
growth of per capita income 1950–2006, 112
heterodox stabilization program 194
Human Development Index 727
hydrocarbon sector reforms 642, 643
impact of 1973 oil shock 191
imports and exports, trends 370
income inequality 703–6, 704
industrial policy 407
inflation rates 14, 216
1980s 194
1990s 85
inflation targeting 223
infrastructure
investment as percentage of GDP 677
trends 663
interest rates, crisis periods 218
investment rates 582, 583
irrigation policies 615
judicial independence 68
labor laws, enforcement 806
labor market 13
reforms 794, 796, 800, 802
legislature capabilities 66
manufactured exports, threat from China 479, 480, 482
manufacturing decline 600
manufacturing FDI 449
meat and poultry production, global expansion 455
migration to USA and Spain 499
minimum price-setting 612
multiple equilibria 232
natural gas reserves 640
natural resource use 421
natural resources 406–7, 408
oil production, economic importance 640
oil reserves 407, 638, 639
party system institutionalization (PSI) 71
pension coverage 787
per capita GDP 1820–2003, 32
personal income taxes 268
Plan Real 229–30
Policy Index 62
political regime referendum 54
poverty levels 717, 731–2
evolution by dimension 734
multidimensional measurement 733
multidimensional poverty index 735
privatization of electricity generation 448
productivity, comparison with Korea 577
productivity gaps with US 594
productivity growth 577, 578
public balance as a percentage of GDP 280
public debt 1990s, 86
public investment 584
public policies 61
real exchange rates 1980–2008, 208
volatility 201, 202
Real Plan 196
redistribution of income 306
relationship between investment and productivity growth 585
relative growth performance 1990–2008, 21
reserve accumulation 200
RP and K I indices 558
size of financial system 245
social assistance 854–5
social expenditure 273, 844
trends 845
social security coverage 874
pensions 850
social security reforms 880
stock market turnover ratios 254
(p. 892) tariff rates, trends 321, 369
tax policy 271
tax revenue
from natural resources 144
as a percentage of GDP 269
taxation of portfolio inflows 167
TFP growth 581
under-5 mortality 141
wage gaps 385, 386
weighted average growth rates 11
“Brazilian miracle” 205–6
Brenner, R., on capitalist development 37
Bretton Woods rules 188
bubbles, regulatory measures 236
budget balances 1990s, 86
budget deficits, comparison with OECD countries 2967, 298
bureaucracies 68
bureaucratic authoritarian governments 52
business groups, role in policy cooperation 71–2
Cairns Group of Fair Traders 335–6
Calderón, C. and Schmidt-Hebbel, K., exchange rate regime classifications 220
Calderón, C. and Servén, L., on contribution of infrastructure to growth 672
Calvo, G, multiple equilibrium approach 232
Calvo, G. and Reinhart, C., on fear of floating 199
Calvo, G., Izquierdo, A., and Mejía, L., on banking crises 247
Canada, FDI 443
Canitrot, A., on exchange rate populism 115
capabilities, specificity to activities 529–30, 533
capability failure approach to poverty 719–20
capital account
case for regulation 163–5
management for development 182–3
capital account liberalization 161, 163, 180–1, 183, 247
crises as a result 161
sequencing 164–5
capital account reforms 181–2
capital account regulations
experience 166–7
objectives 165–6
capital accumulation 33, 44
capital controls 125–6, 181
capital expenditures, comparison with OECD countries 301–2, 302
capital flows
association with crises 256
composition 1977–2008, 170–1
factors influencing dynamics 178–9
impact on fiscal balance 180
impact on public investment 180
links with economic growth 174–80
preconditions for sustained growth 179
volatile nature 180
capital inflows, relationship to real exchange rate 177
capital markets reform implementation 1990–2002, 90
capitalism, peripheral 38–9
Caracazo, Venezuela 404
carbon dioxide emissions 132
Cardoso, C.F.S. and Pérez Brignoli, H., Historia económica de América Latina 37–9, 41–2
Caribbean
export shares by main destination 2000 and 2007, 333
PETROCARIBE 645
proportion of land covered by forest 138
soil degradation 139
under-5 mortality 141
Caribbean Basin Initiative 324
Caribbean Community (CARICOM) 328
total exports 1990–2007, 326
Caribbean Free Trade Area (CARIFTA) 323
Cartagena Agreement 323, 346
Cartagena Protocol on Biosafety to the
Convention on Biological Diversity, signatories 155–6
Caselli, F. and Michaels, G., on Brazil 421
cash transfer programs 699–700, 756, 762–3, 846, 882
Argentina 703
catching-up 549, 563
Asian countries 571
‘one-thing-at-a-time’ processes 594–5
cattle stocks 132
CEMEX, OFDI 454–5
“center” of world economy 4
center-periphery model 16, 39–40, 110, 547–8, 550
Central American Common Market (CACM) 323, 328, 345–6, 363
institutional structure 353
intra-industry trade 357
total esports, 1990–2007 325–6
Central American Free Trade Agreement (CAFTA) 328
central banks
autonomy 230–1
instruments, comparison of new developmentalism and conventional orthodoxy 123, 125–6
mandate, comparison of new developmentalism and conventional orthodoxy 123, 124
role in fiscal policy 228–9
CEPAL (United Nations Economic Commission for Latin America) 6, 345
Changing Production Patterns with Social Equity 18
Cerioli, A. and Zani, S., poverty measurement 725
Céspedes, L.F. and Valdés, R., on central bank autonomy 231
Céspedes, L.F., Chang, R., and Velasco, A., on dollar-denominated assets 224
Chang, R., on FX market interventions 199
Changing Production Patterns with Social Equity, CEPAL 18
Chávez, Hugo 404–5
Chay, K., McEwan, P., and Urquiola, M., on Chilean P-900 program 829
‘Chicago Boys’, Chile 402
child poverty, Uruguay 730–1
childhood interventions 856–7
feeding programs 847–8
Chile
adjusted savings rate 143
budget balance, 1990s 86
CCT program 736
Chicago school offensive 16
childhood interventions 857
civil service capacity 68, 69
Copper Stabilization Fund 279, 280, 411
crawling bands 206
crawling peg regimes 189, 190, 191, 193
decentralization 282
diesel sulfur content 141
dollarization 225 6
economic growth
1997–2007 521
in crisis periods 217
state-led industrialization period 10
economic liberalization 163
education
age-enrollment profiles 815
average years of schooling 822
policy initiatives 829, 831
quantity 820–1
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
electoral volatility 70
energy efficiency 150
exchange rates, crisis periods 219
export policy 72, 395–6
export shares by main destination, 2000 and 2007 332
export trajectory 598
exports
to China 464, 465
to Latin America 481
threat from China 479, 482
FDI
inward 442
outward 453, 454
features of public policies 61
fiscal policy 303
FIT regime 199
free trade agreements 330, 403
with Asian countries 331
(p. 894) FX market interventions 199
GDP growth1990s, 92
government expenditure 272
growth of per capita income 1950–2006, 112
Human Development Index 727
imports and exports, trends 370
inflation rates 14, 216
1980s 193
1990s 85
infrastructure
investment as percentage of GDP 677
trends 663
interest rates, crisis periods 218
irrigation policies 615
judicial independence 68
labor laws, enforcement 806
labor market reforms 794, 795, 797, 800, 802
legislature capabilities 66
liquidity 254
macroeconomic policy 1990s, 196–7
migration to USA and Spain 499
monetary policy 232
natural resource use 421
natural resources 402–3, 408
over-optimism 235
party system institutionalization (PSI) 71
pension reforms 88
per capita GDP
1820–2003 32
1950 and 1980 13
Policy Index 62
poverty levels 717, 731–2
evolution by dimension 734
multidimensional measurement 73
poverty reduction 1990–3,
productivity gaps with US 594, 595
productivity growth 577–8, 581
public balance as a percentage of GDP 280
public debt 1990s, 86
public investment 584
real exchange rates 1980–2008, 208
volatility 201, 202
redistribution of income 306
relationship between investment and productivity growth 585
relative growth performance 1990–2008, 21
reserve accumulation 200
RP and KI indices 558
shift to export-led model 118
size of financial system 245
social expenditure 273, 844
trends 845
social protection 787
social security coverage 780, 874
social security reforms 879, 881
sterilized interventions 206–7
stock market turnover ratios 254
Structural Surplus Rule (SSR) 280–1
subcontracting law 786
tariff rates, trends 321, 369
tax revenue
from natural resources 144
as a percentage of GDP 269
wage gaps 385, 387
weighted average growth rates 11
China
competition with LAC 469, 485
economic growth predictions 467, 468
as export destination 332–3
impact on commodity price boom 484–5
impact on LAC exports 462–3
direct effects 463–5
indirect effects 465–7
increasing share in world trade 337, 339
LAC exports
1985–2008 463
by sector and country 464, 465
LAC manufacturing imports, characteristics and dynamism 483
manufactured exports
competition in regional LAC and home markets 480–4
competition in world markets 475
competitiveness with LAC 471–5
growth 469–71, 470
productivity growth 578
TFP growth 581
threat analysis 475, 479–80
Christiano, L.J. et al. 232–3
Cifuentes, L. et al., on particulate exposure 142
(p. 895) Cimoli, M., Dosi, G., and Stiglitz, J., on international comparative advantages 598
CITES (Convention on the International Trade in Endangered Species), signatories 153–4
civil rights 33
civil service capacity 64, 67–8, 69
clearing and settlement process reform implementation 1990–2002, 90
clientelist linkages, political parties 70
climate change 148–52, 153, 657
adaptation costs 151–2
contribution of Latin America and Caribbean 150, 151
estimated costs 149–50
impact on ecosystems 149
increasing frequency of hydrometeorological events 149
mitigation opportunities 150
United Nations Framework Convention 154–5
Closing the Gap in Education and Technology, World Bank 2003, 102
CMS (Convention on the Conservation of Migratory Species), signatories 153–4
CNOOC (China National Oil Off shore Corporation) 648
CNPC (China National Petroleum Corporation) 648
coalitions 337–8
coastal ecosystem degradation 142
Coatsworth, J
on end of nineteenth century 43
on inequality 44
on institutional modernization 42
on missed opportunities 40–1
coffee production, Brazil 406
coherence of policies 58
collective action clauses 172
Collier, P. and Goderis, B., on natural resource curse 399
Collier, P. and Gunning, J., on natural resource curse 418
Colombia
agrarian reform 615
budget balance, 1990s 86
CCT program 736
childhood interventions 857
civil service capacity 69
conservation efforts 139
crawling peg regimes 189, 190
decentralization 282
dollarization 225
economic growth
1997–2007 521
in crisis periods 217
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by eff ectiveness gap 824
reading proficiency 827
urban enrollment 817
exchange rates, crisis periods 219
export shares by main destination, 2000 and 2007 332
exports, threat from China 479, 480, 482
exports to Latin America 481
FDI
hydrocarbon sector 647
inward 442
outward 453
features of public policies 61
FIT regime 199
food security programs 633
GDP growth rates, 1980s 193
government expenditure 272
growth of per capita income 1950–2006, 112
Human Development Index 727
hydrocarbon sector reforms 642, 643
imports and exports, trends 370
inflation rates
1980s 193
1990s 85
inflation targeting 223
infrastructure
investment as percentage of GDP 677
trends 663
interest rates, crisis periods 218
intraregional migration 494, 496
judicial independence 68
labor laws, enforcement 806
(p. 896) labor market reforms 794, 795, 797, 800, 802
legislature capabilities 66
macroeconomic policy, 1990s 196–7
migration to USA and Spain 499
natural gas reserves 640
oil production, economic importance 640
oil reserves 639
party system institutionalization (PSI) 71
per capita GDP 1820–2003, 32
personal income taxes 268
Policy Index 62
poverty levels 717
multidimensional poverty index 735
productivity gaps with US 594
public balance as a percentage of GDP 280
public debt 1990s, 86
public investment 584
real exchange rates 1990–2008, 209
volatility 201, 202
redistribution of income 306
relative growth performance 1990–2008, 21
reserve accumulation 200
sector composition of employment 380
size of financial system 245
social expenditure 273, 844
social security reforms 879
stabilization funds 279–80
stock market turnover ratios 254
tariff rates, trends 321, 369
tax policy 270–1
tax revenue
from natural resources 144
as a percentage of GDP 269
TFP growth 581
trade liberalization, effect on wage levels 383
wage gaps 385
weighted average growth rates 11
workfare program 849
colonial heritage 32, 39
Marxist and structuralist approaches 36–8
neo-institutional approaches 34–6, 45–6
commodities
exports to China 462–3, 464–7
productivity gaps with US 594
top exports 466
commodity boom 394–5, 552
Brazil as beneficiary 406
China's impact 461–3, 484–5
direct effects 463–5
indirect effects 465–7
future predictions 467–8
trade policies 408
commodity lottery 31
commodity power 337
commodity subsidies 840
Common Agricultural Policy (CAP) 335
common external tariffs (CETs) 346, 347, 363
old and new regionalism 351, 352
community-driven development (CDD) projects 841
compensatory fiscal policy, Chile 403
competition, in education 830
competitiveness, exchange rates 181
Competitiveness, IDB 1997, 102–3
Competitiveness and Growth, Andean Development Corporation (CAF) 102–3
complexity of organizations 541–3
components of colonial societies 37
COMTRADE (Commodity Trade Statistics Database) 462
CONAB (Compania Nacional de
Abastecimiento) 612
Concertacion, Chile 402–3
concessions, infrastructure industries 681–2
renegotiation 682–3
Conconi, A. and Ham, A., on poverty in Argentina 731
conditional cash transfers (CCTs) 699–700, 716, 736, 756, 762–3, 842, 851
as an educational intervention 826
effects 852–4
poverty reduction 853, 856–7
Mexico 708, 709–10
Congress, re-election rates 65
Congress Capability Indices 66
congressional policymaking capabilities 64–5
competitive liberalization 361
Consensus-style reforms
implementation 83–9
outcomes 89–90
conclusion 95
(p. 897) counterfactual overview 93–4
factual overview 91–3 see also Washington Consensus
conservation efforts 138–9
contributory social security systems 881
lack of universal coverage 865, 867–8
link between entitlements and contributions 877–8
Convention Concerning the Protection of the World Cultural and Natural Heritage, signatories 153–4
conventional orthodoxy
comparison with new
developmentalism 120–6
defining propositions 112–13
failure 111–12
convergence 31, 45
“convertibility” regime, Argentina 58, 195–6, 197
coordination failures 527
coordination of policies 58, 261–2
copper production, Chile 402, 403, 421, 598
Copper Stabilization Fund, Chile 411
coral reef loss 142
Corden, W.M., on Dutch Disease 414
corporate bonds/GDP ratio 251
Costa Rica
adjusted savings rate 143–4
civil service capacity 68, 69
decentralization 282
economic growth 1997–2007 521
state-led industrialization period 10
education
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by eff ectiveness gap 824
urban enrollment 817
export shares by main destination, 2000
and 2007 332
exports
to Latin America 481
threat from China 479, 480
FDI, inward 442
features of public policies 61
government expenditure 272
growth of per capita income 1950–2006, 112
Human Development Index 727
hydrocarbon sector reforms 644
imports and exports, trends 370
Intel 451–2
judicial independence 68
labor laws, enforcement 806
legislature capabilities 66
migration to USA and Spain 499
party system institutionalization (PSI) 71
Policy Index 62
poverty levels 717
relative growth performance 1990–2008, 21
size of financial system 245
social expenditure 273, 844
trends 845
social security coverage 874
social security reforms 879–80
tariff rates, trends 321, 369
tax revenue as a percentage of GDP 269
TFP growth 581
unsatisfied basic needs (UBN) 729–30
wage gaps 385
weighted average growth rates 11
countercyclical regulation 162, 165, 178–80, 260, 759–60
country risk, relationship to stock exchange prices 169
covariant risks 742, 743
crawling bands 193, 197
Chile 206
crawling peg regimes 7, 14, 203–4
1960s 189–90
1960s–1970s 206
1970s 191–2
1980s 193, 194
credentialism 702
credibility, in management of crises 237
credit, agricultural 612–13
credit access 762
credit rating 287
credit/GDP ratios 248, 249
creditors
dangers of 120
over-optimism 178
creeping threat, as driver of regional integration 365–6
(p. 898) crises 237–8, 242, 698
causes and effects 256–7
as driver of change 259
duration, relationship to product space density 534
effect on employment 770–1
emerging economies 178
IMF lending 281
link to booms 175, 183
macroeconomic performance 215–16
mistaken hypotheses 183
monetary policy and exchange rate response 217–20
relationship to financial development 243–4
role of banking regulations 247
role of pro-cyclical fiscal policies 278
unequalizing effects 692, 697, 699, 700–1
cross-section regressions 588, 589
Cuba
growth of per capita income 1981–2006, 112
hydrocarbon sector reforms 644
migration to USA and Spain 499
social expenditure 844
Cukierman, A., on central bankautonomy 230–1
CUPET 644
currency mismatches, control 165
current account deficits 168
custody arrangements 1990–2002, 90
customs unions 334
cyclical components of net capital inflows and real GDP, country correlations 279
cyclical conditions, discretionary fiscal policy response 275, 276
cyclicality of capital flows 165
De Gregorio, J., 216
De Gregorio, J., Tokman, A., and Valdés, R., on FX market interventions 199
De Soto, H., Ghersi, E., and Ghibellini, M., on informal sector 774
de-dollarization 225–6
de-industrialization 601, 602 see also Dutch disease
debt crisis 53, 80, 161, 553–4
1980s 15–16
responses 193–5
Mexico 706 see also crises
debt cycle, virtuous 179
debt defaults, after decentralization 284
debt intolerance 226–7
debt profile improvement 165–6
debt reduction agreements 84
debts, public debt 1990s, 86
decentralization 281–2, 289, 774, 785
accountability and efficiency 284
bankruptcies and debt defaults 284
effect on service delivery 282, 284
revisions 285
shortcomings 285
of taxation 282–3
transfers to subnational governments 283–4
Deepthi, F., on financial development 251
deforestation 131, 138
delegation of policy 63
delegative democracies 64
democracies 294
association with decentralization 281
instability 51, 52, 54
regional integration 343
relationship to fiscal policy 303–6
democratic legitimacy, improvement 310–12
democratization 56
demographic dependency ratio 868–9, 870
demographic transition 500, 768–9
impact on social security systems 882–3
demographic window of opportunity 520
dependency school 39, 52
depletion effect, natural resources 415
deregulation 259, 554
Washington Consensus 81, 82
derivatives, as source of instability 173
derivatives markets 248
growth 168
desertification 138
devaluation
1950s-1960s 189–90
gradual 7, 14
development banks 247
development economics 523–4
development performance, state-led industrialization period 9–14
(p. 899) development policies 538–9
government problems, eliciting information 539–41
development process
changes in export composition 525
diversification 524
development stage, differences between countries 109
development strategies 7–8
developmentalism national 108, 110, 111
new 113–16
comparison with conventional orthodoxy 120–6
comparison with national developmentalism 116–20, 119
conclusion 126
DFBETA measure 423
Di John, J., on Venezuela 420
Diana, G. and Sidiropoulos, M., on central bank autonomy 231
Déaz, Porfirio 417
Diaz-Alejandro, C.,
on Crises 161
on financial reforms 182
on liberalization 242
diesel
price 146–7
sulfur content 141–2
diffusion 552–3, 562
catching-up 549
directed credit 7
discretionary fiscal policy response 275, 276
discriminant analysis, in measurement of poverty 723
dispute settlement, old and new regionalism 351, 353
distance between products 529–30
distortions 599
diversification 398
association with development 524
benefits 747–8
private capital flows 167–72
diversity 31, 42
Doha Declaration of Public Health 338
dollar-denominated liabilities 224
dollarization 221, 222, 236
Ecuador and El Salvador 198
effect on liquidity provision 256
partial 223–6
Peru 200
domestic competition index (DCI) 481
domestic forces, study of 39–40
domestic investment ratio 168
domestic production, competition from China 484
domestic savings 87
1970–2008 89
domestic services, informal employment 778, 779
Dominican Republic
CCT program 736
central bank dominance of fiscal policy 228
civil service capacity 69
economic growth 1997–2007, 521
FDI, inward 442
financial crisis 242, 246
Human Development Index 727
hydrocarbon sector reforms 645
imports and exports, trends 370
judicial independence 68
labor laws, enforcement 806
labor market reforms 794
legislature capabilities 66
migration to USA and Spain 499
party system institutionalization (PSI) 71
Policy Index 62
poverty levels, multidimensional poverty index 735
public policies 61
relative growth performance 1990–2008, 21
size of financial system 245
social expenditure 844
trends 845
social security coverage 874
social security reforms 879
tariff rates, trends 321, 369
tax revenue
from natural resources 144
as a percentage of GDP 269
TFP growth 581
wage gaps 385
weighted average growth rates 11
(p. 900) Donghi, H., ‘great delay’ 39
DR-CAFTA 328, 363
drinking water supplies 142, 146
drought, increasing frequency 149
dual divergence 112
dual economies 114
Duryea, S. and Székely, M., on quantity of education 814
Dutch disease (deindustrialization) 114, 116, 395, 399–400, 414, 601, 602
and Brazil 406
neutralization 117, 118, 125, 418
dynamic exports 559
dysfunctions 252, 263
relationship to financial structure 262
relationships to structural features 259–60, 262
Earth Summit (Rio 1992–145)
East Asian crisis 161, 162
Easterly, W., Loayza, N., and Montiel, P., on trade liberalization 375
ECLAC (Economic Commission for Latin America and Caribbean) 110, 345
Equity, Development, and Citizenship 104
Productive Transformation with Equity 104
Structural Change and Productivity Growth 102
econometric studies, Consensus-style reforms 93–4
Economic Complementarity Agreements 346
economic cycles, impact on political systems 52
economic development 546
economic growth 293, 523–4
econometric studies, Consensus-style reforms 93–4
Economic Complementarity Agreements 346
economic cycles, impact on political systems 52
economic development 546
economic growth 293, 523–4
1980s onwards 20–1
1997–2007 521
China, future predictions 467, 468
comparison of new developmentalism and conventional orthodoxy 123
contribution of increased schooling 522
difference from human development 412
effect of ‘bad’ institutions 43
effect of Consensus-style reforms 91–2, 94, 95
effect of crawling pegs 190
effect of financial crisis 216, 217
effect of inequality 44–5
effect of trade liberalization 374, 375, 388
evolutionary approach 548–9
failure of conventional orthodoxy 111–12
growth rates of population and per capita GDP 1500–1820 and 2001, 30
growth strategies 99
international 27, 30–1
Latin American puzzle 523–4
explanations 536–9
link to financial development 241, 243
links with capital flows 174–80
neo-classical interpretations 519–22
per capita GDP
1500–2001 28
1820–2003 32
population and GDP 1500–2001, 29
postwar phases 551–4
pre-state-led industrialization 8–9
primary-product exporters 397–8
relationship to infrastructure 670, 671, 672–4, 684
relationship to learning 550–1, 563–4
relationship to macroeconomic volatility 745
relationship to natural resources 411–12, 425, 426, 427–8
relationship to poverty 751–2
relationship to trade policy 318
relative growth performances 1990–2008, 21
as source of uncertainty 747
state-led industrialization period 9–14
structuralist approach 547–8
unequal distribution 42
economic insecurity 741–2
challenges 742–3
conclusions 763
financial volatility 749–50
labor market vulnerability 752–5
macroeconomic volatility 743–5
poverty reduction strategies 757
labor protection and social policies 760–3
risk mitigation 758–60
poverty risk 751–2
role of trade shocks 747–9
(p. 901) economic integration 23
economic orthodoxy 15
economic slowdown, effect on productivity 573–7
economies of scale 524
ECOPETROL 646, 647, 649
modernization 643
Ecuador
adjusted savings rate 143
adoption of US dollar 198
CCT program 736
civil service capacity 68, 69
conditional cash transfers (CCTs) 852, 853
conservation efforts 138–9
decentralization 282
economic growth 1997–2007 521
state-led industrialization period 10
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by eff ectiveness gap 824
urban enrollment 817
energy intensity 136, 137
export shares by main destination 2000 and 2007, 332
FDI
hydrocarbon sector 647, 648
inward 442
financial crisis 242
government expenditure 272
hydrocarbon sector reforms, Law 42 642
imports and exports, trends 370
judicial independence 68
labor laws, enforcement 806
labor market reforms 794, 795, 800
legislature capabilities 66
migration to USA and Spain 499
oil production, economic importance 640
oil reserves 639
oil stabilization fund 279
party system institutionalization (PSI) 71
per capita income, growth 1950–2006, 112
Policy Index 62
poverty levels 717
multidimensional poverty index 735
public policies 61
relative growth performance 1990–2008, 21
size of financial system 245
social expenditure 273, 844
social security coverage 873
tariff rates, trends 321, 369
tax revenue as a percentage of GDP 269
TFP growth 581
wage gaps 385
weighted average growth rates 11
education 813–14
conclusions 833–4
effect of conditional cash transfers 852
effect of decentralization 284
international expenditure 2006, 102
pre-school enrollment 857
quality 273, 826–8
expenditure inputs 828–30
student effort and school productivity 830–2
quantity
age-enrollment profiles 815–16
average years of schooling 814
policy emphasis 833
prospects for progress 825–6
summary of country-level performance 824–5
urban enrollment 816–18, 817
years in school and years of schooling 819–24
Education Index 12
education spending 307
relationship to performance 308
educational levels
improvement 520, 769
contribution to growth 522
international migrants 506–7
relationship to income inequality 699, 707
wage gaps 384, 385
effectiveness gap, education 823–4
efficiency of policies 58–9, 60–1
efficiency-seeking FDI 450
apparel industry 451
automobile industry in Mexico 450–1
Intel in Costa Rica 451–2
(p. 902) El Salvador
adoption of US dollar 198
civil service capacity 69
decentralization 282
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by eff ectiveness gap 824
urban enrollment 817
electoral volatility 70
emigration 513
export shares by main destination 2000 and 2007, 332
FDI 442
government expenditure 272
Human Development Index 727
imports and exports, trends 370
judicial independence 68
labor laws, enforcement 806
labor market reforms 794
legislature capabilities 66
migration to USA and Spain 499
party system institutionalization (PSI) 71
Policy Index 62
poverty levels 717
evolution by dimension 734
multidimensional measurement 731–2, 733
public policies 61
relative growth performance 1990–2008, 21
size of financial system 245
social expenditure 273, 844
social security coverage 873
tariff rates, trends 321, 369
tax revenue as a percentage of GDP 269
TFP growth 581
unsatisfied basic needs (UBN) 730
wage gaps 385
weighted average growth rates 11
electoral rules 65
electoral volatility 69–70
electric power
access to services 662–3, 668, 669
generation capacity, trends 662–3, 664
investment as percentage of GDP 677
service quality, trends 662–3, 665–7
elites, lack of power 40, 41
EMBRAPA 614
emerging economies (EEs)
crises 178
supply of funds 172
employment 1950–2008 575–6
impact of Chinese imports 484
effect of demographic transition 768–9
effect of economic slowdown 573
impact of globalization 490–1
effect of reforms 769–73
effect of trade liberalization 377–82, 388
instability 752–3, 775
migrants to USA and Spain 508–12, 514
rural, effects of structural reforms 628–9
vulnerability 785–6
women's participation 628–9, 769
workfare programs 848–50 see also labor market reforms
employment dependency ratio 868
employment elasticities 604
1950–2008 575–6
excessive labor market flexibility 590–1
political economy issues 587, 589
relationship to investment growth 588, 589–92
sectoral analysis 587
employment protection, relationship to political ideology 801–2
employment relationships, ill-defined 786
ENAP 646, 647, 649
ENARSA 643
encaje, Colombia 223
energy balance, heterogeneity 637–8, 639
energy demand 636–7
energy integration 654–5, 657
energy intensity 136–7
energy sector, investment perspectives 648
energy sources 134, 136, 146–7
renewable 651–2, 656
biofuels 652–4 see also hydrocarbon sector
(p. 903) energy use by sector 638
enforcement of policies 58, 60–1, 63
enforcement ratio, labor laws 804–5, 806
Engerman, S. and Sokoloff, K., on colonial heritage 35
enhanced demographic dependency ratio 869, 870
environment
adjusted savings rates 143–4
biodiversity 137–8
climate change 148–52
consequences of natural resource-driven development 134
conservation efforts 138–9
fertilizer and pesticide use 139–40
greenhouse gas emissions 139
land use changes 138
multilateral agreements 153–6
soil degradation 139
urban 140–2
environmental conflicts 145
environmental expenditures 145
environmental policies 144–5
Global Green New Deal 147–8
implicit 146
loss of impetus 145–6
urgent activities 146
environmental sustainability 100, 130
conclusions 152–3
equilibrium, determining variables 231–2
equity, absence from Washington Consensus 103–4
Equity, Development, and Citizenship, ECLAC,2000 104
equity investment, volatility risks 169, 172
Escaith, H. and Morley, S.
study of Consensus-style reforms 94
on trade liberalization 372, 374, 375
Esquivel, G., Lustig, N., and Scott, J., on
Mexican income inequality 708–9
Estevadeordal, A., Freund, C., and Ornelas, E., on regional integration 358
ethano
biofuel mix for gasoline and diesel 654
production as biofuel 652–3
Ethier, W., on new regionalism 348
Euro-African societies 37–8
Euro-American societies 38
Euro-Indian societies 37
European countries, redistribution of income 306
European Economic Community (EEC) 323, 335
European Union
free trade agreements 332, 334
TFP growth 581
evolutionary approach to economic development 548–9
exchange controls 5, 14
exchange rate-based stabilization programs, trade-offs 204
exchange rate instability, effects 181
exchange rate populism 115
exchange rates 187, 220–3, 221, 760
1970s 190–2
1980s 192–5
1990s 195–8
2000s 198–203
comparison of new developmentalism and conventional orthodoxy 123, 125
crawling pegs 203–4
crisis periods 217–20, 219, 220
floating 204–5
FX market interventions 205
historical overview, 1950s and 1960s 188–90
as instrument of growth 125
new developmentalism 117
overvaluation 179, 180
relationship to financial flows 168
relationship to net capital inflows 177
stability, importance 181
tendency towards overvaluation 114–15, 116, 126
Washington Consensus 81, 83 see also real exchange rates
expansion to new areas 39, 46
export-enabling growth strategy 599
export-led growth 43
advantages 118
collapse 4–6
export pessimism 118
export-processing zones (EPZs) 451
export products, distance to quality frontier 535–6
(p. 904) export promotion policies 7, 14, 72, 319–20
export quality 596–7
export sophistication
relationship to economic growth 537
relationship to GDP 525–7, 526
“export subsidization,” Rodrik's study 55
export trajectories 597–8
exports
Adaptability Index (AI) 559
agro-food products 624, 625
destinations 626
to China
1985–2008 463
by sector and country 464, 465
composition by category 1990–2006, 135
destinations, 2000 and 2007 332–3
geographical structure 357
impact of Chinese demand 462–3
direct effects 463–5
indirect effects 465–7
product structure 356
relationship to GDP growth 595–6
top commodities 466
total value by subregional integration scheme 325–6
trends 319, 322, 370, 371 see also manufactured exports
external flexibility
labor market reforms 792–3, 794–5
relationship to executive ideology 801
external shocks 23
impact on aggregate demand 175
external vulnerabilities 226–7
externalities 524
self-discovery 528
Facing up to Inequality in Latin America, IDB 1998 104
Fanelli, J.M., on financial crises 257
fear of floating 199
Federal Reserve 222
feeding programs 840, 847–8
Fernάndez-Arias, E. and Montiel, P.
study of Consensus-style reforms 94
on trade liberalization 375
Ferreira, F. et al., on Brazilian income inequality 703, 704
fertility rate 520
fertilizer production 632
fertilizer use 132, 139–40
fertilizer-use subsidies 612
Ffrench-Davis, R., on gap between actual and potential GDP 179
Ffrench-Davis, R. and Griffith-Jones, S., on preconditions for capital flows 179
Ffrench-Davis, R. and Ocampo, J.A., on volatility 101
FGT index (α-measure of poverty) 718
financial crises 23, 161, 162
growth outcomes 216
implications of resulting regulations 172
inflation rates and volatility 215–16 see also crises
financial development 241–2
cluster analysis 248
coordination of policies 261–2
determinants 243
drivers of change 259
functional approach 258, 260
institution-building 262–3
institutional change 259–60
legal and judicial framework 261
link to economic growth 243
macroeconomic policy 260–1
relationship to crises and international financial integration 243–4
role of dysfunctionalities 259
financial intermediation 182
financial liberalization 17–18, 87, 111
financial liberalization index 1973–2002, 88
financial reforms 181–2
advance 1989–1999 91
financial sector, state participation 632
financial stability, trade-off with price stability 223
financial structure, relationship to dysfunctions and regulations 262
financial systems, stylized facts
banks and markets 248–51
regulatory changes 246–8
size 244–6, 245
financial volatility 749–50
financialization 745, 749
(p. 905) financierism 182
financieristic bias 181–2
financieristic trap 163
firewood production 132, 133
‘first-best’ policies 569, 599, 603, 605
fiscal balance, impact of capital flows 180
fiscal capacity 266–7
expenditures 271–4
taxation 267–71
fiscal decentralization 267
fiscal discipline 84
Washington Consensus 81
fiscal equilibrium, new developmentalism 120
fiscal legitimacy 304–5
improvement 310–12
fiscal pacts 304
fiscal policy 266, 289, 294
decentralization 281–5
improvement 306–9
interactions with monetary policy 227–30
pro-poor policies 759
relationship to democratic legitimacy 303–6
stabilization 274–81
sustainability of public finance 285–9
fiscal policy measures, comparison with OECD countries 296
fiscal reforms 303, 307
fiscal revenues, comparison with OECD countries 296
fiscal spending, pledges for progressivity 295
fiscal standards, comparison of new developmentalism and conventional orthodoxy 123, 125
fiscal systems, comparison with OECD countries 295–303
fiscal vulnerabilities 226–7
fish production 132, 133
Fiszbein, A. and Schady, N., on conditional cash transfers 736, 852
flexible exchange rate regimes 220–2, 223
flexicurity model 791–2, 795, 798, 808
“flight capital” taxation 87
floating and inflation targeting (FIT) regimes 198–200
RER volatility 201–2
floating exchange rates 190–1, 204–5
floods, increasing frequency 149
food crisis 632
food security programs 633, 840, 847–8
foreign banks 247
foreign countries constraint, developing countries 115
foreign direct investment (FDI) 438, 552, 605, 646
conclusions 456–7
environmental consequences 134
growth 168
hydrocarbon sector 647–8
inflows and outflows 1990–2008, 439
inward
classification 443–4
costs and benefits 439–41
distribution in Latin America 442
efficiency-seeking 450–2
market-seeking investment 446–50
natural resource-seeking investment 444–6
origin of flows 443
sectoral distribution 444
strategic asset-seeking 451–2
old and new regionalism 351, 353
outward 452–5
policy implications 457
two waves (1994–2003 and 2004–2008) 441–3
volatility 168–9
Washington Consensus 81
foreign exchange (FX) market interventions 199–200, 205, 232
foreign exchange policy 180–1 see also exchange rates
foreign exchange reserves 170, 173
foreign investment 8
comparison of new developmentalism and conventional orthodoxy 123, 124
forest, as proportion of land area 138
forest fires, increasing frequency 149
forest loss 131
forestry 133
formal dependency ratio 869, 870
formal institutions 33
fossil fuel use 134–5, 136, 637
(p. 906) Foucault, M., on development of social sciences 570
fracasomania 569
fragmentation of business groups 72
free trade agreements 7, 17, 323–31, 349, 359–61, 610–11
bilateral 328, 346, 610
Chile 403
dates of implementation 348
institutional structure 353
North-South agreements 364–5
proliferation in the Americas 365
role in labor laws enforcement 805, 807–8, 809–10
trans-continentalism 331–4
Free Trade Area of the Americas (FTAA) 327, 333–4, 337, 349, 359–61
negotiations structure 360
role in energy integration 655
Freund, C. and Ozden, C., on impact of Chinese export growth 474–5
Frieden, J. 53
fuel prices 146–7, 148
functional view of financial development 243
funding liquidity 253, 254
Furtado, C., Plano Trienal 120
fuzzy-set theory, poverty measurement 725
G-11 338
G-20 337
G-33 338
Galindo, L. and Ros, J., on Mexican FIT regime 202
garbage disposal 142
García Herrero, A. et al.
on banking system 252
cluster analysis of financial development 248
Garduño, H., on water rights markets 616
gas pipelines 649, 656
export capacity 650
gas production, FDI 444–6
Gasparini, L. and Cruces, G., on Argentinean income inequality 700–3
GATT (General Agreement on Tariffs and Trade) 319, 320, 322, 334, 345, 609–10
Uruguay Round 335, 336
Gavin, M. and Perotti, R., analysis of 1970–1995 period 298
GDP
1500–2001 29
1950–2008 575–6
accumulated increase 132
growth rates
effect of financial crisis 216, 217 see also economic growth
instability 174
relationship to aggregate demand 175–6
Geddes, B. 53
gender differentiation
economic activity of migrants to Spain and USA 508, 509
emigration 503–5
employment sectors of migrants to Spain and USA 509–10
social security coverage 872–5
General Theory of Employment, Interest and Money, The, John Maynard Keynes 5
geothermal energy 652
German Historical School 122
“getting the prices right” 17
Gini coefficients 93, 693 see also income inequality
Global Environment Facility 151
Global Environmental Outlook (GEO-4), UNEP 2007 137–8
Global Green New Deal 147–8
global warming see climate change
globalization 131, 358–9
first boom 43, 44
international migration 490–1
second wave 190–1
globalization studies 46
gold standard, abandonment 5
Goni, E., López, H., and Servén, L., on personal income taxes 268
government expenditures 271–4
comparison with OECD countries 296, 298, 299, 301–2, 302
effect of pro-cyclical fiscal policies 276
pro-cyclicality 275
reforms 307–9, 310, 311
government revenues
comparison with OECD countries 298, 299
composition 300–1
(p. 907) governments
eliciting information 539–41
participation in social security reforms 877
problems handling complexity 54–3
size
comparison with OECD countries 297
stabilizing role 277
gradual devaluation policies 7, 14
“great delay” 39
Great Depression 3, 4–5
“great divergence,” international relative growth rates 27
Greece, per capita GDP, 1950 and 1980 13
greenhouse gas emissions 139, 150
relationship to GDP 151
Griffith-Jones, S. and Ocampo, J.A., on international financial reform 161–2
gross enrollment ratio, relationship to natural resources 426, 430
growth collapses, duration, relationship to product space density 534
Growth Commission Report, 2008 101
growth strategies 99
growth volatility 744, 745
Guasch, J., on renegotiation of concessions 682–3
Guatemala
CCT program 736
civil service capacity 69
conservation efforts 139
decentralization 282
economic growth 1997–2007, 521
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
urban enrollment 817
electoral volatility 70
export shares by main destination, 2000 and 2007 333
FDI 442
government expenditure 272
Human Development Index 727
imports and exports, trends 370
judicial independence 68
labor laws, enforcement 806
labor market reforms 794
legislature capabilities 66
migration to USA and Spain 499
oil production 645
party system institutionalization (PSI) 71
Policy Index 62
poverty levels 717
multidimensional poverty index 735
public policies 61
relative growth performance 1990–2008, 21
size of financial system 245
social expenditure 273, 844
social security coverage 873
tariffrates, trends 321, 369
tax policy 271
tax revenue
from natural resources 144
as a percentage of GDP 269
TFP growth 581
unsatisfied basic needs (UBN) 730
wage gaps 385
weighted average growth rates 11
Guyana, multidimensional poverty index 735
Haber, S., on Mexican banking system 252
Haber, S., Razo, A., and Maurer, N., on Mexican property rights 417–18
hacienda system 38
Haiti
economic growth 1997–2007, 521
energy consumption 137
migration to USA and Spain 499
multidimensional poverty index 735
Haltiwanger, J. et al., on effects of trade liberalization 382
Hammill, M., on UBN 729
Hammond, G., on inflation targeting 231
Hanson, G. and Harrison, A., on Mexican income inequality 707
Hanson, G. and Robertson, R., on export capabilities 472
Hausmann, R. and Klinger, B., on product space 529–31
Hausmann, R. and Powell, A., on liquidity provision 222
Hausmann, R. and Rodríguez, F., on Venezuela 419
(p. 908) Hausmann, R. and Rodrik, D.
on information spillovers 527–8
on specificity of capabilities 529
Hausmann, R. et al., on growth accelerations 206
Hausmann, R., Hwang, and Rodrik, on income level of exports 525, 526
Hausmann, R., Rodríguez, F., and Wagner, R.
on crisis duration 534
on natural resource curse 415–16
Hausmann, R., Rodrik, D., and Velasco, A., on outcome of reforms 98
health, effect of conditional cash transfers 852, 854
health care spending 307
health coverage 753–4, 755, 850
access for informal workers 787
effect of reforms 773 see also social protection
Heckman, J. and Pagés, C., on labor market regulation 792
Heckman, J. et al., on returns to childhood interventions 857
Hemispheric Energy Initiative 654–5
hemispheric integration 366
Herrera, L.O. and Valdés, R., on dollarization 225–6
heterodox stabilization programs 194
hierarchies, problems with complexity 541–2
Hirschman, A. 523–4
on industrialization 6, 15
on “les trente glorieuses” 10
Historia económica de América Latina, Cardoso, C.F.S and Pérez Brignoli, H. 37–9, 41–2
Honduras
adjusted savings rate 143–4
civil service capacity 69
decentralization 282
economic growth 1997–2007, 521
education
age-enrollment profiles 815
average years of schooling 822
quantity 820–1
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
energy consumption 137
export shares by main destination, 2000 and 2007 333
FDI 442
features of public policies 61
government expenditure 272
Human Development Index 727
imports and exports, trends 370
judicial independence 68
labor laws, enforcement 806
legislature capabilities 66
migration to USA and Spain 499
party system institutionalization (PSI) 71
poverty levels 717
multidimensional poverty index 735
relative growth performance 1990–2008, 21
social expenditure 273, 844
social security coverage 873
tariffrates, trends 321, 369
tax revenue as a percentage of GDP 269
TFP growth 581
unsatisfied basic needs (UBN) 730
wage gaps 385
weighted average growth rates 11
Honohan, P., on deposit dollarization 224
Hoxby, C., on school productivity 829
Human Development Index (HDI) 12, 721–2
correlation with natural resource abundance 412, 413
relationship to natural resources 426, 427, 432, 433
data and empirical methodology 422–3
results 423–5
regional interactions 425, 432
variable definitions 434
trends 728
human development indicators, lack of correlation with economic growth 412
Human Poverty Index (HPI) 722
Humphreys, M., Sachs, J., and Stiglitz, J., on natural resource curse 415
Hwang, J., on within-product distance to quality frontier 534–5
(p. 909) hydrocarbon sector
economic importance 638, 640, 641
foreign direct investment 647–8
investment perspectives 648
natural gas and LNG markets 649–50, 656
oil multinationals 648–9
reforms 656
energy deficient countries 644–5
producing countries 641–4
state-owned and mixed enterprises 645–7 see also natural gas reserves; oil production
hydroelectricity use 136, 651, 652
energy integration 654
hyperbolic discounting 838
hyperpresidentialism 64
hysteresis phenomenon 550, 560–1, 564
Iberian tradition 570
ICT hardware industry
Brazil 449
Intel, Costa Rica 451–2
idiosyncratic risks 742
igniting growth 99
Ilzetski, E. and Végh, C., on pro-cyclicality of public expenditures 275
Imbs, J. and Wacziarg, R., on development process 524
immigration, international 488
implementation of policies 58, 60–1
implementation problems, Washington Consensus 96–7
implicit environmental policies 145, 146
Import Substitution Industrialization (ISI) 3, 51, 53, 117, 317, 345, 395, 552, 553
Argentina 400, 401
effects 602
foreign direct investment 440
rationalization 6–7
shift away 80, 569
Venezuela 404
imports
agro-food products 624, 625
composition by category 1990–2006, 135
geographical structure 357
manufactured, from China 483
product structure 356
trends 370, 371
Impossibilism 294
in-kind transfers 840, 847–8
income, relationship to social security coverage 872
income distributions 694–5
income elasticity ratio 547
income inequality 691–2, 710
Argentina 700–3, 701
Brazil 703–6, 704
‘excessive’ 693–4
Gini coefficients 693
influencing factors 696–700
Mexico 706–10, 707
relationship to infrastructure 670, 671, 672
income policy, comparison of new developmentalism and conventional orthodoxy 123, 126
increasing returns, technological capabilities 550–1
independence 39
Index of Family Development 730
indexation 224
India
poverty levels 603
TFP growth 581
indirect taxation, comparison with OECD countries 299–301
Indonesia, productivity growth 578, 579
industrial emissions 142
industrial employment, effect of trade liberalization 379–80
industrial planning, old and new regionalism 351, 352
industrial policies 17
absence in 1990s 554
new developmentalism 119
Industrial Revolution 40, 41, 46
industrialization 5–7
differences from resource-based activities 523
macroeconomic policies in the periphery 4–5
new paradigm 16–18
as source of inequality 40
(p. 910) state intervention 7–9see also state-led industrialization
technological learning 552–3
industry, fuel consumption 638
inequality 33, 41, 46, 59, 305, 309, 691
in education 830–1
effect of Consensus-style reforms 93, 94
impact on growth 44–5
in late nineteenth century 43–4
political effects 53
reduction 294, 295
relationship to infrastructure 670, 671, 672
as result of globalization 491
as result of industrialization 40
role of tax policy 268
in social expenditure 273–4
wage gaps 384–7, 388–9
Washington Consensus 103–4 see also income inequality
Inequality in Latin America and the Caribbean, World Bank 2004, 104
inflation rates 14, 236
1980s 193–4
1981–2009 215–16
1990s 84, 85
effect of crawling pegs 190
new developmentalism 120
relationship to income inequality 703
inflation targeting 223, 231, 232, 255
inflation volatility 744, 745
information acquisition, governments 539–41
informal employment 767–8
informal institutions 33
informal sector 772
access to social protection 779–81
conceptualization 773–5
dimensions, structure and country diversity 776–7
employment structure 778–9
social security coverage 872–5
strategy for inclusion and opportunities 782–3
ill-defined employment relationships 786
insecurity, vulnerability, and atypical contracts 785–6
labor rights 784–5
micro-enterprise regulations 783
social security access 787
as a voluntary option 781–2
information spillovers 527–8
infrastructure 659–60
access to services 668–9
conclusions 684–5
coordination failures 527
fiscal dimensions 678–9
foreign direct investment 440, 446–8
investment as percentage of GDP 676, 677
private sector participation 679–84
role in growth and development 670–4
roles of public and private sectors 674–6
trends 660–1
availability 661–4
quality 664–7
infrastructure development 8
infrastructure gap 660, 669
infrastructure investment, decline 750, 751
infrastructure spending 274
effect of pro-cyclical fiscal policies 276
Initiative for a Green Economy 147
Initiative for the Integration of the Regional Infrastructure of South America (IIRSA) 363–4
innovation 456, 562
absence from Washington Consensus 101–3
catching-up 549
economies of scale 524
in models of growth 524
NSI 551, 553, 563
self-discovery 527–8
insider trading laws, establishment 1990–2002 90
institution-building 262–3
institutional analysis, New Institutional Economics 33–4
institutional change 258, 259–60
institutional modernization 42–3
institutional weakness, resource dependent states 416–17
institutions
absence from Washington Consensus 101
distrust of 294–5
(p. 911) in new developmentalism 122
old and new regionalism 351, 353
instrument-based organizations 542
integrated social security systems 879, 880, 881
Intel, establishment in Costa Rica 451–2
intellectual property rights 336–7, 338
Inter-American Development Bank (IDB)
Competitiveness 102–3
on dollarization 224–5
Facing up to Inequality in Latin America 104
Latin America aft er a Decade of Reforms 101
Overcoming Volatility 100
inter-temporal adjustment, destabilizing 175–7
interest payments, comparison with OECD countries 301–2
interest rate spreads 252
interest rates 124
crisis periods 217, 218
in management of bubbles 236
Washington Consensus 81, 83
international capital markets, growth 162
international financial institutions, liquidity provision 256
international financial reform 162
international migration 488–90, 491–2
age structure 500–3
characteristics of migrant populations 493
conclusions 513–14
in context of globalization 490–1
emigration 492
gender differences 503–5
immigrants, emigrants and net migration 495
net migration 494
USA and Spain as destinations 497⌓8, 499
sociodemographic profiles of migrants 499–507see also migrants to Spain and USA
International Monetary Fund (IMF)
control of exchange rate adjustments 188–9
liquidity provision 256
role in avoidance of pro-cyclical fiscal policies 281
role in paradigm shift 16
international relations, and New Institutional Economics 34
intertemporal pattern, political interactions 63
intertemporal transactions 57
intra-household pollution 140
intra-industry trade 357
intraregional migration 489, 492
patterns 494, 496–7
investment
energy sector 648
role of state, comparison of new developmentalism and conventional orthodoxy 123, 124
investment growth
relationship to employment elasticities 588, 589–92
relationship to productivity growth 585–7, 588
investment patterns, comparison with Asian economies 582
investment rates, comparison with Asian economies 579–84
investment volatility 744, 745, 753
inward FDI
1990–2008 439
classification 443–4
conclusions 456–7
costs and benefits 439–41
distribution in Latin America 442
efficiency-seeking 450–2
market-seeking investment 446–50
natural resource-seeking investment 444–6
origin of flows 443
sectoral distribution 444
strategic asset-seeking 451–2
two waves (1994–2003 and 2004–2008) 441–3
inward-looking phase 318
Ireland, TFP growth 581
irrigation policies 615–16
ISEB (Instituto Superior de Estudos Brasilieros) 110
Isham, J. et al., on point source resources 398
issue-specific trade alliances 338–9
Italy
per capita GDP, 1950 and 1980 13
(p. 912) Ize, A. and Levy-Yeyati, E., on dollarization 224–5
Izquierdo, A. and Talvi, E., on current account and fiscal surpluses 227
Jâcome, L. and Vásquez, F., on central bank autonomy 231
Jamaica
conditional cash transfers 736, 853
imports and exports, trends 370
social expenditure 844
trends 845
tariffrates, trends 369
Japan
FDI 443
per capita GDP, 1950 and 1980 13
Jenkins, R.
on Chinese impact on domestic market 484
on manufactured exports 472, 474
job creation,1990s 93
judicial activism 67
judicial framework 261
judicial independence 67, 68
Kaminsky, G. and Reinhart, C., on twin banking and credit crises 256–7
Kaminsky, G. and Schmukler, S., financial liberalization index 87
Kaminsky, G., Reinhart, C., and Végh, C., on pro-cyclical behavior 178
Karl, T.L., on natural resource curse 416–17, 418
Kelvin, Lord 569
Keynes, John Maynard
The General Theory of Employment, Interest and Money 5
on public deficits 119
Klinger, B., on Peruvian self-discovery externalities 528
knowledge, absence from Washington Consensus 101–3
Korea, TFP growth 581
Krueger, A.O. 15
Krugman Index (KI) 556–7, 558
Kyoto Protocol 151, 152
signatories 155–6
labor contracts 772, 778
atypical 785–6
social security coverage 779–81, 780
labor deregulations 698
labor insertion 779
labor legislation 593, 775
enforcement 804
role of trade agreements 805, 807–8
trends 804–5, 806
historical analysis 791–2
labor market
effect of economic instability 752–5
effect of trade liberalization 371, 376–7
aggregate employment 378–9
employment mobility, stability, and informality 381–2
sector composition of employment 379–81
unemployment 377–8
wage gaps 384–7
wage levels 383–4
flexibility 589, 590–1, 604
liberalization 18
strength, effect on income inequality 699, 700
women's participation 628–9, 769
labor market reforms 790
1989–1999 91
conclusions 808–10
external flexibility 792–3, 794–5
flexicurity 798
patterns 798–800, 799
political and economic determinants 800–1
politics of employment protection 801–2
politics of personal compensation 803–4
politics of unemployment insurance 802–3
unemployment insurance 795–7
labor productivity, 1950–2008, 575–6
labor protection policies 760–3
labor rights, informal sector 784–5
labor supply, developing countries 114
labor training, spillovers 528
Laeven, L. and Valencia, F., on crises 257
Lall, S. and Weiss, J.
(p. 913) on Chinese export market shares 473–4
on export structures 471–2
land, foreign ownership 632
land cultivation, changes 617–18, 619–20
land redistribution processes 615, 632
land reform programs 762
landslides, increasing frequency 149
land use changes 138, 139
biofuel production 653
Landes, D.
on institutions 34
on natural resource curse 396
Landless Workers Movement 615
Larida proposal 196
Latin America after a Decade of Reforms, IDB 1997, 101
Latin American Economic Outlook 2009, OECD 2008 293–4
Latin American Free Trade Association (LAFTA) 323, 346
Latin American Integration Association (LAIA) 323, 346
total exports 1990–2007, 325
“Latin American Manifesto,” CEPAL (1949) 6
Law of the Sea, signatories 153–4
learning protection 549
Lederman, D. and Maloney, W., on natural resources 399, 412, 415, 418–19, 422
legal framework 261
legislature capabilities 66
legislatures 64–5
Legovini, A., Bouillon, C., and Lustig, N., on Mexican income inequality 706–7
Levine, R., on financial development 243
Levy, S., on social insurance 855–6
Lewis, A. 523
Lewis-type economy 114
liberal reforms 39, 41–2, 46
liberalization 241–2
association with crises 257 see also trade liberalization
life expectancy 520
demographic transition 768
relationship to natural resources 426, 431
Life-Expectancy Index 12
Lindauer, D. and Pritchett, L. 15
linkages between industries 523–4
Linz, J., on presidentialism 54
liquefied natural gas (LNG) market 650, 655, 656
liquidity provision 222, 254, 255–6
literacy ratio changes, relationship to natural resources 426, 429
Little I., Scitovsky, T., and Scott, M,. 15
“little divergence,” international relative growth rates 27
livestock production, changes 621, 622–3
Loayza, N. et al., study of Consensus-style reforms 94
Loayza, N., Fajnzylber, P., and Calderón, C., on trade liberalization 374, 375
lobby groups 540–1
López, A. and Ramos, D., on employment impact of Chinese imports 484
Lora, E., structural reform index 83, 88–9
Lora, E. and Barrera, F.
study of Consensus-style reforms 94
on trade liberalization 372, 375
Lora, E. and Panizza, U.
study of Consensus-style reforms 94
on trade liberalization 374, 375
lost decade 80, 320, 553–4
income inequality 691
poverty levels 630
lost half-decade 19
Love, J.L., on industrialization 6
low-dimensional policies 538
low financial development trap 250–1
Lubell, H., on informal sector 774
Lucas, R., model of growth 524
Lustig, N., on impact of adjustment policies 697
MacLeod, B. and Urquiola, M., on school productivity and student effort 830–2
macroeconomic policy 260–1
comparison of new developmentalism and conventional orthodoxy 123, 124–6
countercyclical 759
new developmentalism 119
macroeconomic populism 53
macroeconomic stabilization 104
1990s 84
econometric studies 94
Washington Consensus 82
(p. 914) macroeconomic volatility 743–5
Magaldi de Sousa, M., on judicial activism 67
Mainwaring, S. and Scully, T.R., on party system institutionalization 69
Malaysia
quantitative type regulations 166
TFP growth 581
Maloney, W.
on Argentina 420
on natural resource curse 417
managed floating 204–5, 206
management financing, social security systems 877
mangrove swamp loss 142
manufactured exports
regional LAC and home markets 480–4
competitiveness of LAC with China 471–5
growth
comparison of LAC and China 469–71
LAC share 471
threat from China 469–75, 479–80, 485
trends 319
world market competition 475, 476–8 see also exports
manufacturing
FDI 440, 446
MERCOSUR 448–50
outward 455
productivity gaps with US 594–5
manufacturing decline 600–2, 601
maquiladora plants 7, 319–20, 587
as source of uncertainty 748, 753
wage gaps 386
Marfán, M.
on fiscal policy and monetary policy interactions 227
on private sector exuberance 233, 235
Marfán, M., Medina, J.P., and Soto, C., micro-founded DSGE model 233
Marginality Index, Mexico 734, 736
marine ecosystem degradation 142
market-based financial systems 250
market discipline 605
market diversification 748
market failures 527–8
market liquidity 253–5
market making function of banks 252–3, 261
market-oriented reforms, impact on inequality 698, 699
market reforms 16–18, 104–5
policy diversity 18–19
market-seeking FDI 446
manufacturing in MERCOSUR 448–50
public utilities and infrastructure 446–8
market segmentation 253–4
Márques, G. and Pagés, C., on effects of trade liberalization 377, 378, 380
Marshall Plan 4
Martin, W., on natural resource curse 418
Marxism
approach to colonial heritage 36–8
comparison with New Institutional Economics 34
mass consumption 114
matching defined contributions (MDC) programs 846, 850, 851
Matsuyama, K., emphasis on productivity 523
maturity structure of debt 287
Menem, Carlos 401
MERCOSUR 324, 327, 328, 347, 348, 357
agro-food products 624, 625
challenges 362
changes in land cultivation 618, 620
changes in livestock 621, 623
FTAA negotiations 361
institutional structure 353
market-seeking manufacturing FDI 448–50
total exports 1990–2007, 325
trans-continental agreements 332
mergers and acquisitions (M&A) 168–9
Meso-American Biological Corridor 138
Meso-American Integration and Development Project (PM) 363, 364
Mesquita Moreira, M., on competitiveness with China 474, 485–6
Mexico
automobile industry, efficiency-seeking FDI 450–1
bilateral trade agreements 328
budget balance, 1990s 86
childhood interventions 857
civil service capacity 69
(p. 915) conditional cash transfers (CCTs) 852, 853, 854
conservation efforts 139
currency crisis, 1994s 197, 198
decentralization 282, 283
dependence on US market 748
diesel sulfur content 141
dollarization 225
economic growth
1997–2007 521
in crisis periods 217
state-led industrialization period 10, 12–13
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
educational spending 308
emigration 513
energy consumption 137
energy intensity 136–7, 137
environmental degradation, costs 143
exchange rate regime, late 1970s 192
exchange rates, crisis periods 219, 220
export promotion policies 72, 319–20
exports 470–1
to China 464
to Latin America 481
shares by main destination, 2000 and 2007 333
threat from China 475, 479, 480, 482, 485–6
external accounts, 1990–2002 234
FDI 442
outward 453
free trade agreements 330, 349
government expenditure 272
Human Development Index 727
hydrocarbon sector reforms 643
imports and exports, trends 370
income inequality 706–10, 707
inflation rates 14, 216
1980s 193–4, 194
1990s 85
inflation targeting 223
infrastructure
investment as percentage of GDP 677
trends 663
interest rates, crisis periods 218
investment rates 583
judicial independence 68
labor laws, enforcement 806
land cultivation changes 617–18, 619
legislature capabilities 66
livestock, changes 621, 622
“Living Better” strategy 633
maquiladora plants 7
Marginality Index 734, 736
migration to USA and Spain 499
mortality, under-5 141
natural gas reserves 640
natural resource use 419–20
oil production, economic importance 640
oil reserves 639
output, relationship to productivity and employment 573–4
Pacto de Solidaridad Económica 194–5
party system institutionalization (PSI) 71
per capita GDP
1820–2003 32
comparison with Vietnam 572
per capita income, growth, 1950–2006 112
peso crisis 161
Policy Index 62
poverty levels 717, 731–2
evolution by dimension 734
multidimensional measurement 733
multidimensional poverty index 735
price policies 611–12
private expenditure excess, 1990s 233
PROCAMPO program 612
productivity gaps with US 594, 595
proportion of land covered by forest 138
public balance as a percentage of GDP 280
public debt, 1990s 86
public investment 584
public policies 61
real exchange rates
1980–2008 209
1990–2002 234
volatility 201
redistribution of income 306
(p. 916) relative growth performance, 1990–2008 21
reserve accumulation 200
RP and K I indices 558
sector composition of employment 379–80
selective property rights 417–18
size of financial system 245
social expenditure 273, 844
trends 845
social security coverage 874
social security reforms 879
stock market turnover ratios 254
tariffrates, trends 321, 369
tax collection capacity 307
tax revenue as a percentage of GDP 269
Tequila crisis, labor market effects 753
TFP growth 581
trade liberalization 320–1
effect on wage levels 383
unsatisfied basic needs (UBN) 730
wage gaps 385, 386–7
weighted average growth rates 11
workfare program 848
Mexico-Japan Economic Partnership Agreement 331
micro-enterprises
informal employment 778, 779
labor costs 784
regulations 783
micro-entrepreneurship 782
micro-loans 762
middle-income countries, suitability of new developmentalism 113
migrants to Spain and USA
labor participation 507
economic participation 508
employment 508–12
sociodemographic profiles 499–500
age structure 500–3, 501
educational levels 506–7
milagre econômico, Brazil 190
mineral royalties allocation 284
minimum wage policies 761
Brazil 705, 706
lack of enforcement 630
mining
productivity gaps with US 594
mining production 132, 133–4
mixed economy model 8–9, 13
mixed models of industrialization 6–7
monetary policy
crisis periods 217–20
interactions with fiscal policy 227–30
multiple equilibrium approach 232
tackling exuberance 235, 237
Montreal Protocol, signatories 154–5
Morley, S.
on impact of market-oriented reforms 698
study of Consensus-style reforms 94
Morris, M.D., Physical Quality of Life Index 721
multidimensional poverty index 732–3, 735
multilateral environmental agreements 153–6
multilateral trade agreements 344
multiple equilibrium approach 232, 237
multiple exchange rates 5
Murillo, M.V., on labor reforms 790, 801
Naím, M., on Washington Consensus 79
Nash equilibria 604
National Agricultural Research Institutes (NARIs) 613–14
national developmentalism 108, 110, 111
comparison with new developmentalism 116–20, 119
national states 41
National System of Innovation (NSI) 551, 553, 563
nations, economic role 122, 123
natural gas
cross-border pipelines 649
LNG market 650
natural gas reserves 638, 640 see also hydrocarbon sector
natural gas use 637, 656
natural resource curse 396–9, 555
alleviation 418
Argentina 400–2
and Brazil 406–7
Chile, absence 402–3
(p. 917) Dutch Disease 414
institutional weakness 416–17
relationship to specificity of capabilities 533
terms of trade deterioration 414–15
Venezuela 403–6
volatility 415
vulnerability to external shocks 415–16
natural resource-driven development 131–4
environmental consequences 134
natural resource-seeking FDI 444–6
natural resource uses 419–22
natural resource wealth measurement 422
natural resources 152
compensation for loss 144
export share as indicator of structural change 556
OFDI 454–5
relationship to economic growth 411–12, 425, 426, 427–8
relationship to gross enrollment ratio 430
relationship to human development 412, 413, 432, 433
data and empirical methodology 422–3
results 423–5, 426, 427
regional interactions 425, 432
relationship to life expectancy 431
relationship to literacy ratio changes 429
sustainability 143
neo-classical economics 121, 520
neo-liberalism 568–71, 603–6
Chile 118
economic slowdown 571
neo-mercantilism 200
neo-structuralism 18–19
net migration (NM) 494
Netherlands, FDI 442, 443
network-like organizations 542
new activities
challenges 528–9
use of existing capabilities 529
new developmentalism 113–16
comparison with conventional orthodoxy 120–6
comparison with national developmentalism 116–20, 119
conclusion 126
New Institutional Economics (neoinstitutionalism) 32, 33–4, 45, 45–6, 122
approach to colonial heritage 34–6
comparison with Marxism 34
focus on domestic forces 39–40
‘new’ left 587, 589
new regionalism 341, 347
as complement to structural reforms 347–9
Free Trade Area of the Americas (FTAA) 359–61
MERCOSUR 362
policy instruments 351–3
policy objectives 349–50
structure of trade flows 355
trade openness 354
New Zealand
RP and KI indices 558
TFP growth 581
Nicaragua
CCT program 736
civil service capacity 69
conservation efforts 139
decentralization 282
economic growth, 1997–2007 521
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
urban enrollment 817
energy consumption 137
export shares by main destination, 2000 and 2007 333
FDI 442
government expenditure 272
Human Development Index 727
hydrocarbon sector reforms 645
imports and exports, trends 370
intraregional migration 496
judicial independence 68
labor laws, enforcement 806
labor market reforms 794, 800
legislature capabilities 66
migration to USA and Spain 499
Policy Index 62
(p. 918) poverty levels 717
multidimensional poverty index 735
public policies 61
relative growth performance, 1990–2008 21
social expenditure 273, 844
trends 845
social security coverage 873
tariffrates, trends 321, 369
tax revenue as a percentage of GDP 269
TFP growth 581
unsatisfied basic needs (UBN) 730
wage gaps 385
weighted average growth rates 11
Nicita, A., on Mexican income inequality 708
nominal exchange rate (NER) 187
non-contributory pension schemes 882
non-contributory social insurance (NCSI) schemes 842, 850–1
non-contributory social security 865
non-labor income inequality
Brazil 705
Mexico 709–10
non-tax revenues 300, 301
North, D., on institutions 33, 34, 36–7
North American Free Trade Area (NAFTA) 324, 347, 349, 359, 708, 808
effect on agricultural employment 381
institutional structure 353
intra-industry trade 357
North-South free trade agreements 364–5 see also Free Trade Area of the Americas (FTAA)
North-South struggle 334–5
Ocampo, J.
on capital account deregulation 247
on coordination of policies and regulations 261
on current account and fiscal surpluses 227
study of Consensus-style reforms 94
Ocampo, J. and Parra, M., on terms of trade deterioration 414
Ocampo, J. and Vos, R., on technological innovation 117
O'Donnell, G., on instability of democracies 52
OECD countries
fiscal policy measures 296
fiscal systems 296–303
off-equilibrium paths 232
official development aid (ODA) 878
“offshoring,” as source of uncertainty 748
oil boom 191, 421, 631–2
oil exploration, foreign direct investment 440
oil multinationals 648–9
oil production
economic importance 638, 640, 641
natural resource curse 416–17
Venezuela 403–6, 419, 420 see also hydrocarbon sector
oil reserves 638, 639
Brazil 407
oil royalties allocation 284
oil shocks 551
impact 320
old regionalism 341, 344–5
Andean Pact (Community of Andean Nations) 346–7
Central American Common Market 345–6
Latin American Free Trade Association (LAFTA) 346
policy instruments 351
trade openness 354
open architecture, lobby groups 540
open forest 531–2
relationship to economic growth 536
relationship to GDP 532, 534
Venezuela 419
“opportunity ropes” 857, 859
Ortega y Gasset, J. 570–1
output volatility 745
outward FDI 452–5
1990–2008 439
conclusions 456–7
by investor countries 1994–2008, 453
outward oriented growth strategy, Washington Consensus 82
over-optimism 178, 235
Overcoming Volatility, IDB 1995 100
overcrowding 729, 730
(p. 919) ozone layer
Montreal Protocol 154–5
Vienna Convention 154–5
P-900 program, Chile 829
Pacto de Solidaridad Económica, Mexico 194–5
Panama
adjusted savings rate 143–4
civil service capacity 69
decentralization 282
economic growth
1997–2007 521
state-led industrialization period 10
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
urban enrollment 817
export shares by main destination, 2000 and 2007 333
FDI 442
government expenditure 272
Human Development Index 727
judicial independence 68
labor laws, enforcement 806
labor market reforms 794, 800
legislature capabilities 66
migration to USA and Spain 499
party system institutionalization (PSI) 71
per capita income, growth, 1950–2006 112
poverty levels 717
public policies 61
relative growth performance 1990–2008, 21
size of financial system 245
social expenditure 273, 844
social security coverage 780, 874
social security reforms 879
tax revenue
from natural resources 144
as a percentage of GDP 269
wage gaps 385
weighted average growth rates 11
Paraguay
civil service capacity 68, 69
decentralization 282
economic growth 1997–2007, 521
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
export shares by main destination 2000 and 2007, 332
FDI 442
government expenditure 272
Human Development Index 727
imports and exports, trends 370
inflation rates 14
judicial independence 68
labor laws, enforcement 806
labor market reforms 795
legislature capabilities 66
migration to USA and Spain 499
party system institutionalization (PSI) 71
per capita income, growth 1950–2006, 112
Policy Index 62
poverty levels 717
multidimensional poverty index 735
public policies 61
relative growth performance, 1990–2008 21
social expenditure 273, 844
trends 845
social security coverage 873
tariffrates, trends 321, 369
tax revenue as a percentage of GDP 269
TFP growth 581
wage gaps 385
weighted average growth rates 11
parametric social security reforms 865
parliamentary forms of government 54
participatory poverty assessments (PPA) 725–6
partisan politics see political ideology
party system institutionalization (PSI) 69–70, 71
path-dependency 529, 569
Paus, E., domestic competition index (DCI) 481
PDVSA 644, 645, 646, 647, 649
OFDI 454
peasants, as workforce 41
pension coverage 753–4, 755, 843
access for informal workers 787
effect of reforms 772
individual savings schemes 18
informal sector 784
non-contributory schemes 882 see also social protection
pension funds, effect on liquidity 253
pension reforms 88
role of World Bank 866–7
per capita GDP 27
1500–2001 28
effect of Consensus-style reforms 91–2
relationship to CO2 emissions 151
relative, Latin America and East Asia, 1980–2006 92
per capita income, growth 1950–2006, 112
Pérez, Carlos Andrés 404
peripheral capitalism 38–9
“periphery” of world economy 4
Perón, J. 400–1
Perry, G. et al.
study of informal sector 781
on vicious circles 752
personal compensation for risk of job loss 792, 797, 798
personal income taxes 268
comparison with OECD countries 300, 301
decentralization 283
personal security 798
relationship to political ideology 803–4
Peru
adjusted savings rate 143
budget balance, 1990s 86
CCT program 736
childhood interventions 857
civil service capacity 68, 69
decentralization 282
dollarization 200, 225
economic growth
1997–2007 521
in crisis periods 217
education
average years of schooling 822
ranking by attendance and effectiveness 825
ranking by effectiveness gap 824
reading proficiency 827
urban enrollment 817
electoral volatility 70
exchange rates, crisis periods 219
exports
to China 464, 465
shares by main destination, 2000 and 2007 332
FDI 442
hydrocarbon sector 647, 648
FIT regime 199–200
government expenditure 272
Human Development Index 727
hydrocarbon sector reforms 642, 643
imports and exports, trends 370
inflation rates, 1990s, 85
inflation targeting 223
infrastructure
investment as percentage of GDP 677
trends 663
interest rates, crisis periods 218
judicial independence 68
labor laws, enforcement 806
labor market reforms 794, 800
legislature capabilities 66
macroeconomic policy, 1990s 197
migration to USA and Spain 499
natural gas reserves 640
natural resource use 421
oil production, economic importance 640
oil reserves 639
party system institutionalization (PSI) 71
per capita income, growth, 1950–2006 112
Policy Index 62
poverty levels 717
multidimensional poverty index 735
productivity growth 578, 581
public balance as a percentage of GDP 280
public debt 1990s, 86
public policies 61
real exchange rates, 1980–2008 210
volatility 201
redistribution of income 306
relative growth performance, 1990–2008 21
reserve accumulation 200
(p. 921) self-discovery externalities 528
size of financial system 245
social expenditure 273, 844
trends 845
social security coverage 873
social security reforms 879
stock market turnover ratios 254
tariffrates, trends 321, 369
tax reforms 310
tax revenue
from natural resources 144
as a percentage of GDP 269
wage gaps 385
weighted average growth rates 11
workfare program 849
peso crisis 161
pesticide use 139–40
Rotterdam Convention 155–6
PETROBRAS 646, 647, 649
modernization 643
OFDI 454
PETROCARIBE 645
PETROECUADOR 646, 647
petroleum, price 146–7
PETRONIC 645
PETROPERU 643, 646, 647
pharmaceutical industry, intellectual property rights 336–7
Philippines, private investment 583
Physical Quality of Life Index 721
PINE 143
Piñra, Sebastian 403
Pinochet, Augusto 402
Plan Real, Brazil 196, 229–0
Plano Trienal, Celso Furtado 120
plantations 38
PLUSPETROL 649
point source resources 398
polarization of employment 490, 509–12
policies
characteristics 55–6, 58–9, 60–1, 74
price controls 611–12
policy cooperation 56, 59
influencing factors 63–4
civil service capacity 67–8
congressional capabilities 64–5
judicial independence 67
party system characteristics 69–70, 71
policymaking arenas 72–3
socioeconomic interest groups 71–2
Policy Index 59, 62
policy recommendations 73–4
policy trends 317–18
policymaking 50, 543
applications of multidimensional poverty measurement 734, 736–8
countercyclical and pro-poor policies 759–60
education expenditure 828–30, 831–2
eliciting information 539–41
labor protection and social policies 760–3
regional integration 343
social security reforms 872, 876
fiscal viability 876
policymaking arenas, institutionalization levels 72–3
policymaking process (PMP) 55
cooperation 56
country level information 73
as an intertemporal game 57
spatial dimension 57
political economy 51–4
political ideology
relationship to employment protection 801–2
relationship to external flexibility 801
relationship to personal compensation 803–4
relationship to unemployment insurance 802–3
role in labor reform 793
political incentives, role in pro-cyclical fiscal policies 278–9
political institutions 56
political parties
linkages with voters 70
party system institutionalization (PSI) 69–70, 71
political regimes 54
political transparency 310–11
pollution
intra-household 140
PM10 emissions, selected cities 141
Pombalian reforms 39, 46
(p. 922) population growth 132
1500–1820 and 1820–2001 30
1500–2001 29
populist cycles 53
Portugal, per capita GDP, 1950 and 1980 13
postwar period 3, 319
development performance 9–14
phases of economic growth 551–4
poverty 736–8
as capability failure 719–20
measurement 718
monetary approach 718
multidimensional measurement 720–1
disaggregated data 723–5
human development approach 721–3
Human Development Index (HDI) 726–7
policy applications 734, 736–8
recent measures 730–4
subjective and participatory approaches 725–6
unsatisfied basic needs (UBN) 727–30
multidimensionality 715–16, 718–19
relationship to growth 751–2
targeted social policies 756
typologies 736–7
working poor 773
poverty-insecurity trap 751–2
poverty levels 22, 273, 294, 295, 305
1980s onwards 21–2
Brazil 704
effect of Consensus-style reforms 92–3, 94, 95
India 603
rural populations, effects of structural reforms 629–30
trends 716, 717
poverty line 718
poverty reduction 632–3, 757, 837, 859
challenges 856–8
conditional cash transfers (CCTs) 852, 853
labor protection and social policies 760–3
risk mitigation 758–60
Prasad, E. et al., on volatility of FDI 168
pre-school enrollment 857
Prebisch, R. 395, 523
on environmental sustainability 130
Prebisch-Singer thesis 396
precios de concertación 611–12
precipitation, changing patterns 148
preferential trade agreements 329–30, 344, 355, 357
presidential democracies, instability 54
presidents, visits to Wall Street 182
price bands 337, 611
price-based regulations 166
price controls 611
price stability 236
trade-off with financial stability 223
price volatility 610
primary exports 7
primary-product exporters, growth performance 397–8
primary surpluses 286
principal components analysis (PCA), in measurement of poverty 723
Pritchett, L., on education quality 827–8, 829
private bond markets 248
private capital flows
diversification 167–72
global influences 172
new policy strength and challenges 173–4
origins of surges 167
risks of derivatives 173
private credit/ GDP ratio 251
private investment 583
private-sector exuberance 233, 235, 236–7
privatization 17–18, 247, 248, 554
1990s 87–8
advance 1989–1999 91
effect on employment 771–2
effect on inequality 94
hydrocarbon sector 641
infrastructure industries 659–60, 675–6, 679–82, 685
achievements 682–4
Washington Consensus 81, 82, 83
pro-cyclicality of fiscal policy 267, 274–5
avoidance 279–80
causes 278–9
consequences 275–8
‘pro-poor’ model 604–5
PROCAMPO program 612
processed agricultural products 624
(p. 923) product distance to quality frontier 535–6
product space 529–32, 538
centrality of goods 533
position of LACs 532–3
relationship to crisis duration 534
product structure, trade flows 356
production sector policies 23
productive transformation 543–4
obstacles 527, 536, 538
Productive Transformation with Equity, ECLAC 1990, 104
productivity gaps 594
with US 559–61, 560
productivity growth 523, 550, 563, 603
effect of Consensus-style reforms 91
effect of economic slowdown 573
effect of trade liberalization 374, 376, 388
interaction with structural change 561–2
international perspective 577–9, 580
relationship to investment growth 585–7, 588
sustainability 577
TFP growth 603
comparison with Asian economies 579, 580, 581
programmatic linkages, political parties 70, 71
Progresa, Mexico 709–10, 736, 852, 854
property rights 33
comparison of new developmentalism and conventional orthodoxy 123
effect of crises 257
intellectual 336–7, 338
selective 417–18
Washington Consensus 81
protectionist policies 5–6, 552–4, 563
prudential framework 260–1
Psacharopoulos, G. et al., on income inequality 694
public deficits 119–20
public balances as a percentage of GDP 280
public bonds/GDP ratios 248, 251
public debt
1990s 86
domestic component 287, 288, 289
interest payments 301–2
maturity structure 287
relationship to sovereign rating 288
unexplained changes in stock of debt 286–7
public debt management 267, 285–6
public expenditure re-prioritization, Washington Consensus 81, 82, 83, 88–9
public finance restructuring 1990–17
public finance sustainability 285–9
public goods provision 271–4
public investment
1970–2008 583–4
impact of capital flows 180
public sector balance sheet, effect of crises 257
public services, foreign direct investment 440, 446–8
public spending 266
effect of pro-cyclical fiscal policies 276
pro-cyclicality 275
reforms 307–9, 310, 311
public-private partnerships (PPPs), infrastructure industries 681–2
renegotiation 682–3
public-regardedness of policies 59, 60–1
Puebla-Panama Plan s ee Mesoamerican Integration and Development Project
quality frontier, product distances 535–6
quantitative type regulations 166
Rajan, R., on financial development 258
Rama, M., on trade liberalization, effect on wage levels 383
Ramsar Convention on Wetlands of International Importance, signatories 153–4
re-centralization 285
re-election rates, Congress 65
reading proficiency 826–7
real exchange rate (RER)
Argentina 207
Brazil 208
Chile 208
Colombia 209
influence on macroeconomic performance 203
Mexico 209
Peru 210
(p. 924) relationship to net capital inflows 177
stable and competitive (SCRER) 190, 202–3, 205–7
volatility, FIT countries 201–2 see also exchange rates
Real Plan, Brazil 196
reallocation of labor 382
rebound effects 569–70
recessions
incidence 746
as source of uncertainty 745
RECOPE 644
rediscount loans 255
redistribution of income 305, 306, 837
REFIDOMSA 645
reform fatigue 242
reforms 54, 321
comparison of new developmentalism and conventional orthodoxy 123–4
effects on social protection 772–3
employment generation and informality 769–73
foreign direct investment 440
market-oriented 55
neo-liberalism 568–9 see also labor market reforms
social security reforms
taxreforms
Washington Consensus
regasification plants 650, 651
regional integration 323–31
conclusion 365–6
efficiency and welfare effects 358
Free Trade Area of the Americas (FTAA) 359–61
future perspectives 358–9
intra-industry trade 357
new developmentalism, as complement to structural reforms 347–9
new regionalism 347
policy objectives 349–50
old regionalism 344–5
Andean Pact (Community of Andean Nations) 346–7
Central American Common Market 345–6
Latin American Free Trade Association (LAFTA) 346
performance, trade openness 353–4
policy instruments 351–3
preferential trade agreements 355, 357
rationale
economic welfare 342
policy signaling 343
systemic strategies 343–4
structure of trade flows 355, 356–7
subregional agreements 362–4
regional markets, competition from China 480–2
regional oligopolies 593
regionalism 318
regulation of markets 121
case for 163–5
experience 166–7
objectives 165–6
regulation of social security systems 877, 881
regulations, relationship to financial structure 262
regulatory changes 260
banking systems 246–8
Reinhart, C. and Rogoff, K., on banking crises 247, 257
relative backwardness 31, 45
dependency school approach 52
link to colonial heritage 26, 32, 34, 36, 45
Relative Participation (RP) index 557, 558
relative per capita GDP 9
relative rate of assistance (RRA) 627
remittances 489
renewable energy use 136, 146, 637, 651–2, 656
biofuels 652–4
Uruguay 148
rent-seeking 416
repo transactions 253
research policies 613–14
reserve accumulation 205
2000s 200
resource-based activities, differences from industrialization 523
resource endowments 35, 44 see also natural resources
Revenga, A., on Mexican income inequality 707–8
“reversal of fortune” argument 36
reversibility of financial flows 168, 174
(p. 925) Ribe, H., Robalino, D., and Walker, I.
on food-based programs 847–8
on social insurance 856
risk adaptation 760
risk coping 760–1
risk management 743, 836
risks from economic insecurity 742
road density, trends 662–3, 664
road networks, investment as percentage of GDP 677
road quality, trends 662–3, 666, 667
Roca Runciman Treaty 400
Rodríguez, F. and Gomolin, A., on
Venezuela 419
Rodríguez, F. and Hausmann, R., on
Venezuela 419
Rodríguez, F. and Sachs, J., on natural
resource curse 415
Rodrik, D.
on effects of trade liberalization 382
on growth strategies 99
study of “export subsidization” 55
Romer, P., model of growth 524
Ros, J., on benefits of natural resources 416
Rosenstein-Rodan, P. 523
Rotterdam Convention, signatories 155–6
roundwood production 132
rules of origin, old and new regionalism 351, 352
rural access index (RAI) 668, 669
rural development 608–9
rural non-farm employment (RNFE) 629
rural populations, effects of structural reforms 628–9
rural poverty 22
effects of structural reforms 629–30
rural-urban inequality
income 708
social security coverage 872–5
Russian crisis 197, 198
monetary policy 217
Sachs, J., on income inequality 53
Sachs, J. and Warner, A., on natural resource curse 414–15
Saiegh, S.M., comparison of legislatures 65
Sala-i-Martin, X. and Subramanian, A. on natural resource curse, 417
Sánchez-Páramo, C. and Schady, N., on wage differentials 698
sanitation 142, 146, 729
access to facilities 669
investment as percentage of GDP 677
savings constraint, developing countries 115–16
Scandinavian countries, natural resource use 420
Scartascini, C. et al., on civil service capacities 68
Scartascini, C., Stein, E., and Tommasi, M., on judicial independence 67
Schmidt-Hebbel, K., on inflation targeting 231
Schmidt-Hebbel, K. and Werner, A., on
policy reaction to exchange rates 223
Schmukler, S. and de la Torre, A., on financial development 251
Schneider, B.R., on role of business groups in PMP 72
school attendance 729, 814–16