Entrepreneurship -- manifested in the entry of new firms or products into new markets, or substantial improvements in technological capacity or process innovation by incumbent firms -- is widely considered to be an important ingredient for long term economic development. This report argues that entrepreneurship is also a source of employment generation, export growth, and resilience during economic downturns. Although the conventional wisdom suggests that Latin American and Caribbean count...

This book proposes a renewal of 'Open Regionalism' in Latin America and the Caribbean (LAC) aimed at achieving the region's goals of high growth with stability. The LAC region experienced a growth spurt with equity during the first decade of the 21st Century. It is well understood that an unsustainable demand boom fueled by terms-of-trade improvements drove this growth acceleration episode, especially in South America. Unfortunately, terms of trade are no longer fueling growth, and the reg...

This book proposes a renewal of 'Open Regionalism' in Latin America and the Caribbean (LAC) aimed at achieving the region's goals of high growth with stability. The LAC region experienced a growth spurt with equity during the first decade of the 21st Century. It is well understood that an unsustainable demand boom fueled by terms-of-trade improvements drove this growth acceleration episode, especially in South America. Unfortunately, terms of trade are no longer fueling growth, and the reg...

This volume studies the role of natural resources in development and economic diversification. It brings together a variety of analytical perspectives, ranging from econometric analyses of economic growth to historical studies of successful development experiences in countries with abundant natural resources.

The argument that digitalization fosters economic activity has been strengthened by the global COVID-19 pandemic. Because digital technologies are general-purpose technologies that are usable across a wide variety of economic activities, the gains from achieving universal coverage of digital services are likely to be large and shared throughout each economy. However, the Middle East and North Africa region suffers from a “digital paradox†?: the region’s population uses social media more th...

The argument that digitalization fosters economic activity has been strengthened by the global COVID-19 pandemic. Because digital technologies are general-purpose technologies that are usable across a wide variety of economic activities, the gains from achieving universal coverage of digital services are likely to be large and shared throughout each economy. However, the Middle East and North Africa region suffers from a "digital paradox": the region's population uses social media more tha...

How do labor market frictions shape the impact of international trade on jobs and wages? This report provides a comprehensive analysis of labor mobility costs and their impact on trade liberalization, focusing on developing countries. It's for policymakers, economists, and international development professionals seeking to understand the complex dynamics between trade and labor markets.Discover how 'sticky feet'—labor market frictions—affect worker decisions, emplo...

Analyzing the experience of Mexico under the North American Free Trade Agreement (NAFTA), Lessons from NAFTA aims to provide guidance to Latin American and Caribbean countries considering free trade agreements with the United States. The authors conclude that the treaty raised external trade and foreign investment inflows and had a modest effect on Mexico's average income per person. It is likely that the treaty also helped achieve a modest reduction in poverty and an improvement in job quali...

The economic successes of China and India are viewed with admiration but also with concern because of the effects that the growth of these Asian economies may have on the Latin American and Caribbean (LAC) region. The evidence in China's and India's Challenge to Latin America indicates that certain manufacturing and service industries in some countries have been negatively affected by Chinese and Indian competition in third markets and that LAC imports from China and India have been...

Mozambique is an economic success story in sub-Saharan Africa (SSA). Its remarkable achievements offer valuable lessons to other low-income countries in a post-stabilization economic phase, including how they can efficiently manage a scaling up of foreign aid aimed at poverty reduction. Of special interest to other sub-Saharan countries are the book's discussions of Mozambique's progress toward consolidating macroeconomic and financial stability, and the challenges it faces in ensuring lon...

Despite its vast oil wealth, central Africa still struggles to sustain strong, inclusive economic growth or to generate sufficient employment opportunities, particularly for its fast-growing youth population. Drawing on new research, Oil Wealth in Central Africa lays out the macroeconomic and growth challenges facing the region; examines oil wealth management and its implications for poverty reduction; and includes four case studies that exemplify lessons learned.

Why has the Eurozone ended up with an unemployment rate more than twice that of the United States more than six years after the collapse of Lehman Brothers? Why did the vast majority of low- and middle-income countries suffer a prolonged economic slowdown in the last two decades of the 20th century? What was the role of the International Monetary Fund in these economic failures? Why was Latin America able to achieve substantial poverty reduction in the 21st century after more than two deca...