Is The Growth Momentum In Latin America Sustainable

A favorable external environment coupled with prudent policies fostered output growth in most of Latin America during the last decade. But, what were the drivers of this strong growth performance from the supply side and will this momentum be sustainable in the years ahead? We address these questions by identifying the proximate causes of the recent high GDP growth and estimating potential growth rates for the period ahead for a large group of Latin American countries based on standard (Solow-style) growth accounting methodologies. We find that factor accumulation (especially labor), rather than growth in total factor productivity (TFP), remains the main driver of GDP growth. Moving forward, given the expected moderation of capital accumulation and some natural constraints on labor, the strong growth momentum is unlikely to be sustainable unless TFP performance improves significantly.

Latin America and the Caribbean needs an ambitious and comprehensive investment agenda to embark on a stronger and more sustainable development trajectory. The 16th edition of the Latin American Economic Outlook proposes ways to make this possible through co-ordinated actions by policy makers, the private sector and international partners.

Consisting of country case studies and comparative analyses from Latin American and US based political economists, this volume examines the recent history of foreign investment for development in Latin America in the context of the current backlash against ‘Washington Consensus’ policies. These essays form the broad conclusion that foreign direct investment fell far short of generating the necessary linkages for sustainable economic development.

Many of the contributing social scientists are Latin American, and their ideas are presented in English for the first time here. They combine the two paradigms of sustainable development and globalization to explore how the latter impacts prospects for the former, and consider how best to build partnerships between the state and other agencies of civil society at the national, subnational, and local levels. Among the topics are lessons from the European experience of privatization and neoliberalism, regionalism and globalism as alternative models for Latin American integration, the consequences of privatization in Chile, and case studies of three regions in Brazil. Annotation copyrighted by Book News, Inc., Portland, OR

During Latin America’s China-led commodity boom, governments turned a blind eye to the inherent flaws in the region’s economic policy. Now that the commodity boom is coming to an end, those flaws cannot be ignored. High on the list of shortcomings is the fact that Latin American governments—and Chinese investors—largely fell short of mitigating the social and environmental impacts of commodity-led growth. The recent commodity boom exacerbated pressure on the region’s waterways and forests, accentuating threats to human health, biodiversity, global climate change and local livelihoods. China and Sustainable Development in Latin America documents the social and environmental impact of the China-led commodity boom in the region. It also highlights important areas of innovation, like Chile’s solar energy sector, in which governments, communities and investors worked together to harness the commodity boom for the benefit of the people and the planet.

Using a combination of thorough research and practical examples, Strategy and Competitiveness in Latin American Markets explains how the concept of the sustainability frontier that the book develops resolves the long-running debate on whether sustainability requires trade-offs or not.

Approximately 80 per cent of the population of Latin America is concentrated in urban centres. Pressure on water resources and water management in cities therefore provide major challenges. Despite the importance of the issues, there has been little systematic coverage of the topic in book form. This work fills a gap in the literature by providing both thematic overviews and case study chapters. It reviews key aspects of why water matters in cities and presents case studies on topics such as groundwater management, green growth and water services, inequalities in water supply, the financing of water services and flood management. Detailed examples are described from Argentina, Brazil, Colombia, Ecuador, Mexico and Peru, and there is also a chapter comparing lessons which might be learnt from US cities. Contributing authors are drawn from both within and outside the region, including from the Inter-American Development Bank, OECD and World Bank to set the issues in a global context.

Despite some global risks, external conditions for Latin America should remain stimulative. With monetary policy in advanced economies expected to stay accommodative, external financing conditions will remain favorable. Strong demand from emerging Asian economies and the gradual recovery of advanced economies will continue to support commodity prices, benefiting exporters. The main policy challenge for most of the region is to take advantage of current conditions to continue buttressing a foundation for sustained growth. Other issues important to the region include: (i) strengthening balance sheets; (ii) understanding how changes in external conditions could impact public and external debt dynamics; and (iii) making the best use of the windfall from the recent terms-of-trade boom.