Shaping Inclusive Markets: How Funders and Intermediaries can Help Markets Move toward Greater Economic Inclusion

Positive progress toward worldwide economic inclusion is not only possible, but can also be made more possible. In Shaping Inclusive Markets, we draw lessons from history on how more inclusive markets have been achieved and highlight ways in which funders and intermediaries can strengthen the conditions for change

Financial protection of the state against natural disasters : a primer

This paper has been prepared for policy makers interested in establishing or strengthening financial strategies to increase the financial response capacity of governments of developing countries in the aftermath of natural disasters, while protecting their long-term fiscal balances. It analyzes various aspects of emergency financing, including the types of instruments available, their relative costs and disbursement speeds, and how these can be combined to provide cost-effective financing for the different phases that follow a disaster. The paper explains why governments are usually better served by retaining most of their natural disaster risk while using risk transfer mechanisms to manage the excess volatility of their budgets or access immediate liquidity after a disaster. Finally, it discusses innovative approaches to disaster risk financing and provides examples of strategies that developing countries have implemented in recent years.Debt Markets,Hazard Risk Management,Natural Disasters,Banks&Banking Reform,Insurance&Risk Mitigation

Discourses on Violence in Costa Rica, El Salvador, and Nicaragua: Youth, Crime, and the Responses of the State

The paper analyzes the social construction of youth violence in Nicaragua, Costa Rica, and El Salvador on the one hand, and the related security policies of the three states, on the other. In each country, there is an idiosyncratic way of constructing youth violence and juvenile delinquency. Also, each country has its own manner of reaction to those problems. In El Salvador youths are socially constructed as a threat to security, and the state implements predominantly repressive policies to protect citizens against that threat. In Nicaragua and Costa Rica, where the social discourse on youth violence is less prominent, the state's policies are neither very accentuated nor very coherent, whether in terms of repressive or nonrepressive measures. There are strong relations and mutual influences between the public's fear (or disregard) of youth violence and the state's policies to reduce it.Central America, youth violence, security policies, discourse analysis

Instituciones, estructura económica y política económica: ¿Qué hay detrás de la inflación en América Latina?

In this paper we examine the importance of institutional arrangements and factors related to the economic structure to explain inflation outcomes in Latin America. We perform a dynamic panel data analysis with an ample set of variables that allowed us to consider the temporal dimension of the data, and to control for endogeneity. Results lead us to believe that institutional arrangements – other than central bank independence – have played an important role in terms of inflation outcomes in Latin America. Variables that may affect inflation via time consistency problems seem somewhat more relevant than those suggested by optimal tax considerations. In particular, the negative correlation between political constraints to changes in public policies and inflation in Latin America is quite suggestive. We find that less flexible exchange rate regimes, advances in structural policies, and better government institutions have contributed to the reduction in inflation rates in the region. Faster growing countries exhibited lower inflation rates. Openness to trade seems to be positively correlated with inflation, suggesting that more open economies are more exposed to external shocks, allowing countries to benefit in terms of importing lower international inflation rates in recent years. Other variables did not prove to be significant.Latin America, inflation, institutions, economic structure

Development under conditions of inequality and distrust: Social cohesion in Latin America

"This paper analyzes the role of social cohesion in economic and institutional development and, broadly, the creation of welfare in Latin America. The paper defines the concept of social cohesion with reference to the notions of social capital and inequality. Using data and literature on Latin America, the paper argues that low interpersonal trust and entrenched inequality interfere with cohesion. The paper develops and introduces an exploratory index of cohesion structured around the definition proposed. Relying on correlations, and with appropriate caveats, the paper uses this index to explore tentative linkages between levels of cohesion and development outcomes. The paper presents evidence of positive linkages among social cohesion and economic growth, investment and innovation capacity, governmental effectiveness, the quality of public policies, and the predictability of the policy environment. Finally, the paper discusses the significance of these findings and some of the policy implications." from Author's AbstractSocial cohesion, Social capital, Trust, Inequality, Exclusion, Opportunities, Governance, Institutional development, economic growth, Development strategies,

Safeguards and antidumping in Latin American trade liberalization

The binding of tariff rates and adoption of the General Agreement on Tariffs and Trade/World Trade Organization-sanctioned safeguards and antidumping mechanisms provided the basis to remove a multitude of instruments of protection in the Latin American countries discussed in this paper. At the same time, they helped in maintaining centralized control over the management of pressures for protection in agencies with economy-wide accountabilities. The World Trade Organization's procedural requirements (for example, to follow published criteria, or participation by interested parties) helped leaders to change the culture of decision-making from one based on relationships to one based on objective criteria. However, when Latin American governments attempted to introduce economic sense - such as base price comparisons on an economically sensible measure of long-run international price rather than the more generous constructed cost concept that is the core of WTO rules - protection-seekers used the rules against them. They pointed out that World Trade Organization rules do not require the use of such criteria, nor do procedures in leading users (industrial countries) include such criteria. In sum, the administrative content of the rules supported liberalization; the economic content did not.Economic Theory&Research,Free Trade,Trade Law,Emerging Markets,Trade Policy

Regional Study on Social Dimensions of MPA Practice in Central America: Cases Studies from Honduras, Nicaragua, Costa Rica and Panamá

This research focuses on the social dimensions of marine conservation, and makes an assessment of the experiences of coastal and fishing communities with regard to the governance of MPAs in North America (Central America); based on case studies from Honduras, Nicaragua, Costa Rica and North America (Central America)-Panama;. It examines the national contexts of the above countries in relation to the governance of MPAs. Furthermore, it analyzes the social impacts of MPAs on coastal communities by gathering the experiences and the voices of the communities and institutions involved, and reflects on how to build bridges in the search for forms and models of conservation that respect human rights and which are able to successfully integrate into local development efforts without affecting cultural and/or social patterns. To this end, this monograph looks at nine case studies across the region: in Honduras, the Islas de la Bahia-Guanaja Marine National Park, the Cayos Cochinos Marine Archipelago Natural Monument, and the Cuero and Salado Wildlife Refuge; in Nicaragua, the Chacocente Wildlife Refuge; in North America (Central America)-Costa Rica; the Guanacaste Conservation Area, the Ballena Marine National Park and the Golfo Dulce Responsible Fishing Area; and, in North America (Central America)-North America (Central America)-Panama; the Nargana Protected Area, in the Comarca de la Biosfera Guna-Yala, the Bastimentos Island Marine National Park, and Bocas del Toro

Governance for quality management in smallholder-based tropical food chains

Abstract The paper provides a framework that focuses on the linkages between several key dimensions of supply chain organization and performance of perishable tropical food products. The focus is on the relationship between governance regime and quality management. However, two other but related variables are taken into account because they impact on the relationship between governance and quality management. These variables are channel choice and value added distribution in the supply chain. Governance regime is reflecting how to enhance coordination and trust amongst supply chain partners and how to reduce transaction costs. Quality management is dealing with how to manage food technology processes such that required quality levels can be improved and variability in quality of natural products can be exploited. Governance regimes in relation to quality management practices are discussed to the extent that supply chain partners are able, or are enabled, to invest in required quality improve-ments. Reduction of transaction costs, creation of trust-based networks and proper trade-offs between direct and future gains may offer substantial contributions to effective quality management and enforcement. This framework has been applied to nine case studies on smallholder-based food supply chains originating from developing countries (Ruben et al., 2007). Three of these case studies are discussed in this paper to illustrate what challenges can be derived from the case studies. The selected case studies concern fish originating from Kenya, mango originating from Costa Rica and vegetables produced in China

Governance for quality management in smallholder-based tropical food chains

The paper provides a framework that focuses on the linkages between several key dimensions of supply chain organization and performance of perishable tropical food products. The focus is on the relationship between governance regime and quality management. However, two other but related variables are taken into account because they impact on the relationship between governance and quality management. These variables are channel choice and value added distribution in the supply chain. Governance regime is reflecting how to enhance coordination and trust amongst supply chain partners and how to reduce transaction costs. Quality management is dealing with how to manage food technology processes such that required quality levels can be improved and variability in quality of natural products can be exploited. Governance regimes in relation to quality management practices are discussed to the extent that supply chain partners are able, or are enabled, to invest in required quality improve¬ments. Reduction of transaction costs, creation of trust-based networks and proper trade-offs between direct and future gains may offer substantial contributions to effective quality management and enforcement. This framework has been applied to nine case studies on smallholder-based food supply chains originating from developing countries (Ruben et al., 2007). Three of these case studies are discussed in this paper to illustrate what challenges can be derived from the case studies. The selected case studies concern fish originating from Kenya, mango originating from Costa Rica and vegetables produced in China.Agribusiness, Agricultural and Food Policy,