The Social Challenge of the New Economic Era in Latin America

Research and Development/Tech Change/Emerging Technologies,

Optiaml Resource Regime in Natural Resource Management: A revised economic theory of commons

The economic theory of natural resource management has its roots in the conventional economic theory of commons that overlooked the role of the institutional structures and the associated transaction costs. Hence, it has not been able to explain the outcomes of the cases of successful management of natural resources, such as forests, as common property. The possible economic optimality of community regimes has been recognised in the empirical literature, but it has not yet been incorporated in production models that would help to elucidate the reasons for its relatively superior performance in selected contexts. In this paper, we incorporate institutional structure into a static analysis of optimal resource management regimes which aims to correct this neglect. Resource regime is included as one variable input in natural resource production models that leads to determine global optimum resource regime. The other specific features of this paper are: i) a continuous array of possibilities varying from open access at one extreme to private regime at the other rather than just the two extreme options of state and private regimes; (ii) the socio-economic characteristics of the resource's "user group" as the main determinant of the relative efficiency of different regimes; and (iii) a specific mathematical form for the transaction function, in order to facilitate empirical studies in this area. Static models for general separable and non-separable transformation and transaction functions are discussed. The possibility of different resource regimes being optimal in different socio-economic conditions is highlighted.

When do Agricultural Exports Help the Rural Poor? A Political-Economy Approach

Agricultural exports have been touted by a number of economists as having important potential to alleviate rural poverty, and poverty more generally since much of it is rural, in developing countries. The logic of this view lies in the ideas that (a) many agricultural export products are relatively labour intensive in production and that in many countries the until-recently-prevailing import substitution strategies have penalized agriculture. Moving to a freer trade regime removes the implicit tax on the sector and should loose its growth potential with resulting benefits for workers and small holders. This view, plausible enough from one perspective, flies in the face of much historical evidence that as new agricultural exports become an option, peasant groups are pushed off the lands they previously operated so that large-scale farmers can dedicate it to export use. This process has yielded much conflict and violence, and rather than helping the rural poor has often made them worse off. Predicting whether agricultural exports will help the rural poor thus involves judging whether the reality in a given situation is closer to the first cited model or to the second one. At present fruit and vegetable exports offer hope of strong employment creation in a number of developing countries, though total trade figures suggest that these products cannot by themselves pull up the rural poor in larger developing countries.

Agrarian Reform, Land Distribution, and Small-Farm Policy as Preventive of Humanitarian Emergencies

No Abstract

Riding the Elephants: The Evolution of World Economic Growth and Income Distribution at the End of the Twentieth Century (1980-2000)

This paper presents estimates of world economic growth for 1970-2000, and changes in the intercountry and interpersonal distribution of world income between 1980 and 2000. These estimates suggest that, while the rate of growth of the world economy slowed in the 1980-2000 period, and average within-country inequality worsened, the distribution of world income among individuals, nevertheless, improved a little. However, that result was wholly due to the exceptional economic performances of China and India. Outside these two countries, the slowdown in world growth was even more dramatic, the distribution of world income unequivocally worsened, and poverty rates remained largely unchanged.world inequality trends; international income distribution, convergence, world poverty trends

All About the Giants: Probing the Influences on Growth and Income Inequality at the End of the 20th Century

This paper presents estimates of world output growth from 1970 to 2000, the distribution of income among countries and persons for the years 1980, 1990 and 2000, and world poverty rates for the same years. It also presents the results of a series of simulation exercises that attempt isolate the effect of particular country and regional experiences on world output growth and changes in global income inequality and poverty. The authors find that rapid growth in China (despite a downward adjustment of official growth estimates) had a powerful impact on the growth of world output in both the 1980s and 1990s, but that negative economic growth in Eastern Europe more than offset that effect in the 1990s. With respect to the distribution of income however, the equalizing effect of China’s rapid growth, despite the contradictory impact of increasing domestic inequality, was dominant through both the 1980s and 1990s. Only India’s influence remained substantial by comparison. Other identifiable events of the period, such as the economic contraction in Eastern Europe and continued economic decline in Africa had little statistical impact. Thus, when the combined influence of these two countries’ above-average growth rates is removed, the improving global distribution of income suggested by all statistical measures becomes one of sharply worsening inequality. The impact of these twocountries is similarly critical with respect to global poverty reduction.

Colombia's small and medium-size exporters and their support systems

The authors evaluate the role of dynamic small and medium-size manufacturing enterprises and entrepreneurs (SMEs) in Colombia's development. They also evaluate SME policy in Colombia, especially as it affects the country's export potential. The SME sector has received little attention from Colombia's policymakers despite its substantial weight in manufacturing, its importance as a seedbed for important future companies, and its demonstrated capacity to grow rapidly under favorable circumstances. After the recent shift to a more open economy, people are asking how the sector will fare under the more intense competition to come. Recent changes in Colombia reflect strong pressure from those outside the traditional elite - especially the somewhat marginalized class of SMEs - to play a greater role in the political process. The authors interviewed entrepreneurs from 124 SMEs - all of them exporters - in the garments, leather goods, and nonelectrical machinery sectors. Some had been exporting for many years; many had begun to do so only in the late 1980s. Firms typically employed up to several hundred workers but average size at start-up was small (a median of eight workers). The leather goods industry is mainly export-oriented; the other two sell mainly in the domestic market, although all but a few were exporting. Nearly three-quarters of entrepreneurs had some university training (90 percent in the machinery industry). Most exports were to nearby or easily accessible (same-language) countries. International marketing was handled mainly by the private sector, but the public sector and other nonfirm organizations play a facilitating role in that process, especially for very small firms and first-time exporters. Trade fairs have been especially useful to the leather goods and nonelectrical machinery industries. Collective support mechanisms - mainly industry associations, especially for smaller firms and the leather goods industry - have helped firms develop technological capabilities (in finishing and design, for example, workplace organization, the use of sophisticated equipment). Education and training - especially"learning by doing"- have helped improve productivity.Public Health Promotion,Small and Medium Size Enterprises,Microfinance,Small Scale Enterprise,Health Monitoring&Evaluation,Health Monitoring&Evaluation,Small Scale Enterprise,Private Participation in Infrastructure,Microfinance,Environmental Economics&Policies

Indonesia's small and medium-size exporters and their support systems

The authors survey a sample of 91 small or medium-size exporters of garments, rattan furniture, the two are reasonably equally mixed. About 75 percent of the entrepreneures in garments and rattan furniture, and carved wooden furniture (Jepara), and interview people in public and nonprofit agencies active about issues affecting small and medium-size enterprises (SMEs). Indonesia's garment industry is dominated by entrepreneurs of Chinese descent and the Jepara industry by pribumi (Indonesian Malays); in rattan furniture, the two are reasonably equally mixed. About 75 percent of the entrepreneures in garments and rattan furniture have some university education; less than half of those in the more traditional, skill-based Jepara industry do. In most of the firms, international marketing was handled exclusively through private channels, that is also how most firms acquired technological capability. But such channels appeared to be more readily accessible by larger firms, by educated entrepreneurs, and by non-pribumi who could take advantage of the extended-family network that connects ethnic Chinese in the region. Relying exclusively on private channels means running the risk that participation in export markets will be limited to a relatively narrow base of entrepreneurs. Pribumi and smaller firms relied heavily on collective marketing support provided with a"light touch"- for example, support for participation in trade fairs. The Ministry of Trade's international network of offices geared to providing information and facilitating transactions was of little use to the firms surveyed. Collective technology support also appeared to be somewhat more important for smaller, pribumi firms, although its impact was modest. Employing expatriates was a powerful mechanism for acquiring technological capability, especially in the rattan and garment sectors, although it was concentrated disproportionately among the non-pribumi entrepreneurs. Indonesia's collective institutions suffer from pervasive organizational weaknesses that limit their ability to help broaden the base of private entrepreneurship in small and medium-size firms. Public institutions generally lack the commitment, resources, and flexibility needed to provide quality support to SMEs, and the industry association often lack the professionalism and accountability needed to gain SMEs'confidence. But public support can be useful when it involves relatively simple services, such as support to organize local fairs, to facilitate participation in fairs abroad, or to use foreign private consultants.Microfinance,Small Scale Enterprise,Small and Medium Size Enterprises,Water and Industry,Public Health Promotion,Small Scale Enterprise,Private Participation in Infrastructure,Microfinance,Health Monitoring&Evaluation,Water and Industry

Desafíos laborales en América Latina después de dos décadas de reformas estructurales. Bolivia, Paraguay y Perú 1997-2008

El volumen reune diversos trabajos sobre los mercados laborales en los tres países durante la década comprendida entre 1997 y 2008. En los tres casos se hacen análisis globales de la situación laboral de cada país así como análisis particualres de las áreas rurales y las áreas urbanas. Lo que se encuentra es que los mercados laborales no se habrían tornado todo lo dinámico que se esperaba fueran después de las reformas estructurales. Sin embargo es importante mencionar que estas reformas tuvieron diferentes características y diferentes períodos de maduración.mercados laborales; reformas estructurales; Bolivia; Paarguay; Peru

The Role of the Small and Medium Enterprise Sector in Latin America and Similar Developing Economies

The current economic setting in most Latin American countries suggests that, if the small and medium enterprise (SME) sector does not perform well during the next couple of decades, overall economic performance will also be unsatisfactory, especially in the areas of employment creation and income distribution. No other major sector has the potential to generate a large amount of adequate-income jobs. Experience of other countries has proven that this sector can play a central contributing role, under proper conditions and with adequate support. Various types of evidence from the countries of the region suggest that considerable potential is present in their SME sectors. But both experience elsewhere, and economic logic, imply that a strong and coherent support system will be necessary if that potential is to be reasonably fulfilled. Such a system has been notoriously absent in most Latin American countries in the past. Countries which fail to rectify this lack may suffer serious social and economic consequences. The parallels between the economies of many Latin American countries and various others around the developing world (e.g. South Africa, Philippines), both in economic structure, recent growth performance and level of inequality, suggest that many of the conclusions applicable to Latin America are relevant elsewhere as well