What Makes a Difference in Achieving Higher Labor Productivity?: The Case of Low-Income Countries in Latin America

This paper uses firm level surveys from Ecuador, Guatemala, Honduras and Nicaragua to estimate the determinants of labor productivity. This study started out with the hypothesis that the adverse external business conditions that firms in poor Latin American countries face, may be an important explication of the generally low levels of productivity. However, the empirical results, based on the survey of more than 1300 businesses, do not confirm this hypothesis. Compared to all the variables that are under the firms control, such as capital intensity, energy use, and worker skills, the external business environment (macroeconomic instability and labor regulations) has very little impact on productivity.Labor productivity, Ecuador, Guatemala, Honduras, Nicaragua

Pension Reform in Bolivia: A Review of Approach and Experience

The paper analyzes the Bolivian experience in switching from an old publicly managed pay-as-you-go pension system to a privately managed, fully funded pension system.Pension reform, Bolivia

Regional Integration and Poverty: A case study of Bolivia

This paper investigates the impacts of regional integration processes on poverty in Bolivia. It first demonstrates that regional integration has stimulated a diversion of trade away from traditional US and EU markets towards countries of MERCOSUR and the Andean Community. At the same time, the composition of exports has changed from predominantly minerals towards slightly more elaborated goods, such as vegetable fats, food and beverages. The paper presents econometric analyses of the impact of imports, exports and FDI (by sector, and trade block) on individual labor incomes and household poverty status. The results show that higher exports generally tend to benefit the workers who work in the exporting sectors. However, this result only holds for export sectors that exploit some natural resource rents (mining, hydrocarbons, modern agriculture), and not for those which rely purely on low wages in order to be competitive (most manufacturing sectors). Imports typically have a negative effect on worker salaries, except the imports of capital goods, which do not compete with local production. This implies that the change towards more regional trade of goods with a smaller natural resource rent component is unlikely to contribute to a reduction in poverty. For exports and FDI to be helpful for reducing poverty, they would have to focus on sectors, which are labor intensive and at the same time exploit some natural resource rents. Sectors that might fulfill these criteria are modern agriculture and tourism.Regional integration, poverty, Bolivia

El Efecto Redistributivo de los Impuestos y del Gasto Social Corriente en Bolivia

Este estudio busca respnder las siguintes interrogantes: ¿Quál es la magnitud y cómo se distribuyen los subsidios que se transfieren a los hogares a través de la provisioón pública de los servicios de educación y salud?; ¿Cuál es la magnitud y cómo se distribuyen los impues a los hogares?; ¿Cuál es el efecto individual de los subsidios e impuestos sobre la distribución de ingreso actual?; y ¿Quál es el impacto redistributivo combinado de los impuestos y los subsidios públicos a los hogares?.Gasto social, impuestos, distribución de ingresos, Bolivia

¿Qué hace la Diferencia para el Logro de una Mayor Productividad Laboral? Caso de los Países de Bajos Ingresos en América Latina

El presente estudio analiza la hipótesis según la cual, las condiciones empresariales externas adversas a las que deben hacer frente las compañías en los países pobres de América Latina, podrían constituir una importante explicación de los generalmente bajos niveles de productividad de estos países. Sin embargo, resultados empíricos basados en una encuesta realizada a más de 1300 empresas en Ecuador, Guatemala, Honduras y Nicaragua, no confirma esta hipótesis. Comparadas con todas las variables bajo el control de las empresas, como lo son la intensidad del capital, el uso de la energía, y la calificación de los empleados, las condiciones económicas externas (inestabilidad macroeconómica y regulaciones laborales) ejercen muy poco impacto sobre la productividad.Productividad laboral, Ecuador, Guatemala, Honduras, Nicaragua

Trade, FDI, Growth and Poverty in Bolivia

After several decades of “state-capitalism” characterized by import substitution policies, Bolivia implemented in 1985 a New Economic Policy (NEP) following neo-liberal ideas of free trade, privatization, and liberalization of capital flows. It was hoped that the opening up of the economy would attract foreign direct investment (FDI) which in turn would help modernize Bolivian industry, improve productivity, increase exports, stimulate growth, and reduce poverty. This paper investigates to what extent this actually happenedTrade, Foreign Direct Investment, Poverty, Inequality, Bolivia

Space and municipal development in Bolivia

This paper seeks to establish the factors related to the Human Development Index, incorporating the spatial dimension in the analysis of its determinants. The variables were classified into four groups: geographic, socio-economic, demographic and infrastructure and services. The results show that the geographic and demographic variables are important in the socio-economic development of municipalities. In relation to economic variables, only the variable rural economic organizations is significant, showing the importance of these institutions. Furthermore, contrary to expectations, the variable municipal social spending per capita is not significant, suggesting that central government spending is more important in achieving better health and education indicators, and finally, the process of decentralization has not been able to reach these levels. On the other hand, the spatial dimension is relevant in human development at the municipal level, showing that there is a process in which events in one location are more likely to predict similar events in neighboring geographical units. In this regard, plans or projects of the municipalities should be made jointly and not individually.Regional distribution; Municipal development; Spatial econometrics; Bolivia

La Dinámica del Sector de Castaña y su Impacto sobre el Mercado Laboral y la Pobreza en el Norte Amazónico de Bolivia

La dinámica económica y social del norte amazónico de Bolivia en gran medida fue configurada en la época del boom de la goma, casi 100 años atrás, desde entonces hasta hoy en día, las relaciones económico-sociales han variado muy poco. Luego del colapso de la industria de la goma al principio de los años 90, la castaña se convirtió en la principal fuente de generación de empleo y movimiento económico para la región. La pregunta básica sobre la que giró la investigación fue: ¿Puede la actividad exportadora de castaña influir positivamente en la generación de ingresos y la reducción de la pobreza en la región del norte amazónica?Desarrollo rural, Castaña, Bolivia

Geography and Development in Bolivia: Migration, Urban and Industrial Concentration, Welfare, and Convergence: 1950-1992

This paper argues that considering the impact of geographical variables within Bolivia makes feasible a considerably richer analysis. The picture that emergesis occasionally not entirely consistent with the international evidence, but nonethelesspoints toward a systematic and significant impact of geography on development.