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Decent Work and Economic Growth
Styles of development in Latin America
The discussion of styles of development has been complicated by the improper use of this and other associated terms. In order to avoid misunderstandings this article starts by examining the concepts of system and structure and on this basis goes on to define a style of development as “the way in which human and material resources are organized and assigned within a particular system with the object of solving such questions as what goods and services to produce; how; and for whom”. More specifically it notes two sets of features of such styles: (a) those which make up the structural basis of the production apparatus especially the sectoral structure of the product and employment the various technological strata and the predominant type of external relationship and (b) the dynamic elements of the system which are revealed by analysing the level and composition of demand and its underlying basic factors namely the level and distribution of income. These two sets of features are closely linked by a circle of mutual cause and effect.
Growth and concentration among the leading business groups in Mexico
This article discusses various hypotheses relating to the origin and operation of business groups in Mexico and it proposes a model to explain the sources of their total asset growth. It highlights their growing contribution to Mexican gdp but notes that their shares of employment and profits are smaller. Over time sales and assets have clearly tended to become more concentrated in the largest groups. The paper concludes that the main financing sources for asset growth between 2005 and 2007 were firstly debt and secondly capital contributions from shareholders. It also finds that the leading groups invest discretely over time and tend to “overinvest” to block the entry of other competitors.
Meeting on a new Latin America in a changing world economy
The essays reproduced below were presented at a small informal and high-level conference on the theme of “A New Latin America in a Changing World Economy” held at the Belmont Conference Center near Washington D.C. on 25-26 June 1979.
The economics of climate change in Latin America and the Caribbean: Stylized facts
Notes on integration
It is argued in these notes that a number of factors together with the current problems in the world economy tend to make integration appear less important than it really is and to reduce its chances of success so that a clear interpretation and evaluation — not as yet available — is called for.
Interpretative summary
Latin America stands at the treshold of the 1980s as the most highly industrialized region in the Third World. Because of concern in industrial countries over the increasing competitive capacity of some developing countries in the production and export of manufactures Latin America’s essential thrust is often perceived by those outside the region as based on its new industrial capability.
Latin America and the international monetary system: some comments and suggestions
In this paper I intend to emphasize aspects of the present system of international economic relations in the monetary and financial area that create difficulties for an adequate insertion of Latin America in the world economy. I do not propose to make a comprehensive study of all transfers of resources between developed and developing countries.
Fiscal policy in times of crisis: macroeconomic effects of the primary surplus
Trade unions in the “South” in the era of globalization
This article examines the effects of globalization on the trade union movement in developing countries (the “South”). It concludes first that globalization has been asymmetrical: much further-reaching for trade in goods than for capital flows weak for technology transfer and very limited in migratory flows. Second it examines the role and economic repercussions of labour unions. It finds that contrary to the orthodox view these have little negative impact on employment but do significantly reduce wage inequalities. In view of the shift in the South since the 1980s away from development strategies based on import substitution aimed at domestic markets and towards export-oriented strategies the final section proposes new tasks and priorities for unions that are more consistent with this strategic reorientation both at the national and international levels as well as within firms.
From national to local economic development: theoretical issues
External sector liberalization, financial development and income in South Asia
The paper provides an analysis on the impact of external sector openness and financial sector development on per capita income in the South Asian economies of Bangladesh Bhutan India Nepal Pakistan and Sri Lanka. For the annual series from 1980 to 2015 the instrumental variable model using a generalized method of moments (GMM) approach is estimated. The results show that liberalizing the external sector raises per capita income conditional on the level of financial sector development. The large-economy influence analysis shows that India will benefit the most from external sector liberalization and other economies involved in this study still need to focus on financial sector development as opposed to on liberalizing capital flows. It further indicates that premature external liberalization in small and poor economies tends to be beneficial to the large neighbouring economy which in this case is India leading to resource exploitation. Accordingly unless financial markets and institutions are strong enough to effectively deal with domestic resource mobilization opening up the external sector alone may impede the economic development process.
The major unresolved issues in the negotiations on the UNCTAD Code of Conduct for the transfer of technology
Ten years after the appearance on the international agenda of the issue of technology transfer a consensus seems to be emerging among the parties concerned —both technology suppliers and technology importers— that:
The impact of foreign direct investment on income inequality: a panel Autogressive Distributed Lag approach for the Asia-Pacific Economic Cooperation developing economies
In the present paper the effect of foreign direct investment (FDI) inflows on income inequality in Asia-Pacific Economic Cooperation (APEC) economies is investigated by using annual data for the period 1990–2015. The variables used are the Gini coefficient FDI inflows gross domestic product (GDP) per capita trade openness and human capital. Also panel Autoregressive Distributed Lag (ARDL) and panel heterogeneous non-causality tests are used in this study. The panel ARDL results suggest that in the long run FDI inflows decrease income inequality. This supports the argument that encouraging FDI inflows does not harm the distribution of income in APEC economies. The results also confirm that GDP per capita and trade openness help reduce income inequality while human capital widens income inequality. The results from this study suggest that APEC authorities could implement sound policies to attract more FDI as evidence indicates that those inflows would narrow income inequality in APEC economies.
The export of manufactures
The development of the manufacturing sector has an important role to play in Latin America in relation to a long list of economic variables all of which aim at changing the economic characteristics of the region in aspects such as the diversification of production Structure of employment and production growth of income and the average wage and attenuation of the fluctuations in prices and export earnings as will be seen in the following pages. Hence all measures tending to develop and consolidate this sector whether through import substitution or exports of manufactures merit special attention in the economic policy of the Latin American countries and the developing countries in general.
International economic reform and income distribution
Latin America on the threshold of the 1980s
With the end of the 1970s at hand by way of drawing up a general balance the author sketches the main features of Latin American development in the recent past and notes the main challenges which the region will have to face in the years to come. He begins by recognizing that since the war and especially during the 1960s and the beginning of the present decade Latin America achieved vigorous economic growth but he stresses that this did not succeed in solving some of the most serious social problems while it also brought with it a growing internationalization of the economies of the region with a consequent increase in their external vulnerability. Furthermore towards the middle of the 1970s there was a reversal of the expansive cycle as a result of the flagging performance of the central economies the changes in the international prices of some goods especially oil and the internal difficulties faced by the national development patterns themselves.
Mortgage loans and access to housing for low-income households in Latin America
On the basis of a study on mortgage loan options available in eight Latin American countries this article identifies two pending tasks for most of the countries: the need to make long-term funds available to mitigate the risk of a mismatch of maturities and rates and the need to harmonize profitability criteria for lenders with the criterion of access to credit for the low-income population. The paper recommends the creation of linkages between the housing finance market and the capital market through secondary mortgage markets for which the housing finance market must use instruments other than subsidies. In addition the paper proposes a number of options to ensure that the State helps to create mortgage markets that will provide the low-income population with better access to housing.
The relations between different levels of government in Argentina
This article deals with the fiscal and financial relations between the national government and the provincial governments in Argentina during the last 15 years identifying the factors which help to explain the high degree of conflictivity of those relations. In view of the institutional roots of the conflict a historical review is made in order to place the recent problems and future discussion in a long-term context. First of all the development of federalism in Argentina and the evolution of the various forms of autonomy of the provinces is examined followed in the central section of the document by a review of the options that have dominated the changes in the functions and incomes of the different levels of government in recent decades. Those options have to do not only with the distribution of taxes but also with the process of decentralization and the changes in functions among levels of government.
Public-debt management: The Brazilian experience
This paper analyses public-debt management in Brazil and considers the main recent theoretical models and the possible effect that the strategy adopted by the Treasury from 1999 onwards could have on the base interest rate. The findings show that the public-debt-management strategy adopted by Brazil was based on the recommendations of Calvo and Guidotti (1990). The average maturity of public debt the proportion of shares linked to the Special System of Clearance and Custody (SELIC) and the public-debt-to-GDP ratio all play a significant role in determining the base interest rate. Government efforts to restructure public-debt maturities and reduce the negative effect on the interest rate are key in this regard.
Less advanced sectors in the Latin American fertility transition
Demographic change in Latin America has been driven by the behaviour of the middle and upper strata. Given that fertility and mortality in these groups are now relatively low. future changes will mainly come from the behaviour of less advanced sectors. This paper analyses the contribution of these less advanced groups to the decline in fertility distinguishing between the “distribution effect” and the “rates effect’. In less advanced sectors the desired number of children is lower than the actual number with early marriage and limited use of modern contraceptives continuing to be the rule. Even so these groups have entered the demographic transition. A number of countries have recently seen falls in their fertility rates due to the contribution of women with low levels of education: in the late transition countries behaviour is heterogeneous while in the advanced transition countries the greatest contribution is being made by women with primary education.