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Modeling Public Policies in Latin America and the Caribbean

image of Modeling Public Policies in Latin America and the Caribbean

The Inter-American Development Bank (IDB) and the Economic Commission for Latin America and the Caribbean (ECLAC) have formed a partnership to promote a regional network of computable general equilibrium (CGE) modellers that facilitates the exchange of analytical findings, techniques and data, with the ultimate objective of better serving policymakers in policy formulation. The regional meetings of CGE modellers, held annually in a different country of the region, have been instrumental in promoting interregional transfer of analytical technologies and in bringing the region closer to international best practices. This book contains a selection of studies discussed in past annual regional meetings on modelling.

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Andean countries at a crossroads: Evaluating pro-poor trade integration options

The Andean countries are currently re-evaluating their trade integration strategies in the light of mounting social demands. The policy challenges thereby posed, which are now at the heart of the countries’ development agendas, date back to the early 1990s when the Andean countries began to liberalize their trade regimes and participate in regional integration schemes. While moving forward in the area of trade and integration, however, these countries, like others in Latin America, did not sufficiently examine the impact these policies would have on poverty, income inequality and social cohesion. In fact, despite significant economic growth resulting from trade in recent decades, the Andean countries are still grappling with persistent poverty and highly inequitable income distribution. Social benefits from integration policies have lagged relative to other Latin American countries (ECLAC, 2006). As a result, the challenge of maximizing the social benefits from trade and integration strategies now constitutes a major pillar of the countries’ development agendas.

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