World Bank Latin American and Caribbean Studies

With more than 70 percent of its population living in cities, Latin America and the Caribbean (LAC) is among the most urbanized regions in the world. Yet, although its cities are, on average, more productive than those elsewhere in the world, their productivity lags that of North American and Western European cities. Closing this gap provides LAC with the opportunity to raise living standards and join the ranks of the world's richest countries. Raising the Bar: Cities and Productivity in Latin America and the Caribbean is about the productivity of cities in LAC and the factors that help to explain its determination. Based on original empirical research, the report documents the high levels of population density and other features of LAC cities that mark them out from those in the rest of the world. The report also studies the role of three key factors – urban form, skills, and access to markets – in determining the productivity of LAC cities. It shows that while excessive congestion forces and inadequate metropolitan coordination seem to be stifling the benefits of agglomeration, LAC cities benefit from strong human capital externalities. It also finds that, within individual LAC countries, cities are poorly integrated with one another, which contributes to large differences in performance across cities and undermines their aggregate contribution to productivity at the national level.

Entrepreneurship is a fundamental driver of growth, development, and job creation. While Latin America and the Caribbean has a wealth of entrepreneurs, firms in the region, compared to those in other regions, are small in size and less likely to grow or innovate. Productivity growth has remained lackluster for decades, including during the recent commodity boom. Enhancing the creation of good jobs and accelerating productivity growth in the region will require dynamic entrepreneurs. Latin American Entrepreneurs: Many Firms but Little Innovation studies the landscape of entrepreneurship in Latin America and the Caribbean. Utilizing new datasets that cover issues such as firm creation, firm dynamics, export decisions, and the behavior of multinational corporations, the book synthesizes the results of a comprehensive analysis of the status, prospects, and challenges of entrepreneurship in the region. Useful tools and information are provided to help policy makers and practitioners identify policy areas governments can explore to enhance innovation and encourage high-growth, transformational entrepreneurship.

This report analyzes the patterns of economic transformation that have occurred in Latin American and the Caribbean. A productivity-enhancing reform agenda with a focus on the services sector is a must to reignite its growth process. The region also needs to train its workforce for jobs requiring analytical skills as well as interpersonal skills.

The world economy is not what it used to be twenty years ago. For most of the 20th century, the world economy was characterized by developed (North) countries acting as 'center' to a 'periphery' of developing (South) countries. However, the recent rise of developing economies suggests the need to go beyond this North-South dichotomy. This tectonic re-configuration of the global landscape has brought about significant changes to countries in the Latin America and Caribean (LAC) region. The time is ripe for an in-depth analysis of the dynamics and nature of LAC's external connections.This latest volume in the World Bank Latin American and Caribbean Studies series will focus on the implications of these trends for the economic development of LAC countries. In particular, trade, financial, macroeconomic, and sectoral shifts, as well as labor-market aspects will be systematically analyzed.

This book proposes a renewal of 'Open Regionalism' in Latin America and the Caribbean (LAC) aimed at achieving the region's goals of high growth with stability. The LAC region experienced a growth spurt with equity during the first decade of the 21st Century. It is well understood that an unsustainable demand boom fueled by terms-of-trade improvements drove this growth acceleration episode, especially in South America. Unfortunately, terms of trade are no longer fueling growth, and the region's policymakers are in search of new sources of growth with stability. With the experience of East Asia and the Pacific in mind, many policymakers in LAC are looking to international economic ties as a potential source of stable growth. The challenge highlighted in this book lies in designing an integration agenda comprising trade and factor market integration that is conducive to region-wide efficiency gains, which can help LAC enhance its global competitiveness. The forces of geography imply that pro-growth global integration cannot be achieved without building a strong neighborhood. Thus, this volume argues that LAC's regional economic integration agenda needs to go well beyond the current spaghetti bowl of preferential trading arrangements.

Policy makers in many countries in the Latin American and Caribbean region have found it challenging to determine how to treat natural resource commodity production and how to manage the recurrent cycles of booms and busts. 'Natural Resources in Latin America and the Caribbean: Beyond Booms and Busts?' addresses the major concerns associated with commodity dependence, summarizing the state of the art in existing literature and filling in the knowledge gaps with new analysis. The report finds that some commonly accepted negative effects of dependence on natural resources are largely myths, while some are realities. But the authors find that all the effects can be managed, and they provide practical advice on how to do so. Issues covered include long-term fiscal growth, fiscal volatility, institutional impacts, and environmental and social effects. The report analyzes the implications for the region's development and policies. 'Natural Resources in Latin America and the Caribbean: Beyond Booms and Busts?' will be of interest to policy makers, academics, and analysts, as well as others interested in the economics of commodity markets and their role in economic development.

This book, the companion volume to 'Low Carbon, High Growth: Latin American Responses to Climate Change', examines some of the major threats posed by climate change to the region's economies, societies, and biodiversity. It describes the patterns of greenhouse gas emissions in the Latin America and Caribbean region and in specific countries, finding that the future trajectory could be increases in emissions relative to other regions. 'Low-Carbon Development' explains why it is in the region's best interest to participate actively in global efforts to reduce emissions and what type of global climate change architecture could allow the countries to make their most effective contributions. Finally, the book lays out an agenda for domestic policies and investments to help the countries adapt to climate change while reducing their emissions profiles. It will be useful to policy makers, civil society organizations, and researchers working in climate change.