By Nancy Birdsall, Carol L. Graham, Richard H. Sabot
Latin American source of revenue distribution is without doubt one of the such a lot unequal on the earth. either the negative and the rich have paid a cost for this inequality, that is partly accountable for the region's low development premiums. The essays during this e-book suggest new methods of decreasing inequality, now not by means of growth-inhibiting transfers and rules, yet by way of improving potency and getting rid of intake subsidies for the rich, expanding the productiveness of the bad, and moving to a extra labour and skill-demanding progress direction. In "Beyond Tradeoffs", Latin American specialists display how market-friendly measures in key coverage components can at the same time advertise larger fairness and larger potency. by means of settling on win-win suggestions, the authors problem the traditional knowledge that there's constantly a tradeoff among those pursuits. huge macroeconomic reforms within the zone have supplied possibilities to enforce such innovations throughout many sectors. the amount goals at construction a "Latin consensus" on a moment around of reform - reforms that handle the pressing factor of inequality with out undermining effective development. individuals comprise Jonathan Coles, Rene Cortazar, Ricardo Hausmann, and Joseph Stiglitz. Nancy Birdsall is government vice chairman of the Inter-American improvement financial institution. Carol Graham is a senior fellow in international coverage reviews and codirector of the guts on Social and financial Dynamics on the Brookings establishment. Richard H. Sabot is the toilet J. Gibson Professor of Economics at Williams university in Massachusetts.
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Additional resources for Beyond tradeoffs: market reforms and equitable growth in Latin America
The rapid growth of the population and labor Page 4 force in the first half of the twentieth century in the region was not met with comparable growth of opportunities for education. This made unskilled labor much more abundant relative to land, capital, and skilled labor. The absence of opportunities for productive employment outside agriculture was further complicated by highly concentrated ownership of land. In the post-war period, the growth of employment opportunities in the region was constrained by industrialization strategies based on import substitution.
Carter and Jonathan Coles 7. Economic Policy and Labor Market Dynamics 183 René Cortázar, Nora Lustig, and Richard H. Sabot 8. Equity Benefits from Financial Market Reforms 213 Liliana Rojas-Suárez and Steven R. Weisbrod 9. Pension Reform: An Efficiency-Equity Tradeoff? 253 Estelle James 10. Reforming Public Monopolies: Water Supply 273 Raquel Alfaro, Ralph Bradburd, and John Briscoe 11. Inequality and Growth: Implications for Public Finance and Lessons from Experience in the United States 305 Joseph Stiglitz 12.
At the local political level, far-reaching changes have occurred, and are being reinforced by fiscal decentralization. A decade ago, this would have been difficult to imagine. Now Latin America is charting new territory as a region in which almost all countries are implementing extensive economic reform under democratic auspices. The spread of democracy has positive implications for economic reform; at the same time, the implementation of reforms can also contribute to democracy. 23 The poor are in the majority in the region, and they vote.