bluuebunny/crossref_metadata_2025 huggingface dataset:
Evaluation of the Emergency Reconstruction Facility (ERF)
Authors:   Inter American Development Bank
Published: March 2024

The Bank's Executive Board approved the creation of the Emergency Reconstruction Facility (ERF) on November 11, 1998, along with Operational Policy Guidelines for addressing emergency situations arising from natural and unexpected disasters. The present evaluation (RE-264) is divided into three sections: 1) A background on the ERF in the context of both the growing frequency of natural disasters in Latin America and the Caribbean and the Bank's recent history of working with Borrowers to address the resulting challenges; 2) An evaluation of the loans with reference to the questions identified above; 3) Conclusions and recommendations with respect to the loans and the instrument of the ERF more broadly.
Evaluation of IDB Action in the Initiative for Integration of Regional Infrastructure in South America (IIRSA)
Authors:   Inter American Development Bank
Published: March 2024

The Initiative for Integration of Regional Infrastructure in South America (IIRSA) was launched to work toward an enlarged South American economic space anchored in principles of sustainable, efficient, equitable development of the region. This report (RE-338) presents the findings of OVE's evaluation of the Bank's IIRSA activity as a lever for furthering South American integration by scaling up and modernizing the continent's transportation, energy, and telecommunications infrastructure grids. This report examines the IIRSA intervention strategy against the backdrop of the South American integration movement and looks at progress made in each of the IIRSA agreed action areas and prospects for the final years of the Initiative's lifespan. Additionally, the report evaluates the Bank's actions and support for IIRSA and the main lessons of experience and discusses major challenges for IIRSA in the current South American integration dynamic.
Evaluation of the Bank's Processes for Managing Technical Cooperation
Authors:   Inter American Development Bank
Published: March 2024

This evaluation (RE-364) focuses on the functionality of processes utilized by the Bank to manage all of its non-reimbursable technical cooperation activities, funded by sources other than the administrative budget of the Bank - activities that are hereafter referred to as TC. This focus on the means, or processes utilized, rather than on the results is somewhat atypical of evaluations conducted by OVE. Yet, OVE's prior findings assessing specific groups TC point to a strong correlation between TC results and the capabilities of the process utilized to manage them. OVE formulates fiver recommendations. Recommendations 1 & 2 are aimed at strengthening TC quality and refocusing incentives. Recommendations 3, 4 & 5 seek to facilitate these improvements by redefining 31 organizational accountability for TC; as well as the management of TC financial and non-financial resource
Country Program Evaluation: Honduras (2007-2010)
Authors: Puerta Juan Manuel
Published: March 2024

This evaluation examines the IDB's Country Program with Honduras for the 2007-2010 period. This period was marked by a political crisis that halted operations with the country from June 2009 to March 2010. Honduras set out to achieve 120 development objectives in its work with the IDB during the period under evaluation. Despite its importance, in practice, these goals exceeded the country's delivery capacity as well as IDB's monitoring capacity. Although both Honduras and the IDB had identified 'reducing poverty and indigence' as the overarching development challenge, institutional shortcomings made it impossible to translate that shared objective into priorities and specific resource allocations. This was detrimental to the program's relevance. Efficiency was low as chronic shortcomings in management capacity translated into lengthy delivery times and high implementation costs. Limitations in the monitoring and evaluation system can be improved, since the effectiveness of the program could not be measured, as no causal relationship can be established between the country¿s progress and IDB's action. The recommendations aim at optimizing what is already a solid country-IDB relationship. To this end, the IDB should pursue opportunities to continue strengthening three key functions in its dealings with the country: (i) programming; (ii) execution; and (iii) monitoring and evaluation.
IDB-9: Independent Consultation and Investigation Mechanism (ICIM)
Authors: Elliott Victoria , Costas-Perez Elena , Truong Karl , Huppi Monika , Junho Pena Maria-Valeria , Partridge William L.
Published: March 2024

This evaluation of the IDB's Independent Consultation and Investigation Mechanism (ICIM, more commonly known by its Spanish acronym MICI) responds to two separate mandates. First, the policy establishing MICI stipulates that "two years after the effective date of the Mechanism, the Board shall request an independent evaluation of the mechanism." The Board requested that the Office of Evaluation and Oversight (OVE) undertake that evaluation. Second, in the context of the evaluation of IDB's Ninth Capital Increase (IDB-9), OVE was asked to review the implementation of the IDB-9 mandates. One of these mandates pertains to the establishment and effective implementation of MICI, including its staffing and the phasing in of all operational policies contemplated in the approved ICIM policy. The evaluation suggests a complete overhaul of the Mechanism to make it truly effective.
IDB-9: Human Resources Processes
Authors: Alonso Pablo , Schijman Agustina
Published: March 2024

This evaluation assesses the implementation of Inter-American Development Bank (IDB, or Bank) commitments related to the human resources (HR) policies set out in the 2007 realignment and IDB-9. Under these commitments, the Bank is required to continue improving its organizational efficiency and capacity, building on the organizational model set forth in the 2007 realignment. This report is a preliminary review of the topic; next year's evaluation of the realignment by the Office of Evaluation and Oversight will explore issues of efficiency and efficacy in greater depth. The evaluation finds that the IDB-9 results framework is insufficient to allow a full assessment of the "full and effective implementation" of the HR mandates. Nonetheless, it finds progress in the implementation of some of the commitments, such as the strengthening of capacity in country offices, the implementation of a results-based performance framework, the promotion of gender diversity, the improvement of talent management, and the reform of the process for contracting consultants. It is too soon to judge whether these reforms are yielding the expected results in terms of cost-effectiveness, client satisfaction, reduced time in project preparation and execution, improved project quality and evaluability, increased country knowledge and project origination, better technical dialogue with clients, increased employee motivation and performance, and better talent management.
IDB-9: Integrated Business Solution: Program Optima
Authors: Soldano Miguel
Published: March 2024

During 2008 and 2009, the Inter-American Development Bank (IDB, or Bank) assessed and documented shortcomings and constraints in its information technology (IT) capabilities, and in 2008 it created the IT Roadmap project (later Program Optima) to address these issues. As part of the IDB-9 Report, the Bank committed to the implementation of Program Optima to improve its efficiency in delivering services through IT. The program evolved over time, with its focus changing from information systems to business process reengineering. Also during 2010, the scope of the program was expanded to include areas that were originally left out of the program. Consequently, the budget assigned to the program increased from the original US$37 million to US$55.5 million. Program Optima suffered two major setbacks and changes in direction, the first in early 2009, when irregularities in the contracting of the consulting firm stopped the project for eight months; and the second in late 2010, when concerns were raised by senior Bank Management about the direction of the program. The team was moved to the Office of Strategic Planning and Development Effectiveness and a new Manager was hired, a process that again delayed the work for about eight months. Since the end of 2011 a new Optima team has been in charge of the program. The Bank has not yet implemented the necessary changes on its internal processes and IT systems to fulfill the requirements set out in the IDB-9 Report. However, the new Optima team has put in place the necessary mechanisms to make this program work, and it is now moving forward at a steady pace.
Economic Instruments for Water Management in Latin America and the Caribbean: Issue Briefing
Authors: Russell Clifford S.
Published: March 2024

The central issue of the II Meeting of the Environment Network of the Regional Policy Dialogue, held on February 25 and 26, 2003, is "the application of economic instruments in water and solid waste management" . This Meeting has, on the water side, been informed by descriptions and analyses of a variety of approaches, including examples from a number of European countries (Kraemer, et al.), a longer study of the French water management system (Feres, et al.), and two Latin American country case studies, Brazil (Seroa da Motta and Feres) and Mexico (Saade Hazin and Saade Hazin). Each study provides a wealth of detail, set against a background of instrument typologies and commentary on instruments based on the extensive economic literature examining their advantages and disadvantages.
The Country Studies Initiative and its Effect on the Bank's Knowledge Strategy
Authors: Sedlacek Guilherme Luis
Published: March 2024

The Inter-American Development Bank has recognized that increasing the effectiveness of its analytical work is key to enhancing its development impact. In this context, in 2006, the Board approved the "Initiative to support country studies and improve and expand Bank loan operations" (document GN-2381-3). The Country Studies Committee (CEP) was created to manage the Initiative's resources and to discuss thematic priorities and propose work methodologies that will help identify synergies and maximize the use and impact of these resources. The main objective of this evaluation is to examine the results obtained by the implementation of the Country Studies Initiative in the period 2006-2008 and inspect whether the results influenced the way analytical work is produced and utilized within the Bank.
Towards Good Governance of Public-Private Alliance Councils Supporting Industrial Policies in Latin America
Authors: Devlin Robert
Published: March 2024

Systematic application of industrial policies has reemerged in Latin America after a hiatus during the era of the Washington Consensus. These industrial policies are broadly different from the past. One of the characteristics of the region's new industrial policies is the use of public-private alliance councils (PPAs) to help guide their development and implementation. The deployment of public-private dialogue and related problem solving is considered an essential component of modern industrial policies. However, to be effective councils must be well governed. This paper approaches the issue of governance of PPAs with an overview of their rationale and framework, and then draws from the experience of several OECD countries, most of which have long experience working with councils, to illustrate how they operate and gain insights on good governance for Latin America alliances. The paper examines the intangible dimensions of governance, as well as tangibles involving the structure and procedures of councils.
Approach Paper: Review of Bank Support to Agriculture in Latin America and the Caribbean, 2002-2013
Authors: Rose Jonathan , Schijman Agustina , Conroy Hector , Molina Adriana , Quijano Ursula
Published: March 2024

The objective of the evaluation will be to assess the relevance, implementation, and effectiveness of the Bank's support to agricultural development in the region since 2002, with a particular emphasis on projects that aim to increase productivity, competitiveness, and incomes for farmers. To evaluate project implementation and effectiveness, OVE will focus primarily on a set of representative projects; and to evaluate relevance it will use country case studies. Findings will seek to identify factors that affect the success of various types of interventions in different contexts and to provide recommendations on how the Bank can enhance its support for the sector.
Second Independent Evaluation of the Japanese Trust Funds at the IDB
Authors: Ramírez Rodríguez Santiago , Churanek Danya , Pielemeier Katherine , Vásquez Jordán Darinka , Azuara Herrera Oliver , Soriano Alejandro
Published: March 2024

This evaluation was conducted by IDB's Independent Office of Evaluation and Oversight (OVE) at the request of the Japan Executive Director's Office at the IDB, on behalf of the Government of Japan (GoJ). The purpose of the evaluation was to assess the results obtained with JTF financing and to point out any potential improvement in the future use of those funds. The findings were also expected to highlight topics related to the visibility of Japan's contributions and collaboration with Japanese agencies. The review covered the entire JTF portfolio of country and regional NRTCs completed between January 2006 and December 2012 - a total of 265 projects with US$96.7 million in disbursements from the JTF. These operations financed programs in 25 of the 26 countries of Latin America and the Caribbean via loan preparation grants (LPGs) or stand-alone grants (SAGs) in practically all areas of IDB's work. The majority of these projects were approved between 2005 and 2009.
Climate Change at the IDB: Building Resilience and Reducing Emissions
Authors: Marto Ricardo , Gonzalez Diez Verónica M. , Suarez David , Corrales Maria Elena , Linares Ana María , Diewald Christoph , Schneider Robert , Redwood John , Uquillas Jorge , Molina Adriana , Scholl Lynn , Puerta Juan Manuel , Christensen Jens Hesselbjerg , Verner Dorte , Lisansky Judith , Celse L'Hoste Margareth , Quintanilla Oscar , Ashwill Maximillian , Mendieta Umaña Maria Paula , Morales Carlos , Alvarez Prado Lourdes
Published: March 2024

Climate change (CC) poses important risks to development in Latin America and the Caribbean (LAC). Climate adaptation can limit the negative impacts and is important in achieving sustainable development and equity, including poverty reduction and economic growth. Integrating climate change mitigation into development work is also an opportunity to foster and support the design and implementation of sustainable projects, programs and policies. Low-carbon alternatives contribute to more sustainable development. LAC countries are increasingly incorporating CC in their national policy agendas and aim to reduce GHG emissions and build climate resilience and the IDB has supported these efforts in the Region. In 2013-2014, the Office of Evaluation and Oversight (OVE) carried out an evaluation of IDB's support for CC mitigation and adaptation (RE-459-1). This is OVE's first evaluation of IDB's interventions and institutional set-up related to climate change. The evaluation seeks to document and to draw lessons from the recent IDB experience related to climate change (2004-2014). It focuses on IDB-financed operations in important climate-related sectors (agriculture and natural resources, energy, disaster risk management, and transport)that directly support climate resilience-building (adaptation) or GHG emissions reduction (mitigation) or that have these outcomes as co-benefits.
Country Program Evaluation: El Salvador (2009-2014)
Authors: Suarez David , Szwedzki Roni , Bouillon César P. , González Ángela , Crespo Anna Risi Vianna , Scholl Lynn , Puerta Juan Manuel , Quintanilla Oscar , Di Tata Juan Carlos
Published: March 2024

This country program evaluation (CPE) was conducted during the preparation of a new country strategy with El Salvador for the 2015-2019 period. The evaluation therefore includes the findings from the strategy in effect from 2010 to 2014 (document GN-2575). According to the country program evaluations protocol (document RE-348-3), the main goal of the CPE is "to provide information on Bank performance at the country level that is credible and useful, and that enables the incorporation of lessons and recommendations that can be used to improve the development effectiveness of the Bank's overall strategy and program of country assistance."Accordingly, this CPE aims to analyze the Bank's relationship with the country, from an independent and holistic viewpoint, assessing in particular the program's relevance, efficiency, effectiveness, and sustainability, including both financial and nonfinancial products offered by the Bank during the period under analysis. This is the third independent evaluation of the country program carried out by OVE. The first (document RE-307) covered the 1992-2004 period, which was characterized by rapid economic growth in the wake of the Chapultepec Peace Accords. The second OVE evaluation (document RE-360) covered the 2004-2008 period; it was marked by the limited results of the ambitious reform program embarked upon in the late 1990s, as well as the political polarization that affected the Bank's program with the country. As part of this evaluation, the team visited El Salvador on two occasions and interviewed 120 people, including the Governor of the Bank, the Minister of Finance, the Chairman of the Central Reserve Bank of El Salvador, and other top government and central bank officials. The mission also met with representatives of academia and the private sector. Lastly, the team interviewed all the staff at the Bank's Country Office, including the Representative, the chief of operations, sector specialists, fiduciary specialists, and operations analysts. This evaluation is accompanied by sector annexes on the economy and public finances, the social protection, transportation, water and sanitation, housing and urban development sectors, and a general portfolio analysis annex.
Second Independent Evaluation of the Expanded Project Supervision Report Exercise
Authors: Aquino Sixto , Pires Jose Claudio Linhares
Published: March 2024

This report evaluates the second exercise of the Expanded Project Supervision Reports (XPSR), prepared by the Structured and Corporate Finance Department (SCF) for a sampling of 14 projects --13 loans and one guarantee. All projects were approved between 2000 and 2003, and they were selected based on the Evaluation Cooperation Group's Guidelines, which determine that all projects that achieved early operational maturity should be self-evaluated by SCF annually. While the guarantee covered regulatory risks of a distribution company, the loans financed energy, telecommunication, and transportation and sanitation projects in a context of implementing regulatory models aimed at attracting the private sector. The sampling gathers projects in seven countries and one regional project. This report presents the main findings and conclusions from the evaluation exercise.
Evaluation of PROCIDADES
Authors: Martin Lucia , Crespo Anna Risi Vianna , Puerta Juan Manuel
Published: March 2024

This report presents the findings of the independent assessment of PROCIDADES a facility for financing integrated urban interventions by lending directly to Brazilian municipalities. As the Inter-American Development Bank (IDB, or the Bank) moves forward with its strategy of strengthening its engagement with subnational governments, especially among high- and middle-income countries, the PROCIDADES example becomes more relevant.
Toolkit for the Identification, Measurement, Monitoring, and Risk Management of Contingent Sovereign Liabilities
Authors: Demaestri Edgardo C. , Moskovits Cynthia
Published: March 2024

Sovereign contingent liabilities materialize when uncertain future events, which are largely beyond the State's control, occur. They can represent a significant burden for public finances and jeopardize public debt management and sustainability. This paper presents a toolkit for the identification and systematization, measurement, monitoring, and reporting of these liabilities. Based on the proposal of a general methodology, the toolkit develops specific estimation methodologies for different categories of sovereign contingent liabilities. These methodologies are then applied in hypothetical exercises, complemented with illustrations taken from the international context. Furthermore, to illustrate how the toolkit might be applied, the paper provides examples that test sensitivity to changes in the variables andparameters that affect contingent liabilities. The study demonstrates that the toolkit can help to achieve improved and better-informed management of public debt and sovereign contingent liabilities, as well as of their associated financial and fiscal risks.
Approach Paper: Country Program Evaluation: Trinidad and Tobago 2011-2015
Authors: Hernández María José , Fryer Michelle , Vargas María José , Linares Ana María , Fajgenbaum Jose , Maciel Odette , Molina Adriana , Scholl Lynn , Pires Jose Claudio Linhares , Stone Leslie F. , Fevre Chloe
Published: March 2024

As part of its 2015-16 work plan, the Office of Evaluation and Oversight (OVE) is preparing the evaluation of the Inter-American Development Bank's (IDB) country program with Trinidad and Tobago for the period January 2011-December 2015. This paper sets out the proposed approach and methodology for the planned Country Program Evaluation (CPE), OVE's third for the country.
Index of Governance and Public Policy in Disaster Risk Management (iGOPP): Application Protocol
Authors: Esquivel Maricarmen , Hori Tsuneki , Lacambra Ayuso Sergio , Torres Ana María , Salazar Lina , Durán Rolando , Cardona Omar D. , Suarez Ginés , Rogers Cassandra , Narváez Lizardo , Visconti Ernesto
Published: March 2024

The protocol describes in detail the necessary steps for the measurement of indicators, including the information to be compiled, the assessment process, recommendations and examples based on the application conducted, as well as on the experiences of other countries in the Region. Additionally, the protocol contains some hypothetical examples with situations that could be found in the countries and suggestions on options to collect information in different contexts. Also, in order to adapt its methodology and indicator assessment process, this protocol is sensitive to those legal/constitutional differences that lead to models with various degrees of federalism and centralism.
Do Conditional Cash Transfers Lead to Better Secondary Schools?: Evidence from Jamaica's PATH
Authors: Stampini Marco , Martinez-Cordova Sofia , Insfran Sebastian , Harris Donna Oretha
Published: March 2024

We explored the hypothesis that the Programme of Advancement through Health and Education (PATH), Jamaica's conditional cash transfer program, contributes to breaking the inter-generational poverty cycle by placing its urban beneficiaries on a higher educational trajectory. Using a regression discontinuity design, we found that PATH urban male beneficiaries who sat the Grade Six Achievement Test (GSAT) over the period 2010-2014 performed better on the test (scoring 16.03 points, or 3.6%, higher than non-beneficiaries); consequently, they were placed in better secondary schools (1.5 percentiles higher in a national school ranking based on placed students' GSAT scores). In contrast, we found no significant impact for urban girls.
Intermittent Supply in the Context of Efforts to Improve Piped Drinking Water Supply in Latin America and the Caribbean: Lessons from a Case Study in Arraiján, Panama
Authors: Erickson John , Nelson Kara L.
Published: March 2024

A case study was conducted in the intermittent drinking water distribution system in Arraiján, Panamá, a rapidly growing peri-urban area west of Panama City. Pressure, flow, turbidity and chlorine were monitored continuously in four study zones with a variety of supply conditions. Water quality grab samples were collected from the continuous monitoringstations and household taps, and analyzed for turbidity, chlorine, and indicator bacteria. In addition, 3 years of pipe repair records were analyzed to estimate break rates in different areas of the distribution system.
Comparative Study of Equity Investing in Development Finance Institutions
Authors: Michelitsch Roland , Soriano Alejandro , Cuestas Ernesto , Funes Aguilera Rocio , Churanek Danya , Sadeghi Patricia , Glen Jack
Published: March 2024

The Board of Executive Directors of the Inter-American Investment Corporation (IIC) requested that the Office of Evaluation and Oversight (OVE) produce this technical study to inform IIC's future equity business. The core content of this study is a comparative benchmarking of equity strategies, results and processes of selected DFIs and other comparators. The study focuses on practical strategic, organizational and operational issues of use to IIC.
Country Program Evaluation: Haiti 2011-2015
Authors: Michelitsch Roland , Crespo Anna Risi Vianna , Vargas Felipe , Gonzalez Diez Verónica M. , Biau Julie , Jansson Maya , Huppi Monika , Khadr Ali , Alcántara Rafael , Cabrera Maria , Corrales Maria Elena , Celse L'Hoste Margareth
Published: March 2024

The country strategy with Haiti for the 2011-2015 period is the Inter-American Development Bank's (IDB) first post-earthquake strategy and coincides with the start of the mandate of the Ninth General Increase in the Resources of the IDB (IDB-9). The IDB-9 commitments for Haiti include debt forgiveness and expanding the IDB Grant Facility with a view to providing Haiti with US$200 million per year over a period of 10 years (2011-2020), subject to annual approval by the Governors. The IDB-9 commitments modified the Bank's relationship with Haiti by converting the Bank's entire portfolio to a grant portfolio. Adjustment to the IDB-9 requirements also included to create in the Vice Presidency for Countries (VPC) a Haiti Department (CDH), to ensure the efficient and effective management of the unprecedented amount of resources allocated by IDB-9 (document AB-2764) to the Haiti program. The Haiti Country Program Evaluation (CPE) for the 2011-2015 period covers the first five years of the IDB-9 mandate and the change in the Bank's strategic positioning in Haiti. The CPE is an opportunity to evaluate the Bank's post-earthquake actions with a view to identifying the main challenges that the Bank faces to position itself in the five remaining years of the IDB-9 mandate. The CPE is divided into five chapters. Chapter I analyzes the changes in the economic, political, and social context in which the country strategy was implemented, with particular emphasis on the structural limitations that affect Haiti's development. Chapter II analyzes the Bank's positioning, with an emphasis on the significance of the strategic commitment and the efficiency of implementation of the operational program. Chapter III focuses on an effectiveness analysis and an analysis of the main outcomes at a sector level. Chapter IV sets out the main conclusions and recommendations for the next strategy cycle. The CPE also includes sector annexes that describe the sectoral context in which the program was implemented and a detailed evaluation of IDB operations in each sector, as well as other annexes with additional information.
Las evaluaciones de programas públicos de apoyo al fomento y desarrollo de la tecnología y la innovación en el sector productivo en América Latina: Una revisión crítica
Authors: López Andrés
Published: March 2024

El estudio contenido en estas páginas pasa revista con perspectiva comparativa a 13 de evaluaciones de fondos de innovación, para extraer generalizaciones y lecciones aprendidas. El balance de la discusión ofrece razones para el optimismo: los fondos de innovación empresarial cuentan, consistentemente, con tasas costo-beneficio y valores presentes netos positivos, lo que sugiere que tienen validez como instrumento de política. Los principales temores en la aplicación de los fondos, en particular la posibilidad de que desplacen inversión privada, no parecen materializarse en la práctica.
External Capital Structures and Oil Price Volatility
Authors: Warnock Francis E. , Burger John D. , Rebucci Alessandro , Cacdac Warnock Veronica
Published: March 2024

This paper assesses the extent to which a countrys external capital structure can aid in mitigating the macroeconomic impact of oil price shocks. Two Caribbean economies highly vulnerable to oil price shocks are considered: an oil importer (Jamaica) and an oil exporter (Trinidad and Tobago). From a risk-sharing perspective, a desirable external capital structure is one that, through international capital gains and losses, helps offset responses of the current account balance to external shocks. It is found that both countries could alter their international portfolio to provide a better buffer against such shocks.
Swimming Against the Tide: Strategies for Improving Equity in Health
Authors: Hecht Robert , Birdsall Nancy
Published: March 2024

The evidence shows that government spending for health in many developing countries benefits the well-to-do more than the poor. However, a combination of favorable political forces and sound public policies can shift the focus of government expenditures toward the poor. Doing this is an essential part of any effective poverty reduction program in developing countries.
Government Reform in Italy: The Case of the Italian Government Reform: Models, Approaches, and Human Resources Management Tools
Authors: Pintus Elisa
Published: March 2024

The purpose of this paper is to examine how Italy is innovating and changing its public administration. It will focus on the reforms that are currently being implemented in Italy, with specific reference to the Government modernization model.
The Migrant Workers in Japan from Latin America and Asia: Causes and Consequences
Authors: Goto Junichi
Published: March 2024

The world has been increasingly interconnected both economically and politically ever since the end of the World War II. In addition to the increase in the movement of goods (international trade) and the movement of money (foreign investment), we have observed increased amount of movement of labor (international migration) in various parts of the world. For example, European countries, notably Germany and France, have accepted a large number of migrant workers from neighboring countries for many years. In the United States, huge number of migrant workers, both legal and illegal, have been flowing from various countries in Latin America and the Caribbean. While Japan had been a fairly closed country to foreigners for many years, the influx of migrant workers emerged in the mid-1980s when an economic boom brought about serious labor shortage created an economic boom. Initially, most of these foreign workers are illegal migrant workers from neighboring Asian countries. However, since the revision of the Japanese immigration law in 1990, there has been a dramatic influx of the Latin American of Japanese origin (Nikkei) because these people are now allowed to do whatever activities in Japan, including an unskilled work that is prohibited to foreigners in principle. The number of these Latin American migrants is estimated to be around 150,000 to 200,000. This paper analyzes the recent experiences in the economic and social impact of international migration from Latin America and Asia in Japan.
Elections and the Timing of Devaluations
Authors: Stein Ernesto H. , Streb Jorge M.
Published: March 2024

This paper presents a rational political budget cycle model for an open economy, in which devaluations are delayed in the pre-election period so as to increase the electoral chances of the party in office. By concentrating on closed economies, previous political cycle models had overlooked the influence of elections on the behavior of exchange rates. Voter uncertainty is introduced in two different dimensions. Not only are voters uncertain regarding the competency of the incumbent, but they also ignore the degree to which the incumbent is opportunistic.
Creditor Rights and the Credit Market: Where Do We Stand?
Authors: Galindo Arturo
Published: March 2024

This paper reviews empirical evidence on the impact of creditor rights regulations on credit market breadth and the credit cycle. It confirms results that were questioned regarding the impact of creditor rights regulations on the size of credit markets, and shows that the degree to which creditors are protected has a significant impact on the potential size of credit crunches.Simulations suggest that the average credit to GDP ratio for Latin America could be doubled if creditor rights regulations were put in place and law enforcement increased to developing country levels.
Should State-Owned Firms Change CEOs before Privatization?: The Case of the Telecommunications Industry
Authors: Chong Alberto E. , Galdo Virgilio
Published: March 2024

Should state-owned enterprises change chief executive officer before privatizing? We test competing views on this question by complementing a recently released database with newly collected data. We are able to cover 77 telecommunications privatizations, which account for nearly 80 percent of the sector in terms of value. We find that CEO replacement will improve performance in the telecommunications industry before privatization as measured by penetration, operating efficiency, and profitability. CEO change before privatization does appear to have real consequences in firm performance before privatization. Moreover, findings are consistent with previous research that links CEO replacement and an increase in privatization prices
Corporate Governance and Private Capital Flows to Latin America
Authors: Micco Alejandro , Chong Alberto E. , Panizza Ugo , Izquierdo Alejandro
Published: March 2024

According to recent research, external factors and political governance considerations are key determinants of capital flows in Latin America. We postulate that corporate governance is a crucial determinant as well. We show that while the region is characterized by relatively low levels of corporate governance it shows highly volatile capital flows. The high level of economic volatility that characterizes the region is partly due to the behavior of capital flows which, in turn, are influenced by external factors. The paper shows that by implementing better corporate governance the region could reduce the sensitivity of capital flows to external shocks and hence reduce the volatility of its economy.
Analysis of Several Productive Development Policies in Uruguay
Authors: Barrios Juan José , Michelin Gustavo , Gandelman Néstor
Published: March 2024

This paper reviews and assesses some of the Productive Development Policies currently being implemented in Uruguay. Three horizontal and three vertical policies are considered in light of the market and public failures they attempt to address and minimize. Horizontal policies comprise Innovation, Industrial Promotion and Directives for Industrial and Technological Development. Vertical policies include the analysis of Forestry Law, Meat Traceability and the Sustainable Production Project in the agricultural sector.
Who's Afraid of Foreign Aid?: The Donors' Perspective
Authors: Chong Alberto E. , Gradstein Mark
Published: March 2024

Since efforts by industrial countries to increase the amount of foreign aid they provide have been on the rise recently, it is important to understand the determinants involved. This paper examines the factors affecting support for foreign aid among voters in donor countries. The theoretical model, which considers an endogenous determination of official and private aid flows, suggests that government efficiency is an important factor in this regard, and also ties individual income to aid support through the elasticity of substitution. An empirical analysis of individual attitudes, based on the World Values Surveys, reveals that two factors are positively related to an individual's willingness to support foreign aid: satisfaction with own government performance and individual relative income. Furthermore, when using donor country data, we find that aid is negatively tied to inequality, corruption and taxes. These results are quite consistent with the analytical framework.
Money Laundering and its Regulation
Authors: Chong Alberto E. , López-de-Silanes Florencio
Published: March 2024

The recent wave of terrorist attacks has increased the attention paid to money laundering activities. Using several methodologies, this paper investigates empirically the determinants of money laundering and its regulation in over 80 countries by assembling a cross-country dataset on proxies for money laundering and the prevalence of feeding activities. The paper additionally constructs specific money laundering regulation indices based on available information on laws and their mechanisms of enforcement and measures their impact on money laundering proxies. The paper finds that tougher money laundering regulations, particularly those that criminalize feeding activities and improve disclosure, are linked to lower levels of money laundering across countries; the results are robust to potential endogeneity of money laundering regulation. The relevance of historical factors in explaining the variation of money laundering regulation across countries sheds light on theories of institutions and provides room for further action, particularly in the areas of the law that improve the impact of criminalization, including liability of intermediaries, reductions of the burden of proof and better disclosure.
Multilateral Intermediation of Foreign Aid: What is the Trade-Off for Donor Countries?
Authors: Powell Andrew , Bobba Matteo
Published: March 2024

Why would bilateral donors intermediate aid through a multilateral and not extend aid directly? This paper suggests a trade-off: multiple bilateral donors for each recipient may imply coordination and strategic problems but intermediating through a multilateral may dilute individual donor objectives. The paper conducts traditional panel and truly bilateral regressions with bilateral-pair, fixed effects to model aid allocation decisions. The results confirm that politics is important for bilateral donors but also that aid fragmentation and strategic behavior affect aid allocation. Multilaterals solve strategic and coordination problems between donors and, while politics remains significant, there is some evidence for a dilution of this effect.
The Missing Point in CAFTA
Authors: Reyes José Antonio
Published: March 2024

Ports are a crucial element in any Free Trade Agreement because of their role in moving goods. Unfortunately, the port situation in Central America was not considered during Free Trade Agreement negotiations with the United States (CAFTA). Although CAFTA is intended to provide benefits for exporters and importers, these benefits will not be fully realized due to the regions high port costs. These high costs, along with concerns regarding infrastructure, security, efficiency, and productivity, can diminish CAFTAs potential benefits. Central America must therefore enact legal reforms to privatize port operations, as the private sector possesses the resources necessary to invest in those ports and make them competitive.
Is the World Flat?: Or Do Countries Still Matter?
Authors: Chong Alberto E. , Gradstein Mark
Published: March 2024

This paper revisits the effects of a country`s institutional framework on individual firms` behavior, in particular focusing on their propensity to comply with legal rules. The theoretical model presented here suggests that these effects may be of paramount significance contrary to the recently popularized paradigm arguing that differences across countries have ceased to matter much. This paper`s empirical strategy consists of explaining the variation in measures of non-compliance with legal rules and employs a rich dataset based on thousands of firms from dozens of countries. We find that most of the variation emanates from country-wide differences in institutional quality, although some firm characteristics play a role as well. Our conclusion is that countries still matter in providing institutional infrastructure, which determines to a large extent the context within which firms operate.
The Conflictive Relationship between Satisfaction and Income
Authors: Lora Eduardo , Chaparro Juan Camilo
Published: March 2024

Using the 2006 Gallup World Survey of life satisfaction in 130 countries, this paper finds a very solid relationship between satisfaction and income (both across and within countries) and uncovers the unhappy growth paradox, whereby faster growth rates are accompanied by lower levels of satisfaction. The losses of satisfaction associated with growth are more pronounced in the material domains of life and are greater in richer and more urban societies. At the individual level, although higher incomes tend to be reflected in greater satisfaction, an increase in the income of the social group to which an individual belongs has the opposite effect. The conflictive relationship between satisfaction and income has implications for political economy and may help explain various characteristics of economic and social populism.
Political Institutions, State Capabilities and Public Policy: International Evidence
Authors: Stein Ernesto H. , Tommasi Mariano , Scartascini Carlos
Published: March 2024

This paper introduces preliminary evidence from a cross-country database of policy characteristics and potential uses of that database. While most databases have emphasized either the content of policies (e.g., size of government deficits) or countries formal institutions (e.g., political regime, electoral system), the variables in this database reflect the policymaking capabilities of different polities. The paper attempts to explain these policy characteristics as depending on the workings of political institutions, using a logic emphasizing intertemporal political compromise. The paper also contrasts this logic with alternatives such as the veto players approach. The paper concludes by suggesting the use of these policy characteristics or state capabilities as explanatory variables for the effectiveness of public spending in various social areas.
Misallocation and Productivity in Colombia's Manufacturing Industries
Authors: Conover Emily , Camacho Adriana
Published: March 2024

Following Hsieh and Klenow (2009), this paper studies productivity dispersions in Colombian industrial establishments using the Colombian Annual Manufacturing Survey (AMS) from 1982 to 1998. The United States is used as a benchmark to estimate the reallocation of capital and labor to equalize marginal products across plants in Colombia. Gains are found in manufacturing Total Factor Productivity (TFP) of approximately 3-8 percent and TPF is positively correlated with exporting status, age, size, and location in the central region of the country. There is also suggestive evidence that opening the economy in 1991 is associated with an increase in plant productivity levels for firms that export goods. The 1990 reform that reduced dismissal costs is associated with an increase in productivity, while the reform that increased labor costs in 1993 is associated with a decrease in plants productivity. Further work is needed to establish a causal relation between productivity and policy changes.
Political Institutions, Policymaking, and Economic Policy in Latin America
Authors: Ardanaz Martín , Tommasi Mariano , Scartascini Carlos
Published: March 2024

This paper surveys selected themes in the political economy of policymaking in Latin America, with an emphasis on recent research focusing on actual decision and implementation processes, and on the political institutions and state and social actors involved in those processes. In particular, the paper addresses how political rules work for or against intertemporal cooperation among political actors. The document shows that the extent to which polities obtain the key policy features that seem to determine development depends on the workings of political institutions, which define how the policymaking game is played, on the characteristics of the arenas of interaction, which define where the policymaking game is played, and on certain characteristics of key socioeconomic groups, which define who interacts with professional politicians in pursuing different policy preferences.
Evolution of Gender Gaps in Latin America at the Turn of the Twentieth Century: An Addendum to "New Century, Old Disparities"
Authors: Ñopo Hugo R. , Hoyos Alejandro
Published: March 2024

This paper complements the findings of Atal, Ñopo and Winder (2009) on gender and ethnic wage gaps for 18 Latin American countries circa 2005 by analyzing gender wage gaps for the same countries between circa 1992 and circa 2007. During this span the overall gender earnings gaps dropped about 7 percentage points, while the unexplained component dropped between 3 and 4 percentage points, depending on the control variables used. The gap declined most notably among workers at the bottom of the earnings distribution, with children at home, the self-employed, part-time workers and those in rural areasthe segments of the labor market that were previously reported as having the highest unexplained gender disparities. Most of the reduction in unexplained gaps occurred within segments rather than due to the composition of labor markets. The paper additionally finds a limited role for job tenure in explaining gender wage gaps.
Issues in Estimating Benefits with Non-Market Methods
Authors: McConnell Kenneth E.
Published: March 2024

This paper reviews modern techniques for estimating the benefits of goods which are not bought and sold in markets, paying special attention to the kinds of empirical studies that applied economists have faced in analyzing recent projects. The methods which are described and evaluated include Contingent Valuation, Hedonics, Travel Cost, and Random Utility Models.
Inequality, Democracy, and Persistence: Is There a Political Kuznets Curve?
Authors: Chong Alberto E.
Published: March 2024

The aim of this paper is to provide comprehensive empirical evidence on recent theories that link democracy and income inequality for the period 1960-1995. In simple cross-country regressions I find a non-monotonic link between these two variables when using ordinary least squares, instrumental variables, and Eusufzai tests. Since these results cannot be taken as "true" time series findings, even though recent theories that explain such a link are, I also employ recent methods applied to dynamic models on panel data. These techniques allow accounting for potential simultaneity and heterogeneity problems. Using the preferred econometric methodology, I also find support for the existence of a political Kuznets curve. Moreover, it appears that income inequality is unconditionally persistent. Results hold for two different democracy proxies and when sensitivity analysis is applied.
Exchange Rate Policy and Inflation Targeting in Colombia
Authors: Vargas H. Hernando
Published: March 2024

This paper examines Colombia's experience with an inflation-targeting monetary policy following the abandonment of exchange rate bands in 1999, and two episodes in 2003 and 2004 that deviated from this general behavior. In these episodes, the Central Bank intervened in the forex market on a relatively large scale in order to affect the trend of the exchange rate (managed floating). These episodes are examined to draw lessons and highlight the main challenges facing monetary and forex policy. The rationale for central bank intervention in the forex market in Colombia is then critically discussed. Finally, the paper presents several issues that appear in the debate on Colombian monetary and forex policy and provides an idea of the political context in which monetary policy decisions are made.