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The aim of this paper is: first, to show that the relationship between Latin America and the International Monetary Fund (IMF) is a faithful reflection of a class struggle on a world scale, where the correlation of internal and external forces has been articulated over the years in favor of capital; second, to analyze the concrete possibilities that the region will face in the future if it intends to reverse this unfavorable history. The paper argues that the IMF has played a key role in the reconfiguration and extension of the dominance of international finance capital over the productive resources of Latin America by favoring the consolidation of a local capitalist class subordinated to the designs and power of transnational capital. [ABSTRACT FROM AUTHOR]

Financialization refers to the process by which financial markets, actors, instruments, and institutions gain importance in the functioning of economies and where the surplus generated is directed towards financial accumulation, which displaces productive accumulation (Epstein, 2005). However, this process is heterogeneous among regions and countries, and occurs in the periphery in the form of "subordinate financialization", since the dynamics of global accumulation condition its asymmetric and dependent insertion. This paper aims to examine a set of central aspects of the process of subordinate financialization of Latin American countries, which is manifested in the loss of sovereign monetary spaces, and which are linked to the process of dollarization of banking systems, the degree of indebtedness, and the internationalization of wealth. [ABSTRACT FROM AUTHOR]

This paper first analyzes the performance of Latin America during the long economic cycle that took place between 1998 and 2014, which combined the regional effects of the Asian crisis with a growth phase driven by a supercycle of commodity prices. However, the expansionary phase was followed by a five-year period of economic stagnation, during which previous achievements were weakened, even before the covid-19 crisis erupted, with its negative consequences. This confirms the persistence of the region's economic vulnerability to external shocks, as well as the difficulties in maintaining sustained growth rates associated with processes of structural change, which make it possible to reduce the gap in the development levels vis-à-vis the leading countries and face the challenges of environmental sustainability. It is also pointed out that, despite the important achievements in terms of social development during the recent growth cycle, the high structural inequalities that characterize the region were not broken. [ABSTRACT FROM AUTHOR]

This paper analyzes the different trends that will determine the future of work in Latin America; it reviews the hypothesis that places the impact of technological change at the center of the explanation of changes in the future of work. We discuss the studies on the potential impact of these technological transformations on the labor world, in terms of employment levels, the quality of work, as well as the aspect of control and labor discipline. Also, other important trends that could over-determine the labor market are analyzed. [ABSTRACT FROM AUTHOR]

Discrimination in the labor market is an important issue in most countries of the world. In such a context, this paper uses nationally representative data from the 1990-2017 National Socio-Economic Characterization Survey to explore the gender wage gap and discrimination in Chile. Different versions of the well-known decomposition of Blinder and Oaxaca are applied to measure the wage gap and to decompose its possible causes and the variables involved. Finally, wage estimates are corrected for selection bias, and decomposition by income quantum is studied. The results of the different methodologies show a decrease in wage discrimination when we look at the full 1990-2017 period, but the decrease was mainly in the 1990-2003 period, and then has remained relatively constant until 2017. Wage discrimination reached 49.7% in 2017, where 45.2% corresponded to women's subpayments and 4.5% to men's overpayments, a structure that is maintained throughout the period studied. On the other hand, it shows that estimating uncorrected wage discrimination due to selection bias underestimates the wage discrimination suffered by women in Chile. Finally, it proves that a large part of wage discrimination occurs mainly in the extremes of lower and higher income distribution. This work also adds evidence to the fact that women who are active in the labor market have more years of education than men, but for reasons that classical theory cannot explain, they obtain a lower wage. [ABSTRACT FROM AUTHOR]

This paper studies the evolution of skill premia and its relationship with the productive structure in 16 countries in Latin America, using microdata from household surveys and information from national accounts for the 1991-2015 period. The evidence suggests that the change in the productive structure is significantly correlated to the dynamics of wage inequality. In particular, when the share in total value added of sectors that are more intensive in high-skilled labor grows, the skill premia increases significantly. [ABSTRACT FROM AUTHOR]

The frustration in Latin America with neoliberal economic reforms has reawakened a number of debates, especially about inequality (Palma, 2019a) and productivity growth --in 2018, the region's average productivity was just 8% higher than in 1980, equivalent to an annual average growth rate of just 0.2%--. Meanwhile, in the previous cycle, from 1950 to 1980, productivity levels more than doubled, with an annual growth rate of 2.8%. One of these debates is related to the problem of deindustrialization --in particular, the question of whether it is "premature" or if it includes a component of "Dutch disease"--. This paper analyses the role of manufacturing in economic growth, and shows the dynamics of that deindustrialization in high-income as well as middle-income countries. It concludes that the success of emerging Asia is rooted in its ideological pragmatism, which led it in the 1980s and early 1990s to use reforms as a mechanism for strengthening and accelerating their already ambitious processes of industrialization --not for carrying out a "non-creative destruction" of their manufacturing, as happened in almost all of Latin America--. This in spite of the fact that many of the industrialization processes in emerging Asia suffered, in its time, from similar problems to those experienced by Latin American industrialization, if not worse. [ABSTRACT FROM AUTHOR]

This paper analyzes central banks' role in banking crises in Latin America. It finds that, except in a handful of cases, where bank resolution was timely executed, central bank money was used in large scale to contain and manage systemic and small crises alike. However, pouring money into the financial system tended to fuel macroeconomic unrest and increased the chances of currency crises, in particular in emerging market countries. While subject to some caveats, the conclusions of this paper are relevant and should be taken by developing countries as a warning against excessively expanding central banks' balance sheets to cope with financial crises, as several industrial countries have done it recently. [ABSTRACT FROM AUTHOR]

The international financial crisis of 2008-09 exposed the strengths and weaknesses of the current paradigm of development in Latina America, a paradigm based on liberalized capital accounts and significantly improved macroeconomic conditions. This paper presents lessons derived from the crisis, not only for the region it self, but also for other developing countries that might seek economic growth in the context of greater integration to the international capital markets. Some of the lessons are not new but have been reinforced by the crisis, such as Latin America's imperative need for export diversification (not only in products but in partners). Other lessons break with longstanding myths about the region, such as its inability to undertake counter-cyclical policies -at least on the monetary side. Yet other lessons reflect new developments in the current growth paradigm, such as a renewed assessment of (1) the relative roles of foreign and domestic banks in shielding the financial system against external shocks and (2) the potential costs of adopting blanket international financial regulations that do not account for a country's degree of development. Taken together, the lessons in this paper bring a new sense of optimism for growth in Latin America. [ABSTRACT FROM AUTHOR]

Latin America has been dominated by growth expansions that, more often than not, have ended in crises and protracted periods of stagnation. This has led to poor growth performance during most of the past century. This paper reviews Latin American growth experiences and discusses some particular areas that help to explain why sustainable growth has been so elusive in the region. In particular, it discusses the role of openness and intraregional trade, the role of institutions, macroeconomic stability and inequality, all factors that are central to resume and maintain growth. The paper also discusses more general issues related to growth, such as the importance of protecting property rights and having an adequate structure of rewards to effort, which includes equal opportunities. Finally, a brief overview on current macroeconomic developments is presented. [ABSTRACT FROM AUTHOR]

Background: Following Kaldor (1978) and Thirlwall (1979), McCombie (1985) advanced a foreign trade super-multiplier that positively influences other components of aggregate demand of a Balance-of-Payments constrained economy. In this paper, it is shown that net capital stock also exerts a super-multiplier effect, which, contrary to the exports multiplier, happens to be independent from the income elasticity of the demand for imports. Methods: A theoretical model is here presented where given the exports and net capital stock levels, the income level is adjusted to get trade balance equilibrium. We carried out econometric estimations using a fixed effect model and unbalanced panel data to compute the elasticities of both GDP and production for the do-mestic market vis-à-vis exports and the net capital stock. Our estimations are based on data from six Latin American countries for the period 1951-2015 and the sub-periods prior and after economic liberalization. Results: The elasticities of both GDP and production for the domestic market vis-àvis the net capital stock proved to be higher than the said elasticities with respect to exports. Conclusions: Capital accumulation can positively affect the trade balance through economic capacity building and import substitution. Capital accumulation imparts a super-multiplier effect; as Hicks (1950) had pointed out, it makes space for aggregate demand to increase regardless the value of the income elasticity of the demand for imports. McCombie's foreign trade super-multiplier is valid if and only if the income elasticity of total absorption of goods and services is lower than one. Yet, if such elasticity happens to be higher than one, an increase in exports will call for a reduction of the aggregate demand components other than exports so as to preserve the Balance of Payments dynamic equilibrium. [ABSTRACT FROM AUTHOR]

Background: Using standard fiscal incidence analysis and the new methodological developments by the Commitment to Equity (CEQ) Institute, this paper estimates the impact of fiscal policy on inequality and poverty in sixteen countries in Latin America around 2010. Methods: With information on incomes, consumption, and other dimensions available in household surveys, and knowledge about the characteristics of the fiscal system, the CEQ method consists in allocating to each individual the burden of personal income and consumption taxes, and the benefits from cash transfers, consumption subsidies, and government spending on education and health. This process yields the pre-fiscal and post-fiscal income concepts of interest. These income concepts, in turn, are used to calculate the corresponding indicators of inequality and poverty. Thus, one can estimate, for each country, the impact of the fiscal system and each of its components on inequality and poverty. Since the methodology that was applied is the same, results are comparable across countries. Results: The countries that redistribute the most are Argentina, Brazil, Costa Rica, and Uruguay. Guatemala, Honduras, and Peru are the countries that redistribute the least. Fiscal policy reduces extreme (income) poverty in twelve out of the sixteen countries. The incidence of poverty after taxes, subsidies, and cash transfers, however, is higher than market income poverty in Bolivia, Guatemala, Honduras, and Nicaragua, even though fiscal policy reduces inequality in these four countries. Contributory pensions have a heterogeneous effect on inequality and, contrary to some expectations, their impact is equalizing in nine of the countries. In the sixteen countries, spending on pre-school and primary education is equalizing and pro-poor (per capita benefits decline with income per capita). Spending on secondary education is always equalizing; it is also pro-poor in some of the countries. Spending on tertiary education is never pro-poor but it is equalizing in all the countries except for Guatemala. Spending on health is always equalizing but pro-poor only in some countries. Conclusions: Latin America presents a great deal of heterogeneity in the size of the state and the countries' capacity to use their fiscal power to reduce inequality and poverty. A higher share of social spending (to GDP) is associated with a larger redistributive effect but countries with similar, or even lower, shares of social spending show heterogeneous redistributive effects implying that other factors beyond size such as the composition and targeting of social spending (and taxes) are at play. It is important to emphasize that a higher redistributive effect is not necessarily a desirable outcome since in this article there is no estimation of the impact of redistributive policy on fiscal sustainability and efficiency. In some countries, the burden of consumption taxes is such that a portion of the poor are net payers into the fiscal system (before receiving "in kind" transfers in education and health). Governments should examine whether this undesirable effect could be avoided, or at least reduced, through an expansion of targeted cash transfers and/or reduction in the consumption taxes that are particularly burdensome for the poor. [ABSTRACT FROM AUTHOR]

Background: This paper presents new evidence of the inequality possibility frontier and the inequality extraction ratio (the percentage of total inequality that was extracted by global elites) of Latin America (LA) in the last two decades. Moreover, we explore the relevance of the inequality extraction ratio (IER) in the analysis of social conflict, institutional instability and corruption. Methods: Estimation of IER and Gini index for 18 Latin American countries in the period 1990-2013, using household surveys. Estimation of multivariate econometric models with fixed effects to analyze the relationship between income distribution and indicators of social conflict. Results: AL improves two positions in the ranking of global inequality using the IER instead of Gini index. Within Latin America there is a process of convergence in levels of inequality, but the two measures evolve differently: while the Gini index increases in the 90s and decreases in the 2000s, the IER decreases throughout the entire period. In addition, we found a positive association between IER and social conflict. Conclusions: Using the IER, LA is not as unequal as with the Gini index. Moreover, countries in LA with high rates of IER are more likely to have high levels of social conflict. [ABSTRACT FROM AUTHOR]

This paper provides evidence about the public employment in Latin America during the period 1992-2012, exploiting a standardized database of household surveys from all the countries of the region. These surveys constitute a useful tool because of their national representativeness, their frequency, and their wide coverage about employment and wage issues, both in the public sector as in the private, formal and informal. The article documents and analyzes the changes in the employment and wage levels of Latin-American public employees vis-à-vis the rest of workers. [ABSTRACT FROM AUTHOR]

This paper examines the behavior of real GDP (levels and growth rates), unemployment, inflation, bank credit, and real estate prices in a twenty one-year window surrounding selected adverse global and country-specific shocks or events. The episodes include the 1929 stock market crash, the 1973 oil shock, the 2007 U.s. subprime collapse and fifteen severe post-World War II financial crises. The focus is not on the immediate antecedents and aftermath of these events but on longer horizons that compare decades rather than years. While evidence of lost decades, as in the depression of the 1930s, 1980s Latin America and 1990s Japan are not ubiquitous, GDP growth and housing prices are significantly lower and unemployment higher in the ten-year window following the crisis when compared to the decade that preceded it. Inflation is lower after 1929 and in the post-financial crisis decade episodes but notoriously higher after the oil shock. We present evidence that the decade of relative prosperity prior to the fall was importantly fueled by an expansion in credit and rising leverage that spans about 10 years; it is followed by a lengthy period of retrenchment that most often only begins after the crisis and lasts almost as long as the credit surge. [ABSTRACT FROM AUTHOR]

This article examines the role that regulated Micro Finance Organizations (MFO) have played in the Bolivian financial sector development. Using occasional references, the paper also acknowledges the contribution of non-regulated MFO in improving welfare of poor population sectors. Among policy lessons, the results suggest that microfinance is important in developing financial deepening in similar countries, such as those in the region. [ABSTRACT FROM AUTHOR]