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While formal institutions are considered rather stable in Western countries, the same cannot be said of those in Latin America and the Caribbean (LAC). In LAC, these institutions are superseded by nonformalized but deeply embedded practices—especially of political favoritism. Accordingly, this paper explores how members of parliament in LAC favor their birth regions by providing clientelistic goods and services to their constituents. The paper shows that the development of subnational regions is affected by their proximity to parliament leaders' birthplaces. We collect data on 366 political leaders' birth locations over 1992–2016 and construct a panel of approximately 183,000 subnational micro–regions across 45 LAC countries/autonomous territories. Our results show that incumbent parliament leaders favor regions near their birthplaces, as measured by night light emissions and World Bank aid. This favoritism is enabled by the patterns of formal institutional weakness, and de jure plus de facto influence given to the parliament by the particularly unstable constitutions of LAC countries. • In LAC, institutions are often overshadowed by non–formalized but deeply embedded corrupt practices such as favoritism. • This study shows how the development of subnational regions is affected by their proximity to parliament leaders' birthplaces. • It comprises approximately 183,000 subnational micro–regions across 45 LAC countries/autonomous territories. • Data was collected on 366 political leaders' birth locations over the years 1992–2016. • Leaders of parliament in LAC favor their birth regions by providing clientelistic goods and services to their constituents. • Not just presidents but also parliament leaders engage in regional favoritism. [ABSTRACT FROM AUTHOR]

Summary What accounts for variation in human development levels across similar communities? Why, for example, have some equally poor, indigenous, highland communities in Guatemala made advances in health and education while others have stagnated or regressed? This paper argues that, contrary to an emerging recognition of the role of “ordinary citizens” in peacebuilding or crime reduction, human development requires the complementarity of non-state leaders and government resources. Results are demonstrated through a quantitative analysis of all of Guatemala’s 334 municipalities, combined with a qualitative analysis, including over 250 key informant interviews and focus group participants from four paired communities throughout the Western Highlands, which effectively traces the implementation of a widely acclaimed government anti-hunger program. This paper underscores the variability in local governance present across short distances in Guatemala, with dramatic influence on local development outcomes. In most communities, the role of traditional leaders and other non-state actors is increasingly crowded out by political conflicts exacerbated by growing, and shifting political party and religious affiliations. In these instances, development governance has broken down and development resources are distributed along locally derived lines of patronage versus need. Elsewhere, however, where state actors have identified and incorporated the legitimacy, informal authority, and networks of traditional leaders at the village level, the implementation of the anti-hunger program is visibly more effective. The role of local, informal leaders is pivotal in legitimizing the program, mobilizing citizen participation, and overseeing more equitable distribution of key resources. The paper concludes with an exploration of what explains variation in the quality of local governance across space and its implications for development practice. [ABSTRACT FROM AUTHOR]

Summary: This paper assesses the importance of agriculture poverty reduction, largely through its impact on overall economic growth, drawing on evidence from Latin America and other developing regions. The econometric evidence strongly suggests that the sector contributes to growth more than its share of GDP, certainly in Latin America but also elsewhere. Cross-country studies show that, on average in the developing world, agriculture tends to have an impact on both national growth and poverty reduction that is greater than its simple share of national GDP. The results reinforce the argument against taxing agriculture relative to other sectors and that in assigning government expenditures to public goods one should take into account the historical relationship between agricultural growth and the subsequent non-agricultural growth. The paper also considers approaches to stimulate the rural economy. [ABSTRACT FROM AUTHOR]

Summary Linkage to dynamic markets is a key factor in understanding why different rural territories in Latin America perform differently. This paper combines two conceptual frameworks (from the new economic geography and economic sociology) for an in-depth analysis of the mechanisms that operate in this linkage and to identify key factors that allow for inclusive economic development. This analysis considers three rural territories that exemplify market linkages frequently observed in Latin America, where, although high transaction costs and limited access to financial capital prevail, other types of capital (social, cultural, and human capital) available to rural dwellers can be mobilized. [ABSTRACT FROM AUTHOR]

Summary This article is the introduction to a volume containing findings from a program conducted over five years in 11 Latin America countries, to answer three questions: (1) Are there rural territories that have experienced simultaneous economic growth, poverty reduction, and improved distribution of income?; (2) What factors determine these territorial dynamics?, and; (3) What can be done to stimulate and promote this kind of territorial dynamics? The article outlines the analytical and policy issues and the methodology, summarizes the remaining 10 papers in the collection, and presents a conceptual framework that itself is one of the results of the program. [ABSTRACT FROM AUTHOR]