William Maloney
Published: 2024-04-10
Total Pages: 84
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Latin America and the Caribbean (LAC) has made slow but consistent progress addressing the imbalances induced by the pandemic in an international environment that is just now showing signs of stabilizing. Despite favorable macroeconomic management, high interest rates and fiscal imbalances remain challenging while growth rates remain lackluster due to long-standing structural issues. Looking forward, an aging workforce and rising violence will increasingly complicate policy. This report focuses particularly on weak competitive forces as a source of low productivity, low growth, and low welfare in LAC. It emphasizes the need for effective competition institutions, pro-competition regulatory frameworks, complementary policies to improve the capabilities of workers and firms, and enhanced innovation systems, to prepare local industries to reach the technological frontier and face global competition. Furthermore, the report underscores the need for reforms to prevent large businesses from exerting undue political influence over policy decisions.