By Pedro-Pablo Kuczynski, John Williamson
This quantity is a successor of varieties to an prior learn, towards Renewed monetary development in Latin the US (Institute for overseas Economics; 1986), which blazed the path for the market-oriented monetary reforms that have been followed in Latin the United States within the next years. It back offers the paintings of a bunch of top economists (*) who have been requested to consider the character of the commercial coverage time table that the area could be pursuing after the higher a part of a decade that was once punctuated via crises, completed disappointingly sluggish progress, and observed no development within the region's hugely skewed source of revenue distribution. It diagnoses the first-generation (liberalizing and stabilizing) reforms which are nonetheless missing, the complementary second-generation (institutional) reforms which are essential to give you the institutional infrastructure of a industry economic system with an egalitarian bias, and the hot tasks which are had to crisis-proof the economies of the quarter to finish its perpetual sequence of crises. (*) Pedro Pablo Kuczynski (Minister of Finance of Peru), Nancy Birdsall (President, heart for worldwide Development), Miguel Szekely (Mexico), Ricardo Lopez Murphy (Argentina), Jaime Saavedra (Peru), Claudio de Moura Castro (Brazil), Liliana Rojas-Suarez (Peru), Andres Velasco (Harvard), and Roberto Bouzas (Argentina).
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Extra info for After the Washington Consensus: Restarting Growth and Reform in Latin America
Whatever the composition of local revenues, without a strong local revenue base, decentralization cannot be a functioning reality. The organization of the relationship between the center and the states and municipalities in Latin America spans a wide variety of systems. com 02--CH. 2--33-48 3/13/03 3:44 PM Page 47 expenditures—although the federal government intervenes, sometimes decisively (Giugale and Webb 2000, 3). From there on, a combination of federal and central systems prevail. Some countries have a large number of municipalities and others not many—for instance, Peru has roughly 1,900 (with only 14,000 inhabitants per municipality), whereas Uruguay has only 19 (each with an average population of almost 170,000 in 1994).
Even in countries that benefited from higher rates of growth, growth alone failed to translate into proportionate reductions in poverty. Consider the following two examples from Attanasio and Székely (2001). 7 percent in real terms, a spectacular gain compared with the previous 16 years. However, poverty hardly declined. In fact, the incomes of the poorest 30 percent of the population contracted during this period. The huge increase in mean income was due entirely to income gains among the richest 30 percent—particularly the richest 10 percent—of the population (Székely 2001b).
However, poverty hardly declined. In fact, the incomes of the poorest 30 percent of the population contracted during this period. The huge increase in mean income was due entirely to income gains among the richest 30 percent—particularly the richest 10 percent—of the population (Székely 2001b). The second example is Chile. Between 1992 and 1996, Chilean GDP per capita expanded by more than 30 percent in real terms, and moderate poverty (head count ratio) declined by 20 percent. But income inequality increased (the Gini index rose 7 percentage points).