Ms. Kimberly Beaton, Ms. Svetlana Cerovic, Misael Galdamez, Metodij Hadzi-Vaskov, Franz Loyola, Zsoka Koczan, Mr. Bogdan Lissovolik, Mr. Jan Kees Martijn, Ms. Yulia Ustyugova, and Joyce Wong
Outward migration has been an important phenomenon for countries in Latin American and the Caribbean (LAC), particularly those in Central America and the Caribbean. This paper examines recent trends in outward migration from and remittances to LAC, as well as their costs and benefits. For the home country, the negative impact from emigration on labor resources and productivity seems to outweigh growth gains from remittances, notably for the Caribbean. However, given emigration, remittance flows play key financing and stabilizing roles in Central America and the Caribbean. They facilitate private consumption smoothing, support financial sector stability and fiscal revenues, and help reduce poverty and inequality, without strong evidence for harmful competitiveness effects through shifts in the real exchange rate.
The paper provides an assessment of poverty and inequality on the basis of the data gathered from the most recent surveys. The vision of state and nonstate actors as well as the challenges to be met by 2015 was outlined; the paper also summarizes the major areas of work decided upon by the government of Haiti. Macroeconomic framework and policies are also discussed. Finally, this study covers financing, implementation, and monitoring of the poverty reduction strategy. The growth strategy is based on four key areas or growth vectors.
International Monetary Fund. External Relations Dept.
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