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Mr. Ravi Balakrishnan
,
Sandra Lizarazo
,
Marika Santoro
,
Mr. Frederik G Toscani
, and
Mr. Mauricio Vargas
Over the past decades, inequality has risen not just in advanced economies but also in many emerging market and developing economies, becoming one of the key global policy challenges. And throughout the 20th century, Latin America was associated with some of the world’s highest levels of inequality. Yet something interesting happened in the first decade and a half of the 21st century. Latin America was the only region in the World to have experienced significant declines in inequality in that period. Poverty also fell in Latin America, although this was replicated in other regions, and Latin America started from a relatively low base. Starting around 2014, however, and even before the COVID-19 pandemic hit, poverty and inequality gains had already slowed in Latin America and, in some cases, gone into reverse. And the COVID-19 shock, which is still playing out, is likely to dramatically worsen short-term poverty and inequality dynamics. Against this background, this departmental paper investigates the link between commodity prices, and poverty and inequality developments in Latin America.
International Monetary Fund. Western Hemisphere Dept.

Abstract

The world economy and global trade are experiencing a broad-based cyclical upswing. Since October 2017, global growth outcomes and the outlook for 2018–19 have improved across all regions, reinforced by the expected positive near-term spillovers from tax policy changes in the United States. Accommodative global financial conditions, despite some tightening and market volatility in early February 2018, have been providing support to economic recovery. Higher commodity prices are contributing to an improved outlook for commodity exporters. The US and Canadian economies posted solid gains in 2017 and are expected to grow above potential in the near term. Despite the improved near-term outlook, however, medium-term prospects are tilted downwards. Growth prospects for advanced economies are subdued and many emerging market and developing economies are projected to grow in per capita terms more slowly than advanced economies, raising concerns about income convergence. While risks appear broadly balanced in the near term, they skew to the downside over the medium term, including a possible sharp tightening of financial conditions, waning popular support for global economic integration, growing trade tensions and risks of a shift toward protectionist policies, and geopolitical strains.

International Monetary Fund. Western Hemisphere Dept.

Abstract

The world economy and global trade are experiencing a broad-based cyclical upswing. Since October 2017, global growth outcomes and the outlook for 2018–19 have improved across all regions, reinforced by the expected positive near-term spillovers from tax policy changes in the United States. Accommodative global financial conditions, despite some tightening and market volatility in early February 2018, have been providing support to economic recovery. Higher commodity prices are contributing to an improved outlook for commodity exporters. The US and Canadian economies posted solid gains in 2017 and are expected to grow above potential in the near term. Despite the improved near-term outlook, however, medium-term prospects are tilted downwards. Growth prospects for advanced economies are subdued and many emerging market and developing economies are projected to grow in per capita terms more slowly than advanced economies, raising concerns about income convergence. While risks appear broadly balanced in the near term, they skew to the downside over the medium term, including a possible sharp tightening of financial conditions, waning popular support for global economic integration, growing trade tensions and risks of a shift toward protectionist policies, and geopolitical strains.

International Monetary Fund
By combating malaria with mosquito nets or building schools and providing basic sanitation, philanthropy is helping transform the developing world. Rich donors are devoting fortunes—many of them earned through computer software, entertainment, and venture capitalism— to defeating poverty and improving lives, supplementing and in some cases surpassing official aid channels.From billionaires Bill and Melinda Gates and Warren Buffett to Aliko Dangote and George Soros, the titans of capitalism are backing good causes with their cash. Whether financing new vaccines, building libraries, or buying up Amazon rain forest to protect the environment, philanthropists are supporting innovations and new approaches that are changing lives and building dreams.This issue of F&D looks at the world of targeted giving and social entrepreneurship.“ Philanthropy’s role is to get things started,” says Microsoft co-founder Bill Gates, who is the world’s most generous giver. “We used foundation funds to set up a system to make market forces work in favor of the poor.” He says that catalytic philanthropy can make a big difference. “Good ideas need evangelists. Forgotten communities need advocates.” Former U.S. President Bill Clinton tells us that networks of creative cooperation between government, business, and civil society can get things done better to solve the world’s most pressing problems.Also in this issue, Prakash Loungani profiles superstar economist Jeffrey Sachs, who helped campaign for debt relief for developing economies and championed the Millennium Development Goals. We look at how, instead of spending commodity price windfalls on physical investments, which are often sources of corruption, governments of poor countries are sometimes well advised to hand some of the income over to their citizens. We examine moves by major central banks to ease our way out of the crisis enveloping advanced economies in our Data Spotlight column, and we hear about how China’s growth inspires creativity in the West.
International Monetary Fund
By combating malaria with mosquito nets or building schools and providing basic sanitation, philanthropy is helping transform the developing world. Rich donors are devoting fortunes—many of them earned through computer software, entertainment, and venture capitalism— to defeating poverty and improving lives, supplementing and in some cases surpassing official aid channels.From billionaires Bill and Melinda Gates and Warren Buffett to Aliko Dangote and George Soros, the titans of capitalism are backing good causes with their cash. Whether financing new vaccines, building libraries, or buying up Amazon rain forest to protect the environment, philanthropists are supporting innovations and new approaches that are changing lives and building dreams.This issue of F&D looks at the world of targeted giving and social entrepreneurship.“ Philanthropy’s role is to get things started,” says Microsoft co-founder Bill Gates, who is the world’s most generous giver. “We used foundation funds to set up a system to make market forces work in favor of the poor.” He says that catalytic philanthropy can make a big difference. “Good ideas need evangelists. Forgotten communities need advocates.” Former U.S. President Bill Clinton tells us that networks of creative cooperation between government, business, and civil society can get things done better to solve the world’s most pressing problems.Also in this issue, Prakash Loungani profiles superstar economist Jeffrey Sachs, who helped campaign for debt relief for developing economies and championed the Millennium Development Goals. We look at how, instead of spending commodity price windfalls on physical investments, which are often sources of corruption, governments of poor countries are sometimes well advised to hand some of the income over to their citizens. We examine moves by major central banks to ease our way out of the crisis enveloping advanced economies in our Data Spotlight column, and we hear about how China’s growth inspires creativity in the West.
International Monetary Fund
By combating malaria with mosquito nets or building schools and providing basic sanitation, philanthropy is helping transform the developing world. Rich donors are devoting fortunes—many of them earned through computer software, entertainment, and venture capitalism— to defeating poverty and improving lives, supplementing and in some cases surpassing official aid channels.From billionaires Bill and Melinda Gates and Warren Buffett to Aliko Dangote and George Soros, the titans of capitalism are backing good causes with their cash. Whether financing new vaccines, building libraries, or buying up Amazon rain forest to protect the environment, philanthropists are supporting innovations and new approaches that are changing lives and building dreams.This issue of F&D looks at the world of targeted giving and social entrepreneurship.“ Philanthropy’s role is to get things started,” says Microsoft co-founder Bill Gates, who is the world’s most generous giver. “We used foundation funds to set up a system to make market forces work in favor of the poor.” He says that catalytic philanthropy can make a big difference. “Good ideas need evangelists. Forgotten communities need advocates.” Former U.S. President Bill Clinton tells us that networks of creative cooperation between government, business, and civil society can get things done better to solve the world’s most pressing problems.Also in this issue, Prakash Loungani profiles superstar economist Jeffrey Sachs, who helped campaign for debt relief for developing economies and championed the Millennium Development Goals. We look at how, instead of spending commodity price windfalls on physical investments, which are often sources of corruption, governments of poor countries are sometimes well advised to hand some of the income over to their citizens. We examine moves by major central banks to ease our way out of the crisis enveloping advanced economies in our Data Spotlight column, and we hear about how China’s growth inspires creativity in the West.
International Monetary Fund
Ya sea luchando contra la malaria con mosquiteros, o construyendo escuelas y proporcionando saneamiento básico, la filantropía está ayudando a transformar el mundo en desarrollo. Donantes ricos dedican muchísimo dinero -obtenido en muchos casos a través de sus negocios en los sectores de la informática y el entretenimiento, o de inversiones de capital-riesgo- a luchar contra la pobreza y mejorar la calidad de vida de las personas, complementando y, en algunos casos, superando la ayuda oficial. Desde los multimillonarios Bill y Melinda Gates y Warren Buffett a Aliko Dangote y George Soros, los titanes del capitalismo respaldan las buenas causas con su dinero. Ya sea financiando nuevas vacunas, construyendo bibliotecas o adquiriendo tierras en la selva amazónica para proteger el medio ambiente, los filántropos respaldan distintos proyectos y enfoques innovadores que están cambiando la vida de la gente y construyendo sueños. En este número de F&D se examinan el mundo de las donaciones focalizadas y el empresariado social. “El papel de la filantropía es poner en marcha el proceso”, dice el cofundador de Microsoft, Bill Gates, el filántropo más generoso del mundo. “Usamos los fondos de la fundación para establecer un sistema que pusiera a las fuerzas del mercado a trabajar para los pobres”. Según Gates, la filantropía catalizadora puede tener un gran impacto. “Las buenas ideas necesitan divulgación. Las comunidades olvidadas necesitan apoyo activo”. El ex Presidente de Estados Unidos, Bill Clinton, señala que las redes de cooperación creativa entre el gobierno, las empresas y la sociedad civil pueden hacer las cosas mejor para resolver los problemas más apremiantes que afronta el mundo. También en este número, Prakash Loungani traza una semblanza del economista superestrella Jeffrey Sachs, quien apoyó la campaña en favor del alivio de la deuda de las economías en desarrollo e impulsó los Objetivos de Desarrollo del Milenio. Examinamos cómo, en lugar de utilizar las ganancias extraordinarias derivadas de los precios de las materias primas en inversiones físicas, los gobiernos de los países pobres deberían transferir parte de estos ingresos a los ciudadanos. En “Un vistazo a las cifras” analizamos las medidas adoptadas por los principales bancos centrales para salir de la crisis que afecta a las economías avanzadas, e incluimos un artículo sobre cómo el crecimiento en China incentiva la creatividad en Occidente.
International Monetary Fund
En distribuant des moustiquaires pour combattre le paludisme, en construisant des écoles, ou bien encore en offrant un assainissement de base, la philanthropie aide à transformer le monde en développement. De riches donateurs consacrent des fortunes — souvent bâties dans les logiciels, le spectacle ou le capital-risque — pour vaincre la pauvreté et promouvoir le bien-être, servant d’appoint à l’aide publique, ou parfois même la dépassant. De Bill et Melinda Gates et Warren Buffett à Aliko Dangote et George Soros, les titans du capitalisme financent de nobles causes. Qu’il s’agisse de créer de nouveaux vaccins, de construire des bibliothèques ou de protéger la forêt amazonienne, les philanthropes appuient l’innovation sous toutes ses formes pour améliorer les conditions de vie et nourrir les aspirations. Ce numéro de F&D examine le monde de la philanthropie ciblée et de l’entreprenariat social. «La philanthropie a un rôle d’amorçage», déclare Bill Gates, le cofondateur de Microsoft, et le plus généreux donateur de la planète. «La fondation s’efforce de mettre en place un système qui permette aux forces du marché d’œuvrer en faveur des pauvres». Selon lui, l’effet de catalyse de la philanthropie peut être déterminant. «Les bonnes idées ont besoin d’apôtres et les laissés-pour-compte de défenseurs». L’ex-président Bill Clinton explique que les réseaux de coopération créative entre les États, les entreprises et la société civile peuvent mieux réussir à résoudre les problèmes les plus pressants de la planète. Prakash Loungani brosse le portrait de l’économiste superstar Jeffrey Sachs, champion de l’allègement de la dette et des objectifs du Millénaire pour le développement. Nous examinons en quoi les pays pauvres peuvent avoir intérêt à distribuer une partie des recettes exceptionnelles qu'ils tirent des ressources naturelles au lieu de financer des investissements pouvant être source de corruption. La rubrique Gros plan explique ce que font les banques centrales pour combattre la crise dans les pays avancés. Enfin, nous découvrons en quoi la croissance chinoise est une source de créativité pour le monde occidental.
International Monetary Fund
By combating malaria with mosquito nets or building schools and providing basic sanitation, philanthropy is helping transform the developing world. Rich donors are devoting fortunes—many of them earned through computer software, entertainment, and venture capitalism— to defeating poverty and improving lives, supplementing and in some cases surpassing official aid channels.From billionaires Bill and Melinda Gates and Warren Buffett to Aliko Dangote and George Soros, the titans of capitalism are backing good causes with their cash. Whether financing new vaccines, building libraries, or buying up Amazon rain forest to protect the environment, philanthropists are supporting innovations and new approaches that are changing lives and building dreams.This issue of F&D looks at the world of targeted giving and social entrepreneurship.“ Philanthropy’s role is to get things started,” says Microsoft co-founder Bill Gates, who is the world’s most generous giver. “We used foundation funds to set up a system to make market forces work in favor of the poor.” He says that catalytic philanthropy can make a big difference. “Good ideas need evangelists. Forgotten communities need advocates.” Former U.S. President Bill Clinton tells us that networks of creative cooperation between government, business, and civil society can get things done better to solve the world’s most pressing problems.Also in this issue, Prakash Loungani profiles superstar economist Jeffrey Sachs, who helped campaign for debt relief for developing economies and championed the Millennium Development Goals. We look at how, instead of spending commodity price windfalls on physical investments, which are often sources of corruption, governments of poor countries are sometimes well advised to hand some of the income over to their citizens. We examine moves by major central banks to ease our way out of the crisis enveloping advanced economies in our Data Spotlight column, and we hear about how China’s growth inspires creativity in the West.
International Monetary Fund
Peru’s fiscal framework embedded in the Fiscal Responsibility and Transparency Law (FRTL) has proved to be effective in reducing debt. The FRTL embodies some countercyclical elements in response to output or commodity price shocks. The combination of a provision for a moderate deficit on the downside, and a current expenditure cap on the upside, allows for some countercyclical policy. It still has pockets of procyclicality in the face of large shocks to output or commodity prices.