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Latin America and the rising south : changing world, changing priorities (Vol. 2) : Overview (English)

The world economy is not what it used to be twenty years ago. For most of the 20th century, the world economy was characterized by developed (North) countries acting as 'center' to a 'periphery' of developing (South) countries. However, the recent rise of developing economies suggests the need to go beyond this North-South dichotomy. This tectonic re-configuration of the global landscape has brought about significant changes to countries in the Latin America and Caribbean (LAC) region. The time is ripe for an in-depth analysis of the dynamics and nature of LAC's external connections. This latest volume in the World Bank Latin American and Caribbean Studies series will focus on the implications of these trends for the economic development of LAC countries. In particular, trade, financial, macroeconomic, and sectoral shifts, as well as labor-market aspects will be systematically analyzed. This report's overview first documents salient features of the new global economic order by focusing on the rising prominence of emerging economies. The second section of the overview then provides an economic interpretation of how the changes at the heart of the global economy are conditioning growth and employment prospects in LAC. The third section of the overview then assesses broad policy areas that, given the rising South phenomenon, should find their way to the top of the region’s growth-oriented reform agenda. The five chapters that make up the rest of this report provide a more detailed analysis of the rise of the South and the nature of LAC's evolving external connections. They draw implications from these changes for the region’s economic development. Chapter 1 sets the stage for the rest of the report by characterizing the rise of the South and outlining a set of relevant trends that are shaping LAC's economic prospects. Chapter 2 explores the notion that the structure of trade matters for economic development. It analyzes the extent to which the trade connections of countries in LAC, particularly with other South countries, can lead to a virtuous cycle of thriving trade and economic growth. It focuses on the potential for technology diffusion and learning spillovers from the region’s international trade linkages. Chapter 3 assesses whether and how the ongoing restructuring of the global economy, especially the changes brought about the emergence of China, has affected labor markets in the region. It provides a discussion of how social protection policies can help reduce labor market adjustment costs when economies face long-lasting structural changes emanating from the reconfiguration of the global economy. Chapter 4 provides a detailed analysis of the degree of financial connectivity of LAC countries with the North and the South. It investigates the extent to which LAC’s financial integration is related to its trade integration and the degree to which financial flows are associated with increases in labor productivity. Chapter 5 studies the evolving connectivity between LAC and the rising South based on the relative importance of domestic versus external demand. It evaluates whether the low domestic saving rates in the region impaired its growth potential in the past and may continue to do so in the future given the world's economy.


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    De La Torre,Augusto, Didier Brandao,Tatiana, Ize,Alain, Lederman,Daniel, Schmukler,Sergio L.

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    Latin America,

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    Latin America & Caribbean,

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  • Keywords

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De La Torre,Augusto Didier Brandao,Tatiana Ize,Alain Lederman,Daniel Schmukler,Sergio L.

Latin America and the rising south : changing world, changing priorities (Vol. 2) : Overview (English). Latin America and Caribbean Studies Washington, D.C. : World Bank Group.