Wednesday, May 04, 2011

Latin America economic outlook

The International Monetary Fund issued its Regional Economic Outlook for Latin America.  The overall conclusion is that growth is based largely on commodity exports, demand for which has created a risk of overheating.  Tucked in there is the acknowledgment that high commodity prices include food and that high food prices make people go hungry.  What to do?  School lunches within the "established budget envelope" without stimulating demand.  Who knew hunger was so easily solved?


Rising global prices of commodities, especially food, pose an important social challenge across the region. This applies even to countries that are net exporters of commodities and food, the report said.
To protect the poor, policies should focus on scaling up proven social safety net programs, such as targeted income transfers, school lunches, and child nutrition programs. Generalized price subsidies should be avoided as these measures are often very costly and regressive, and can turn out to be permanent—requiring large adjustments to other parts of the budget. The expansion of safety nets should take place within the established budget envelope, in some cases to avoid stimulating demand (South America), while in other cases to rebuild the policy buffers (Central America and the Caribbean).

1 comments:

Vicente Duque 9:51 AM  

Good Post Mr Weeks.

The best policy for Latin America is moderation and rationality.

Do not be extra-punitive blaming rich nations for our own sins. No scapegoating please ! ... Hugo Chavez style.

Recently the presidents of Mexico, Colombia, Peru and Chile met in Lima and discussed a possible future economic and political block.

The counter-Hugo or anti-Hugo or at least to neutralize the madness of Hugo Club that includes Fidel Castro, Daniel Ortega, Rafael Correa, Evo Morales.

I wish that Mr Weeks forecasts the future of the "Pacific Block" .. the MeCoPeCh it has been said that the Mecopech is necessary to compete against the Asian Tigers and the Super Tyrannosaurus of China.

There is no progress if Latin America does not acknowledge and recognize its internal corruption, inefficiency, inefficacy, kafkian useless bureaucracy, corrupt politicking, bribes everywhere, denial of justice for the common man and dirty tricks against separation of powers.

And the constitutions that are toilet paper and laws that are not fulfilled.

"Se obedece pero no se cumple"

We obey but do not fulfill and accomplish ( the purposes of the laws ).

Vicente

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