Dollarization in Ecuador. Miguel F. Ricaurte. University of Minnesota. Spring, 2008

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Dollarization in Ecuador. Miguel F. Ricaurte. University of Minnesota. Spring, 2008"

Transcription

1 Dollarization in Ecuador Miguel F. Ricaurte University of Minnesota Spring, 2008

2 My name is Miguel F. Ricaurte, and I am from ECUADOR and COSTA RICA: And I studied in Ecuador, Chile, and Kalamazoo, MI!

3 Content of the Presentation: Ecuador: some facts Exchange rates and dollarization Ecuador's crisis Costs and benefits: real vs. nominal economy Concluding comments

4 Ecuador: some facts GDP (PPP 2006 est.) Population (Jul. 2006) GDP Per Capita (PPP 2006 est.) Ecuador USA $61.52 billion $13,060 Billion 13,755, ,139,947 $4,500 $43,800 Size (sq km) Currency 283,560 incl. Galapagos Is. (Minnesota: 206,000) Before 2000: Sucre After 2000: US Dollar 9,631,420 US Dollar Source: CIA World Fact Book,

5 Ecuador: some facts Main Exports Main Imports Main trade partners Ecuador Crude Oil Bananas Shrimp, Fish Coffee Flowers Machinery Equipment Fuels Consumer goods US 51.2%, Peru 8.1%, Colombia 4.4% Chile 4.1% USA Capital goods Automobiles Industrial supplies Consumer goods Agricultural products Crude oil Refined petroleum Machinery Automobiles Consumer goods Canada 22.2%, Mexico 12.9%, Japan 5.8%, China 5.8%, UK 4.4% Source: CIA World Fact Book,

6 Ecuador: some facts One of the poorest countries in S. America: GDP per capita PPP US$ (2006) Argentina 15,200 Chile 12,600 Uruguay 10,900 Brazil 8,800 Colombia 8,600 Venezuela 7,200 Ecuador 4,500 Bolivia 3,100

7 It has experienced slow growth in the last two decades: GDP per capita, constant 2000 US$ 1,500 1,400 1,300 1,200 1,100 1,

8 and it has been lagging compared to the US: GDP per capita, constant 2000 US$ 40,000 35,000 30,000 USA 25,000 20,000 15,000 10,000 5,000 Ecuador

9 Exchange Rates and dollarization

10 Exchange rates and dollarization Flexible Floating No intervention US Dirty flotation Some intervention Costa Rica Fixed Pegged to another currency Venezuela, China, EU Inflexible Dollarized No local currency! Ecuador, El Salvador

11 Exchange rates and dollarization: Unofficial Dollarization (de facto dollarization) refers to the case when a large number of agents keep a significant fraction of their financial wealth in foreign currency, although this currency is not the legal tender. Official Dollarization refers to the case when a country's monetary authority renounces to its own currency and adopts a foreign currency (in particular, the dollar) to use it as legal tender

12 The Crisis

13 The Crisis Ecuador suffered a severe shock in : El Niño weather phenomenon affected agricultural sector

14 The Crisis Ecuador suffered a severe shock in : El Niño weather phenomenon affected agricultural sector Oil price historically low, affected government's budget: In 1998, the government's budget forecasted oil price to be at $14 per barrel, but...

15 Historically low oil prices were observed in (effective prices for Ecuador) Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06

16 ... total government revenues dipped in as well as oil revenues as a % of total revenues... 40% 35% 30% 25% 20% 15% 10% 5% 0% Oil revenue (% Tot. Rev.) Total Revenues (mill. US$) ,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

17 ... and the budget deficit was the largest in a decade (government budget as a % of GDP)

18 The Crisis Ecuador suffered a severe shock in : El Niño weather phenomenon affected agricultural sector Oil price historically low, affected government's budget Financial crisis in Latin America (triggered in SE Asia) decreased loanable funds available to the government and private banks

19 The Crisis More than 20 - half - of the banks went bankrupt The government took over them, making its situation even harder The result: The worst economic crisis in Ecuador's history

20 Real consequences

21 Real GDP per capita fell 7.65% between 1998 and 1999 (from $1384 to $1279 in 1999 in 2000 US Dollars), and Real GDP fell by 6.3%

22 Real GDP Growth (Minimum reached in 1998) 8% 6% 7.9% increase 4% 2% 0% -2% -4% -6% -8% 6.3% drop

23 Employment The magnitude of the crisis resulted in an increase unemployment rate:

24 Nominal consequences

25 People didn't trust the Sucre and this caused depreciation (Sucres per US$) Between Jan 99 - Jan 00: 274% depreciation of the sucre Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00

26 The resulting financial crisis caused affected foreign reserves (International Foreign Reserves, Mill. US$) Sep 97 - Mar 00: Loss more than 50% of reserves 0 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00

27 ... with increasing import prices, inflation jumped... (12-month change in the CPI) 120% 100% Maximum Inflation: 107.9% 80% 60% 40% 20% 0%

28 ... so the Central Bank increased nominal interest rates: (Nominal Interest Rate) 80% 70% 60% 50% 40% 30% 20% 10% 0% Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99

29 An Unofficially Dollarized Economy By the year 2000, Ecuador was unofficially dollarized: Most transactions of durable goods (e.g., cars, housing) as well as rental payments and loans were denominated in US Dollars 40% of broad money (savings and checking deposits, as well as other liquid assets) were held in US Dollars

30 Dollarization

31 The Official Dollarization January 11, 2000: official dollarization applied by President Jamil Mahuad The exchange rate fixed at 25,000 Sucres per Dollar January 21, 2000 : Mahuad deposed, Vicepresident, Noboa, ratified his predecessor's decision Central Bank began to exchange Dollars for Sucres March - May 2000: savings and checking deposits were converted to Dollars September 2000: transactions conducted in Dollars

32 The defunct Sucre

33 The defunct Sucre

34 Gave way to the dollar

35 Costs and benefits

36 Why dollarize? Decrease inflation, imported goods do not become more expensive in local currency; which in turn causes reduction of nominal rate: i nom = i real + expected inflation No chance of currency a crisis (no depreciation), which in turn causes decrease of local nominal rate: i ECU = i US + country risk+ expected depreciation Promotes fiscal discipline (since printing money cannot be used to finance deficit anymore!)

37 Why not dollarize? Loss of monetary independence - not a cost when monetary authorities are not responsible - Loss of Seigniorage (for Ecuador: around 7% GDP) Central Bank cannot be lender of last resort - no money printing minimizes this possibility Cost of re-setting accounting systems to Dollars National pride: can be a big thing. For example, England does not want to give away the Pound in exchange for the Euro

38 Why not dollarize? Additional real flexibility needed, labor market (unemployment rate, main cities) Guayaquil Quito Cuenca 0 Jan-01 Oct-01 Jul-02 Apr-03 Jan-04 Oct-04 Jul-05 Apr-06

39 ... unemployment seemed to go down, but informal employment jumped! 60 (informal employment rate, national) Jan-01 Oct-01 Jul-02 Apr-03 Jan-04 Oct-04 Jul-05 Apr-06

40 ... as well as the exodus of migration... (number of migrans ) Work Tourism Residence Others

41 ... as well as the exodus of migration... (total number of migrants ) Reason 0 Work Tourism Residence Others Italy Others Spain United States Destination

42 As a product of the crisis: 350,000 Ecuadorians migrated between 1996 and Unofficial figures set at 2 million the number of Ecuadorians abroad! That is: roughly 3% of Ecuadorians left the country. (if 3% of US citizens left the US, that would mean that 8 million people would leave the country!) Migration slowed down in 2002 when Spain enforced a tourist visa for Ecuadorian citizens and the US less lenient in granting visas.

43 The recovery process

44 Since then, the economy is now (slowly) recovering:

45 The economy has recovered (GDP per capita US$, and average growth rate) 1,650 1, % -0.02% 3.66% 1,550 1,500 1,450 1,400 1,350 1,300 1,250 1,200 Second oil boom and dollarization

46 ... partially fueled by the inflow of fresh resources: FDI and other transfers (more on this later)... (FDI, millions of US$) 1,600 1,400 1,200 1,000 Pre-Dollarization: $4708 mill Post-Dollarization: $6040 mill

47 4,000 3,500 3,000 2,500 2,000 1,500 1, which have strengthened foreign reserves (AIFR, millions of US$) Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dic-06 Jun-07

48 Inflation dropped within a few years... (12-month change CPI) 120% 100% Maximum Inflation: 107.9% 80% 60% 40% Average yearly inflation since December 2001: 4.7% 20% 0%

49 Nominal interest rates have also dropped... (Nominal Interest Rate) 80% 70% 60% 50% 40% 30% 20% 10% 0% Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06

50 Since then, the economy is now (slowly) recovering: Major changes in the labor laws were introduced in 2000 to make the market more flexible, but Unemployment and informal employment remain relatively high: o unemployment rate: 10 and 12% o informal employment: 50% Few migrants have returned to Ecuador

51 Why did Ecuadorians migrate? The real market is inflexible! There were no private or public safety nets o unemployment insurance o private insurance schemes (e.g., family savings) Ecuadorians who could not find jobs sought ways to make money abroad The impact of migrant workers is huge: transfers to Ecuador accounted for more than 8% of Ecuador s private consumption in the last five years.

52 Workers remittances (transfers) have been very large (Millions of US$ and % of household consumption) Millions of Dollars % of GDP Worker's Transfers % of Consumption

53 What to do next? Ecuador needs to make markets more dynamic; task for both the government (laws, taxes) and the private sector (R&D, efficient management) Guarantee inflow of dollars (through exports and foreign investment), no other way to "print" money Ensure there is political stability

54

Labor Market Flexibility in the Global Economy: The cases of Chile and Ecuador. Miguel F. Ricaurte. University of Minnesota.

Labor Market Flexibility in the Global Economy: The cases of Chile and Ecuador. Miguel F. Ricaurte. University of Minnesota. Labor Market Flexibility in the Global Economy: The cases of Chile and Ecuador Miguel F. Ricaurte University of Minnesota Spring, 2005 My name is Miguel F. Ricaurte, and I am from ECUADOR and COSTA RICA:...

More information

Remittances To Latin America and The Caribbean in 2010 STABILIZATION. after the crisis. Multilateral Investment Fund Member of the IDB Group

Remittances To Latin America and The Caribbean in 2010 STABILIZATION. after the crisis. Multilateral Investment Fund Member of the IDB Group Remittances To Latin America and The Caribbean in 2010 STABILIZATION after the crisis Multilateral Investment Fund Member of the IDB Group Total: US$ 58.9 billion 2010 REMITTANCES TO LATIN AMERICA AND

More information

Table 1. Nepal: Monthly Data for Key Macroeconomic Indicators.

Table 1. Nepal: Monthly Data for Key Macroeconomic Indicators. Table 1. : Monthly Data for Key Macroeconomic Indicators. 1 1 Year-on-year change, in percent Oct Nov Dec FY to date Oct Nov Dec FY to date Oct Nov Dec FY to date ( months) ( months) ( months) Inflation

More information

The Impact of the Global Economic Crisis on Central and Eastern Europe. Mark Allen

The Impact of the Global Economic Crisis on Central and Eastern Europe. Mark Allen The Impact of the Global Economic Crisis on Central and Eastern Europe Fourth Central European CEMS Conference Warsaw, February 25, 211 Mark Allen Senior IMF Resident Representative for Central and Eastern

More information

Mark Allen. The Financial Crisis and Emerging Europe: What Happened and What s Next? Senior IMF Resident Representative for Central and Eastern Europe

Mark Allen. The Financial Crisis and Emerging Europe: What Happened and What s Next? Senior IMF Resident Representative for Central and Eastern Europe The Financial Crisis and Emerging Europe: What Happened and What s Next? Seminar with Romanian Trade Unions Bucharest, November 2, 21 Mark Allen Senior IMF Resident Representative for Central and Eastern

More information

Figure 1. Nepal: Recent Fiscal Developments

Figure 1. Nepal: Recent Fiscal Developments Figure 1. : Recent Fiscal Developments Strong revenue growth combined with subdued capital spending kept the budget in surplus the past years. Fiscal Performance Revenue Capital expenditure 1 Current expenditure

More information

REMITTANCES TO LATIN AMERICA AND THE CARIBBEAN IN 2013: STILL BELOW PRE CRISIS LEVELS

REMITTANCES TO LATIN AMERICA AND THE CARIBBEAN IN 2013: STILL BELOW PRE CRISIS LEVELS REMITTANCES TO LATIN AMERICA AND THE CARIBBEAN IN 2013: STILL BELOW PRE CRISIS LEVELS Multilateral Investment Fund Member of the IDB Group REMITTANCES TO LATIN AMERICA AND THE CARIBBEAN IN 2013: STILL

More information

Latin America and the Caribbean

Latin America and the Caribbean Regional Outlook Latin America and the Caribbean Sebastián Vergara M. Development Policy and Analysis Division Department of Economic and Social Affairs United Nations UN DESA Expert Group Meeting on the

More information

Chapter Nine. Regional Economic Integration

Chapter Nine. Regional Economic Integration Chapter Nine Regional Economic Integration Introduction 9-3 One notable trend in the global economy in recent years has been the accelerated movement toward regional economic integration - Regional economic

More information

International migration within Latin America. Mostly labor circulation flows Industrial and urban destinations Rural origin to urban destination

International migration within Latin America. Mostly labor circulation flows Industrial and urban destinations Rural origin to urban destination International migration within Latin America Mostly labor circulation flows Industrial and urban destinations Rural origin to urban destination International to and from Latin America Colonial migrations

More information

Inter-American Development Bank (IDB)

Inter-American Development Bank (IDB) REPORT ON ACTIVITIES AND PROGRAMMES ON MIGRATION, DEVELOPMENT AND REMITTANCES Inter-American Development Bank (IDB) This paper provides a brief summary of the main activities of the Inter-American Development

More information

Mortgage Program for Mexican Migrant Workers. Second International Conference on Migrant Remittances London, November 2006

Mortgage Program for Mexican Migrant Workers. Second International Conference on Migrant Remittances London, November 2006 Mortgage Program for Mexican Migrant Workers Second International Conference on Migrant Remittances London, November 2006 Contents 5 I. Introduction II. Mi Casa Program in Mexico What is SHF 6 Government

More information

The repercussions of the crisis on the countries of Latin America and the Caribbean

The repercussions of the crisis on the countries of Latin America and the Caribbean The repercussions of the crisis on the countries of Latin America and the Caribbean Second Meeting of Ministers of Finance of the Americas and the Caribbean Viña del Mar (Chile), 3 July 29 1 Alicia Bárcena

More information

Latin America in the New Global Order. Vittorio Corbo Governor Central Bank of Chile

Latin America in the New Global Order. Vittorio Corbo Governor Central Bank of Chile Latin America in the New Global Order Vittorio Corbo Governor Central Bank of Chile Outline 1. Economic and social performance of Latin American economies. 2. The causes of Latin America poor performance:

More information

A REBALANCING ACT IN EMERGING EUROPE AND CENTRAL ASIA. April 17, 2015 Spring Meetings

A REBALANCING ACT IN EMERGING EUROPE AND CENTRAL ASIA. April 17, 2015 Spring Meetings A REBALANCING ACT IN EMERGING EUROPE AND CENTRAL ASIA April 17, 2015 Spring Meetings A Rebalancing Act in Emerging Europe and Central Asia ECA is expected to be the slowest growing region worldwide with

More information

Policy Challenges for Armenia in the context of Recent Global and Regional Shocks

Policy Challenges for Armenia in the context of Recent Global and Regional Shocks Policy Challenges for Armenia in the context of Recent Global and Regional Shocks Teresa Daban Sanchez IMF Resident Representative to Armenia November, 215 Outline Global Environment Outlook of the CCA

More information

Migration and Remittance Trends A better-than-expected outcome so far, but significant risks ahead

Migration and Remittance Trends A better-than-expected outcome so far, but significant risks ahead Migration and Remittance Trends 2009-11 A better-than-expected outcome so far, but significant risks ahead Dilip Ratha (with Sanket Mohapatra and Ani Rudra Silwal) World Bank Global Forum for Migration

More information

Global Development Finance 2003

Global Development Finance 2003 Global Development Finance 2003 Striving for Stability in Development Finance Washington DC April 2 nd, 2003 Outline Update on global economy Near-term trends in financial flows to developing counties

More information

HAS GROWTH PEAKED? 2018 growth forecasts revised upwards as broad-based recovery continues

HAS GROWTH PEAKED? 2018 growth forecasts revised upwards as broad-based recovery continues HAS GROWTH PEAKED? 2018 growth forecasts revised upwards as broad-based recovery continues Regional Economic Prospects May 2018 Stronger growth momentum: Growth in Q3 2017 was the strongest since Q3 2011

More information

Welfare, inequality and poverty

Welfare, inequality and poverty 97 Rafael Guerreiro Osório Inequality and Poverty Welfare, inequality and poverty in 12 Latin American countries Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador, Mexico, Paraguay, Peru,

More information

Migration and Development Brief

Migration and Development Brief Migration and Development Brief 9 Migration and Remittances Team Development Prospects Group, World Bank Revised Outlook for Remittance Flows 2009 2011: Remittances expected to fall by 5 to 8 percent in

More information

Monthly Inbound Update June th August 2017

Monthly Inbound Update June th August 2017 Monthly Inbound Update June 217 17 th August 217 1 Contents 1. About this data 2. Headlines 3. Journey Purpose: June, last 3 months, year to date and rolling twelve months by journey purpose 4. Global

More information

26-27 October Paper submitted by. Econ. Eva García Fabre Minister of Industry and Productivity of Ecuador

26-27 October Paper submitted by. Econ. Eva García Fabre Minister of Industry and Productivity of Ecuador Multi-year Expert Meeting Enhancing the Enabling Economic Environment at all Levels in Support of Inclusive and Sustainable Development, and the Promotion of Economic Integration and Cooperation 26-27

More information

Did NAFTA Help Mexico? An Assessment After 20 Years February 2014

Did NAFTA Help Mexico? An Assessment After 20 Years February 2014 Did NAFTA Help Mexico? An Assessment After 20 Years February 2014 Mark Weisbrot Center for Economic and Policy Research www.cepr.net Did NAFTA Help Mexico? Since NAFTA, Mexico ranks 18th of 20 Latin American

More information

The Economies in Transition: The Recovery

The Economies in Transition: The Recovery Georgetown University From the SelectedWorks of Robert C. Shelburne October, 2011 The Economies in Transition: The Recovery Robert C. Shelburne, United Nations Economic Commission for Europe Available

More information

THE BARCELONA PARTNER COUNTRIES AND THEIR RELATIONS WITH THE EURO AREA

THE BARCELONA PARTNER COUNTRIES AND THEIR RELATIONS WITH THE EURO AREA THE BARCELONA PARTNER COUNTRIES AND THEIR RELATIONS WITH THE EURO AREA On 15 January 24 the Eurosystem held its first high-level seminar with the central banks of the 12 partner countries of the Barcelona

More information

The North Wind Doth Blow: U.S. Recession Brings Turbulence to the Mexican Economy Presented to: Maquiladora Industry Outlook Conference May 16, 2008

The North Wind Doth Blow: U.S. Recession Brings Turbulence to the Mexican Economy Presented to: Maquiladora Industry Outlook Conference May 16, 2008 The North Wind Doth Blow: U.S. Recession Brings Turbulence to the Mexican Economy Presented to: Maquiladora Industry Outlook Conference May 16, 2008 Presented by: Rafael Amiel, Ph.D. Managing Director,

More information

Through the Financial Crisis

Through the Financial Crisis Comments on: How Latvia Came Through the Financial Crisis Mark Griffiths (mgriffiths@imf.org) European Department International Monetary Fund Outline 1. Economic performance under the program Program succeeded

More information

Regional Economic Context and Economic Trends in Ukraine

Regional Economic Context and Economic Trends in Ukraine Regional Economic Context and Economic Trends in Ukraine Konstantine Kintsurashvili June 2017 ECONOMIC PROSPECTS: EBRD REGION 2 Growth in the EBRD region is to pick up in 2017 and 2018 In 2017-18, EBRD

More information

Trade led Growth in Times of Crisis Asia Pacific Trade Economists Conference 2 3 November 2009, Bangkok. Session 13

Trade led Growth in Times of Crisis Asia Pacific Trade Economists Conference 2 3 November 2009, Bangkok. Session 13 Trade led Growth in Times of Crisis Asia Pacific Trade Economists Conference 2 3 November 2009, Bangkok Session 13 Trade-Led Growth in Times of Crisis Bangkok, 02-03 November 2009 Lim Sovannara UNDP Asia

More information

Remittances in times of financial instability

Remittances in times of financial instability Remittances in times of financial instability Impact of the financial crisis on remittances to Latin America and the Caribbean Introduction Worldwide remittances to Latin America and the Caribbean (LAC)

More information

The Economies in Transition: The Recovery Project LINK, New York 2011 Robert C. Shelburne Economic Commission for Europe

The Economies in Transition: The Recovery Project LINK, New York 2011 Robert C. Shelburne Economic Commission for Europe The Economies in Transition: The Recovery Project LINK, New York 2011 Robert C. Shelburne Economic Commission for Europe EiT growth was similar or above developing countries pre-crisis, but significantly

More information

remain in favor of the moves made to help Mexico for three reasons.

remain in favor of the moves made to help Mexico for three reasons. LATIN AMERICA'S ECONOMIC BOOM: THE U.S. PERSPECTIVE Remarks by Robert P. Forrestal President and Chief Executive Officer Federal Reserve Bank of Atlanta Florida International Bankers Association Miami,

More information

Chapter 20. Preview. What Is the EU? Optimum Currency Areas and the European Experience

Chapter 20. Preview. What Is the EU? Optimum Currency Areas and the European Experience Chapter 20 Optimum Currency Areas and the European Experience Slides prepared by Thomas Bishop Copyright 2009 Pearson Addison-Wesley. All rights reserved. Preview The European Union The European Monetary

More information

Emerging Market Consumers: A comparative study of Latin America and Asia-Pacific

Emerging Market Consumers: A comparative study of Latin America and Asia-Pacific Emerging Market Consumers: A comparative study of Latin America and Asia-Pacific Euromonitor International ESOMAR Latin America 2010 Table of Contents Emerging markets and the global recession Demographic

More information

International Travel to the U.S.

International Travel to the U.S. University of Massachusetts Amherst ScholarWorks@UMass Amherst Travel and Tourism Research Association: Advancing Tourism Research Globally 2013 Marketing Outlook Forum - Outlook for 2014 International

More information

Growth and Migration to a Third Country: The Case of Korean Migrants in Latin America

Growth and Migration to a Third Country: The Case of Korean Migrants in Latin America JOURNAL OF INTERNATIONAL AND AREA STUDIES Volume 23, Number 2, 2016, pp.77-87 77 Growth and Migration to a Third Country: The Case of Korean Migrants in Latin America Chong-Sup Kim and Eunsuk Lee* This

More information

The Emergence of Latin America: A Break with History?

The Emergence of Latin America: A Break with History? The Emergence of Latin America: A Break with History? Mauricio Cárdenas, Brookings Institution Brookings Mountain West University of Nevada, Las Vegas March 1, 2011 It is impossible to understand Latin

More information

Inter-American Convention on International Commercial Arbitration, Done at Panama City, January 30, 1975 O.A.S.T.S. No. 42, 14 I.L.M.

Inter-American Convention on International Commercial Arbitration, Done at Panama City, January 30, 1975 O.A.S.T.S. No. 42, 14 I.L.M. Inter-American Convention on International Commercial Arbitration, 1975 Done at Panama City, January 30, 1975 O.A.S.T.S. No. 42, 14 I.L.M. 336 (1975) The Governments of the Member States of the Organization

More information

Student Recruitment from Latin America

Student Recruitment from Latin America PRESENTATION Student Recruitment from Latin America Chair :Gustavo Viale, CEO, InterWay Educational Consultancy, Argentina Speakers: Dr. Gabriela Ardito, President, ARSAA and Founder of VCE International,

More information

Venezuelan President Maduro s Sweeping Economic Policy Announcements

Venezuelan President Maduro s Sweeping Economic Policy Announcements Percent Venezuelan President Maduro s Sweeping Economic Policy Announcements Current conditions in Venezuela The DevTech Debt Restructuring Team recently visited Caracas and witnessed conditions on the

More information

The globalization of inequality

The globalization of inequality The globalization of inequality François Bourguignon Paris School of Economics Public lecture, Canberra, May 2013 1 "In a human society in the process of unification inequality between nations acquires

More information

Chapter 21 (10) Optimum Currency Areas and the Euro

Chapter 21 (10) Optimum Currency Areas and the Euro Chapter 21 (10) Optimum Currency Areas and the Euro Preview The European Union The European Monetary System Policies of the EU and the EMS Theory of optimal currency areas Is the EU an optimal currency

More information

THE GLOBAL ECONOMIC CRISIS DEVELOPING ECONOMIES AND THE ROLE OF MULTILATERAL DEVELOPMENT BANKS

THE GLOBAL ECONOMIC CRISIS DEVELOPING ECONOMIES AND THE ROLE OF MULTILATERAL DEVELOPMENT BANKS THE GLOBAL ECONOMIC CRISIS DEVELOPING ECONOMIES AND THE ROLE OF MULTILATERAL DEVELOPMENT BANKS ADDRESS by PROFESSOR COMPTON BOURNE, PH.D, O.E. PRESIDENT CARIBBEAN DEVELOPMENT BANK TO THE INTERNATIONAL

More information

INTERNATIONAL MIGRATION IN THE AMERICAS

INTERNATIONAL MIGRATION IN THE AMERICAS INTERNATIONAL MIGRATION IN THE AMERICAS SICREMI 2012 EXECUTIVE SUMMARY Organization of American States Organization of American States INTERNATIONAL MIGRATION IN THE AMERICAS Second Report of the Continuous

More information

KEF-2016: Reforms for Inclusive Growth November 3 4, 2016

KEF-2016: Reforms for Inclusive Growth November 3 4, 2016 KEF-216: Reforms for Inclusive Growth November 3 4, 216 CESEE regional economic outlook Dr. Bas Bakker, Senior Regional Resident Representative for Central and Eastern Europe, IMF European Department 216

More information

Remittances and the Macroeconomic Impact of the Global Economic Crisis in the Kyrgyz Republic and Tajikistan

Remittances and the Macroeconomic Impact of the Global Economic Crisis in the Kyrgyz Republic and Tajikistan Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized China and Eurasia Forum Quarterly, Volume 8, No. 4 (2010), pp. 3-9 Central Asia-Caucasus

More information

Wage Inequality in Latin America: Understanding the Past to Prepare for the Future Julian Messina and Joana Silva

Wage Inequality in Latin America: Understanding the Past to Prepare for the Future Julian Messina and Joana Silva Wage Inequality in Latin America: Understanding the Past to Prepare for the Future Julian Messina and Joana Silva 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 US (Billions) Gini points, average Latin

More information

VENEZUELA: Oil, Inflation and Prospects for Long-Term Growth

VENEZUELA: Oil, Inflation and Prospects for Long-Term Growth VENEZUELA: Oil, Inflation and Prospects for Long-Term Growth Melody Chen and Maggie Gebhard 9 April 2007 BACKGROUND The economic history of Venezuela is unique not only among its neighbors, but also among

More information

HURRICANE KATRINA AND ITS IMPACT ON LATIN AMERICA

HURRICANE KATRINA AND ITS IMPACT ON LATIN AMERICA Issue No. 231 - November 2005 HURRICANE KATRINA AND ITS IMPACT ON LATIN AMERICA This issue of the FAL Bulletin contains the report prepared jointly in September 2005 by three ECLAC divisions (the Division

More information

Macroeconomic determinants of remittances and growth in the Dominican Republic. November 23 rd, 2004 Columbia University

Macroeconomic determinants of remittances and growth in the Dominican Republic. November 23 rd, 2004 Columbia University Macroeconomic determinants of remittances and growth in the Dominican Republic November 23 rd, 2004 Columbia University Economic dynamics of remittances 1. Benefit to households 2. Distributive nature

More information

THE BALANCE OF PAYMENTS

THE BALANCE OF PAYMENTS THE BALANCE OF PAYMENTS REMITTANCE REPORT June 2016 Economic Information & Publications Department RESEARCH AND ECONOMIC PROGRAMMING DIVISION I S S N 0 7 9 9 3 2 8 5 THE BALANCE OF PAYMENTS REMITTANCE

More information

Brexit: Causes and Consequences. John Ries Sauder School of Business

Brexit: Causes and Consequences. John Ries Sauder School of Business Brexit: Causes and Consequences John Ries Sauder School of Business Outline of talk What is Brexit? What events led to the referendum? What were the key issues? What are the potential short- and long-run

More information

THE BALANCE OF PAYMENTS

THE BALANCE OF PAYMENTS THE BALANCE OF PAYMENTS REMITTANCE REPORT April 2016 Economic Information & Publications Department RESEARCH AND ECONOMIC PROGRAMMING DIVISION I S S N 0 7 9 9 3 2 8 5 THE BALANCE OF PAYMENTS REMITTANCE

More information

Reg ional Economic Ou O tl ttlook Middle East and Central Asia Department Middle International Monetary Fund October 2009

Reg ional Economic Ou O tl ttlook Middle East and Central Asia Department Middle International Monetary Fund October 2009 Regional Economic Outlook Middle East and Central Asia Department International Monetary Fund October 29 1 Caucasus and Central Asia Energy exporters Energy importers Southwestern Asia 2 October 29 Outline

More information

March 2016 Potential and Outlook for the

March 2016 Potential and Outlook for the March 2016 Potential and Outlook for the Pacific Alliance Outline 1 Pacific Alliance: aiming for integration into the global economy 2 Pacific Alliance: outlook and challenges Page 2 China United States

More information

Charting Indonesia s Economy, 1H 2017

Charting Indonesia s Economy, 1H 2017 Charting Indonesia s Economy, 1H 2017 Designed to help executives interpret economic numbers and incorporate them into company s planning. Publication Date: January 3 rd, 2017 Next Issue: To be published

More information

Last Time Industrialization in the late 19th Century up through WWII Import Substitution Industrialization (ISI) (1940s 1970s) Export Promotion

Last Time Industrialization in the late 19th Century up through WWII Import Substitution Industrialization (ISI) (1940s 1970s) Export Promotion Last Time Industrialization in the late 19th Century up through WWII Import Substitution Industrialization (ISI) (1940s 1970s) Export Promotion Industrialization TODAY Population growth, distribution,

More information

INTO THE 21 ST CENTURY: CANADA, COMMODITIES AND THE GLOBAL ECONOMY

INTO THE 21 ST CENTURY: CANADA, COMMODITIES AND THE GLOBAL ECONOMY INTO THE 21 ST CENTURY: CANADA, COMMODITIES AND THE GLOBAL ECONOMY Presentation for Fields on Wheels Conference, Winnipeg, Manitoba, November 9 th, 2012 Outline Short Run Economic Environment Quick Economic

More information

Figure 1. Nepal: Recent Macro-Economic Developments

Figure 1. Nepal: Recent Macro-Economic Developments Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Aug- Figure. : Recent Macro-Economic Developments Real GDP growth is estimated at. percent in /. Growth rebounded to. percent

More information

Remittances and Income Distribution in Peru

Remittances and Income Distribution in Peru 64 64 JCC Journal of CENTRUM Cathedra in Peru by Jorge A. Torres-Zorrilla Ph.D. in Agricultural Economics, University of California at Berkeley, CA M.Sc. in Agricultural Economics, North Carolina State

More information

WORLD RADIOLOGY DAY CELEBRATION 2013

WORLD RADIOLOGY DAY CELEBRATION 2013 WORLD RADIOLOGY DAY CELEBRATION 2013 CURRENT STATUS OF RADIOLOGY IN LATIN AMERICA AND THE CARIBBEAN GLORIA SOTO GIORDANI President Inter American College of Radiology (CIR) Latin America 20 countries:

More information

Source: Same as table 1. GDP data for 2008 are not available for many countries; hence data are shown for 2007.

Source: Same as table 1. GDP data for 2008 are not available for many countries; hence data are shown for 2007. Migration and Development Brief 10 Migration and Remittances Team Development Prospects Group, World Bank July 13, 2009 Outlook for Remittance Flows 2009-2011: Remittances expected to fall by 7-10 percent

More information

Lessons from the Gulf s Twin Shocks

Lessons from the Gulf s Twin Shocks Lessons from the Gulf s Twin Shocks Ibrahim Saif Stanford April 26, 2012 Outlining the Twin Crisis The oil-rich economies of the Gulf Cooperation Council (GCC) are facing a twin challenge to their stability

More information

CRS Report for Congress

CRS Report for Congress Order Code RS21478 Updated February 23, 2004 CRS Report for Congress Received through the CRS Web Thailand-U.S. Economic Relations: An Overview Wayne M. Morrison Specialist in International Trade and Finance

More information

Global Economic Prospects 2009

Global Economic Prospects 2009 Global Economic Prospects 2009 Forecast Update March 30, 2009 World Bank DEC Prospects Group Overview What began six months ago with a massive de-leveraging in financial markets has turned into one of

More information

The Big Switch in Latin America: Restoring Growth Through Trade

The Big Switch in Latin America: Restoring Growth Through Trade 216/FDM2/3 Session 1 The Big Switch in Latin America: Restoring Growth Through Trade Purpose: Information Submitted by: World Bank Group Finance and Central Bank Deputies Meeting Lima, Peru 14 October

More information

Migration, Remittances and Children s Schooling in Haiti

Migration, Remittances and Children s Schooling in Haiti Migration, Remittances and Children s Schooling in Haiti Catalina Amuedo-Dorantes San Diego State University & IZA Annie Georges Teachers College, Columbia University Susan Pozo Western Michigan University

More information

Growth, Investment and Trade Challenges: India and Japan

Growth, Investment and Trade Challenges: India and Japan Growth, Investment and Trade Challenges: India and Japan October 31, 2017 Shujiro URATA Waseda University Outline 1. Economic Growth: Japan and India 2. Foreign Trade and Investment 3. India Japan EPA

More information

PRIVATE CAPITAL FLOWS RETURN TO A FEW DEVELOPING COUNTRIES AS AID FLOWS TO POOREST RISE ONLY SLIGHTLY

PRIVATE CAPITAL FLOWS RETURN TO A FEW DEVELOPING COUNTRIES AS AID FLOWS TO POOREST RISE ONLY SLIGHTLY The World Bank News Release No. 2004/284/S Contacts: Christopher Neal (202) 473-7229 Cneal1@worldbank.org Karina Manaseh (202) 473-1729 Kmanasseh@worldbank.org TV/Radio: Cynthia Case (202) 473-2243 Ccase@worldbank.org

More information

Western Balkans Countries In Focus Of Global Economic Crisis

Western Balkans Countries In Focus Of Global Economic Crisis Economy Transdisciplinarity Cognition www.ugb.ro/etc Vol. XIV, Issue 1/2011 176-186 Western Balkans Countries In Focus Of Global Economic Crisis ENGJELL PERE European University of Tirana engjell.pere@uet.edu.al

More information

Income, Deprivation, and Perceptions in Latin America and the Caribbean:

Income, Deprivation, and Perceptions in Latin America and the Caribbean: Income, Deprivation, and Perceptions in Latin America and the Caribbean: New Evidence from the Gallup World Poll Leonardo Gasparini* Walter Sosa Escudero** Mariana Marchionni* Sergio Olivieri* * CEDLAS

More information

Migration and Remittances

Migration and Remittances Migration and Remittances Recent Developments and Outlook Dilip Ratha Global Remittance Working Group Coordinator for Technical Areas 1 and 2 January 20, 2016 Washington D.C. Remittance flows to developing

More information

This document is available on the English-language website of the Banque de France

This document is available on the English-language website of the Banque de France JUNE 7 This document is available on the English-language website of the www.banque-france.fr Countries ISO code Date of entry into the euro area Fixed euro conversion rates France FR //999.97 Germany

More information

OFFICIAL DEVELOPMENT ASSISTANCE AND THE FIGHT AGAINST POVERTY AND HUNGER IN LATIN AMERICA AND THE CARIBBEAN

OFFICIAL DEVELOPMENT ASSISTANCE AND THE FIGHT AGAINST POVERTY AND HUNGER IN LATIN AMERICA AND THE CARIBBEAN OFFICIAL DEVELOPMENT ASSISTANCE AND THE FIGHT AGAINST POVERTY AND HUNGER IN LATIN AMERICA AND THE CARIBBEAN Regional Consultations on the Economic and Social Council Annual Ministerial Review Ministry

More information

Figure 1. Nepal: Recent Macro-Economic Developments

Figure 1. Nepal: Recent Macro-Economic Developments May- May- May- May- Figure. : Recent Macro-Economic Developments Real GDP growth is estimated at. percent in /. Growth rebounded to. percent in /, after a slump due to the earthquakes and trade disruptions.

More information

Mexico s Update Global Spa & Wellness Summit. Aspen, CO June 4, 2012

Mexico s Update Global Spa & Wellness Summit. Aspen, CO June 4, 2012 Mexico s Update 2012 Global Spa & Wellness Summit Aspen, CO June 4, 2012 Macroeconomic Fundamentals Maastricht criteria ( 3% of GDP) Debt and deficit in 2011 Maastricht criteria ( 60% of GDP) Source: Bloomberg,

More information

Fourth High Level Dialogue on Financing for Development. United Nations, New York, March 2010.

Fourth High Level Dialogue on Financing for Development. United Nations, New York, March 2010. The impact of the current financial and economic crisis on foreign direct investment and other private flows, external debt and international trade in emerging market economies Fourth High Level Dialogue

More information

Regional Economic Outlook Caucasus and Central Asia. November 2, 2016

Regional Economic Outlook Caucasus and Central Asia. November 2, 2016 Regional Economic Outlook Caucasus and Central Asia November 2, 216 Outline Global and Regional Environment Outlook and Policy Actions Policy Priorities 2 Global growth remains lackluster World U.S. Euro

More information

Lecture III South Korean Economy today

Lecture III South Korean Economy today Lecture III South Korean Economy today Lecture 3: South Korean Economy - Current Status and Issues in the future South Korean Economy: Current Status 1 Korean Economy with Numbers GDP (PPP based) S. Korea

More information

U.S.-Latin America Trade: Recent Trends

U.S.-Latin America Trade: Recent Trends Order Code 98-840 Updated January 2, 2008 U.S.-Latin America Trade: Recent Trends Summary J. F. Hornbeck Specialist in International Trade and Finance Foreign Affairs, Defense, and Trade Division Since

More information

U.S.-Latin America Trade: Recent Trends

U.S.-Latin America Trade: Recent Trends Order Code 98-840 Updated May 18, 2007 U.S.-Latin America Trade: Recent Trends Summary J. F. Hornbeck Specialist in International Trade and Finance Foreign Affairs, Defense, and Trade Division Since congressional

More information

Prevention and reduction of statelessness in the Americas

Prevention and reduction of statelessness in the Americas Prevention and reduction of statelessness in the Americas Committee on Juridical and Political Affairs, Organization of American States February 23, 2012 Legal bases for action to prevent and reduce statelessness

More information

State and Prospects of the FTAs of Japan and the Asia-Pacific Region. February 2013 Kazumasa KUSAKA

State and Prospects of the FTAs of Japan and the Asia-Pacific Region. February 2013 Kazumasa KUSAKA State and Prospects of the FTAs of Japan and the Asia-Pacific Region February 2013 Kazumasa KUSAKA 1 Development of Japan s EPA/FTA Networks Took Effect/Signed 12 countries and 1 region Study/discussion

More information

Outlook for migration and remittances

Outlook for migration and remittances Outlook for migration and remittances 2012-15 Dilip Ratha World Bank November 27, 2012 Development Prospects Group (DECPG) BBL Washington, D.C. Outline Cyclical trends for 2012-15 Long-term structural

More information

GCC Economic Integration

GCC Economic Integration GCC Economic Integration References Rutledge, Chapters 1 & 4 Topics addressed» GCC economic integration progress to date» Why integrate?» Recent intra GCC trade and investment trends» Setbacks to GCC economic

More information

2004 Labour Overview: Latin America and the Caribbean

2004 Labour Overview: Latin America and the Caribbean Cornell University ILR School DigitalCommons@ILR International Publications Key Workplace Documents December 2004 2004 Labour Overview: Latin America and the Caribbean International Labour Office, Regional

More information

Global Trade and the World Economy October Animesh Ghoshal, DePaul University

Global Trade and the World Economy October Animesh Ghoshal, DePaul University Global Trade and the World Economy October 2017 Animesh Ghoshal, DePaul University State of World Economy, Oct. 2017 Global economy strengthening Outlook still fragile World as whole Advanced economies

More information

Migration and remittances in times of recession: Effects on Latin American economies

Migration and remittances in times of recession: Effects on Latin American economies Migration and remittances in times of recession: Effects on Latin American economies Manuel Orozco Inter American Dialogue April 2009 Introduction 1 The report shows that in 2009 immigrants from Latin

More information

Chapter 20. Optimum Currency Areas and the European Experience. Slides prepared by Thomas Bishop

Chapter 20. Optimum Currency Areas and the European Experience. Slides prepared by Thomas Bishop Chapter 20 Optimum Currency Areas and the European Experience Slides prepared by Thomas Bishop Preview The European Union The European Monetary System Policies of the EU and the EMS Theory of optimal currency

More information

Latin America: Still Searching for Stability

Latin America: Still Searching for Stability Latin America: Still Searching for Stability World Geographic Shares 133.8 Million Sq. Kilometers North America South America Europe Africa Asia Australia/ Oceania 18% 13% 7% 22% 33% 6% World Population

More information

24 Negocios infographics oldemar. Mexico Means

24 Negocios infographics oldemar. Mexico Means 2 Negocios infographics oldemar Mexico Means Mexico s Means Partner opportunity enersave OPPORTUNITY 2 Negocios INFOGRAPHICS OLDEMAR MEET MEXICO MEXICO IS A big country Mexico is part of North America,

More information

Poverty Reduction and Economic Management The World Bank

Poverty Reduction and Economic Management The World Bank Financiamento del Desarollo Productivo e Inclusion Social Lecciones para America Latina Danny Leipziger Vice Presidente Poverty Reduction and Economic Management, Banco Mundial LAC economic growth has

More information

Comparing GDP among Countries

Comparing GDP among Countries OpenStax-CNX module: m48711 1 Comparing GDP among Countries OpenStax College This work is produced by OpenStax-CNX and licensed under the Creative Commons Attribution License 3.0 By the end of this section,

More information

ABC. The Pacific Alliance

ABC. The Pacific Alliance ABC The Pacific Alliance 1 The Pacific Alliance Deep integration for prosperity The Pacific Alliance is a mechanism for regional integration formed by Chile, Colombia, Mexico and Peru, in April 2011. It

More information

Determining factors of inbound travel to Japan A stronger yen matters more for the NIEs than China

Determining factors of inbound travel to Japan A stronger yen matters more for the NIEs than China Mizuho Economic Outlook & Analysis February 19, 216 Determining factors of inbound travel to Japan A stronger yen matters more for the NIEs than < Summary > To analyze the sustainability of inbound travel

More information

Worker Remittances: An International Comparison

Worker Remittances: An International Comparison Worker Remittances: An International Comparison Manuel Orozco Inter-American Dialogue February 28th, 2003 Inter-American Development Bank Worker Remittances: An International Comparison Manuel Orozco,

More information

STAREBEI: DELIVERABLE 1

STAREBEI: DELIVERABLE 1 STAREBEI: DELIVERABLE 1 The Estonian Economic Conditions: A Review Luca Cocconcelli QASER Lab University College London Gower Street London, WC1E 6BT, UK l.cocconcelli@ucl.ac.uk Francesca Romana Medda

More information

Perspective on India - Germany Trade Relations and the way forward

Perspective on India - Germany Trade Relations and the way forward Perspective on India - Germany Trade Relations and the way forward Ajay Durrani 04.10.2018 covestro.com Forward-looking statements This presentation may contain forward-looking statements based on current

More information

Overview of JODI Gas Milestones and Beta Test Launch

Overview of JODI Gas Milestones and Beta Test Launch 3 rd Gas Data Transparency Conference 4-5 June 2013, Bali, Indonesia Overview of JODI Gas Milestones and Beta Test Launch Yuichiro Torikata Energy Analyst International Energy Forum Extending the JODI

More information