www.worldbank.org/laceconomicpolicy

	The LAC Economic Policy Unit at the World Bank monitors and evaluates the unique economic realities that characterize each country through different tools:   Country and Regional Studies   Development Policy   Lending Macroeconomic Monitoring
As Economic Policy plays a pivotal role in reducing poverty in Latin America and the Caribbean, the World Bank strives to help LAC policymakers implement sound economic policies that address current challenges. Recognizing that a high growth rate helps to reduce poverty, the Bank favors policy frameworks that promote sustainable growth.  Learn more

Rising food prices are a growing policy challenge for both middle-income and low-income countries in the region. Between March 2006 and March 2008 the international food price index nearly doubled in nominal terms, rising 82 percent. It appears that a fundamental shift in global supply and demand is behind current food price inflation. This shift has been shaped by factors ranging from increased demand for biofuels and higher energy prices to poor harvests in key producers and climate change. Although these factors are structural and cyclical, countries must act as though high food prices are here to stay.  Read more

Bolivia: Policies for Increasing Firms’ Formality and Productivity. Bolivia’s informal sector is the largest in Latin America, by many definitions and measures. Nearly 80 percent of urban and rural employment in Bolivia is informal, which is the highest level in Latin America. The average share of informal employment across the region is below 60 percent. Bolivia leads the world in value-added generated by the informal sector as a share of gross domestic product, estimated at 68 percent. Informality in Bolivia is also the highest in the region under a legalistic definition based on the right to a retirement pension linked to employment. About 70 percent of workers are not registered in the pension system-the highest in the region, along with Paraguay.  More |  Watch the video

Costa Rica - Public expenditure review: enhancing the efficiency of expenditures. Costa Rica’s economic growth has averaged 4.7 percent annually over the last 15 years, about 2 percentage points above the rest of Latin America, reflecting its stable macroeconomic and political environment, strong institutions, and a well-educated work force. During this period, Costa Rica has followed a successful strategy of outward-oriented export-led growth, openness to foreign investment, and gradual trade liberalization that transformed the economy from one highly dependent on agriculture and agro-industry to one that is now led by high-tech computer and electronic industries, services such as transport, communications and banking, non-traditional agriculture, and tourism. Despite these achievements, several challenges remain.  More

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