Index A América Móvil, 1, 144 American Depository Listings (ADRs), 12, 15 Anderson, Clayton & Company, 16 Arcor, 16 Argentina, 1, 3, 7, 9, 13, 18, 20, 295 296, 301 capital flows and, 36, 41, 42 credit and, 87, 90 economic crisis, 72 economic growth, 29, 30, 31 economic reforms, 63 64, 81 83, 94 education and, 48, 52, 54 inflation and, 32 33 infrastructure and, 155 157 labor reform, 239, 241 244, 247 248 legal reforms, 177, 179, 181, 184 185, 190 191, 194 logistics, 171 public safety and, 272, 279, 284, 285, 290 regulatory reform, 254, 260 tax reform, 218 219 technology and, 99, 101, 124, 126, 128, 137 Washington Consensus and, 39 Aruba, 15, 271 Australia, 3, 234, 260 B BAD (Bank Account Debit Transactions) Tax, 234 banking system acquisitions, 95 96 development of, 79 80 FOGAPE, 85 reforms, 80 85 risks and opportunities ahead, 88 94 ATMs, 91 banking the never-banked, 89 cards and terminals, 91 92 credit histories, 93 94 mobile banking, 92 93 SMEs, 89 91 small business financing and, 86 87 Bimbo, 16 BNDES, 65, 66, 71, 107, 126 Bolivia competitiveness, 32, 41 credit and, 82, 88 globalization and, 16, 296 infrastructure and, 149, 155 legal reforms, 185, 191 populism and, 1, 9 regulatory reform, 260 Bortagaray, Isabel, 19, 298 BOVESPA, 71, 72 73 Brazil capital flight, 13 capital markets, 63 76 boom in equities markets, 72 75 comparison of, 66 70 development of, 65 66 recovery of credit markets, 71 72 commodities and, 2 competitiveness, 29, 32 33, 35 36, 39, 41 credit and, 19 20
304 Index Brazil (contd.) education and, 47, 48, 49, 51, 52 infrastructure and, 152, 155 innovation and, 125, 126, 128, 130, 131 132, 137 labor reform, 240, 247, 249 legal reforms, 177, 179 180, 181, 183, 186, 191, 193, 194 logistics and, 20, 167, 169, 171 172, 173 migration and, 7 property and, 205, 211 public safety and, 15, 274, 277, 279 280, 283, 284 286, 290 regulatory reform, 13, 254 tax reform, 12, 218, 219 technology and, 19, 99, 101, 103, 104 116 Washington Consensus and, 9 10 Bretton Woods economic system, 8 C Canada, 3, 7, 41, 110, 122, 124 125, 128, 135, 165, 278, 284 CANTV, 15, 144 capital flight, 5 6, 13, 16, 22, 38, 128, 171, 291, 292 Cardoso, Fernando, 9, 65, 106, 167 Caribbean nations, 4, 19, 30, 32, 34 35, 36, 37, 41, 143, 152, 271, 276 280 Carrizosa, Mauricio, 18, 298 Carvajal, 1 CEITEC, 113 Chavez, Hugo, 14, 15, 128, 185, 200, 201, 290 Chile. See also FOGAPE competitiveness, 2 3, 31, 32 33, 34, 39 credit and, 81, 83 85, 87, 94 economic reforms, 63 64, 67 education and, 48, 49, 51, 54, 56, 57, 60 FOGAPE, 85 infrastructure and, 144 145, 152 154, 155, 158 innovation and, 125, 126, 137 labor reform, 239, 241, 242, 244, 246, 247 legal reforms, 178, 181, 184, 189 logistics and, 164, 165, 166, 171 172 productivity and, 1 public safety and, 273, 279, 283, 284, 287, 290 regulatory reform, 20, 42, 258, 260 tax reform, 10, 18, 217, 220, 230 232 technology and, 101, 103, 115, 298 China competitiveness, 29, 35 education and, 46, 52, 55, 58 foreign direct investment (FDI) and, 19, 277 globalization and, 4, 21, 295, 298 infrastructure and, 143 145 intellectual property rights (IPR) and, 205 206 labor reform, 244 logistics and, 164, 166 public safety and, 281, 290 regulatory reform, 255, 258, 268 technology and, 102, 105, 108 110, 112 113, 115, 116 CNEA, 126, 137 COFEMER, 18, 261 268 Collor, Fernando, 64 Comando Vermelho, 14 competitiveness, 27 40, 299 developments in macro policies in recent years, 38 39 economic growth performance in Latin America, 28 33 links to external sector, 33 38 macroeconomic management and impact on, 27 28 macroeconomic policies in Latin America, 38 corruption, 184 186 Costa Rica education and, 51, 52, 53 54 innovation and, 125, 130, 133 legal reforms, 177 178, 179, 180, 181, 184, 191 public safety and, 20, 271, 273, 277, 284, 290 crime, 7, 13 15, 20, 177, 179, 186, 189, 215, 271 292, 299. See also public safety customs reform, 172 173
Index 305 D de Soto, Hernando, 17, 200, 203, 209, 298 deregulation, 254 255 Doha Round of WTO negotiations, 16, 301 Doing Business Database, 17, 255, 258 261 drugs, 283 284 E Ecuador credit and, 82, 85, 88 education and, 52 labor reform, 240, 241, 246 legal reforms, 191 public safety and, 290, 296 remittances and, 36, 41 tax reform, 18, 217, 220, 225 227, 232 Washington Consensus and, 9 education, 45 60 challenges facing, 49 57 competitiveness and, 57 60 English language skills, 55 equity, 52 53 investment in, 49 quality, 49 52 rising levels, 46 48 science and technology, 53 54 years of schooling, 47 El Salvador education and, 52, 56 legal reforms, 181, 185 public safety and, 20, 272, 273 274, 279, 281, 282 283 UPS and, 24 Embraer, 1, 101, 109 113, 125 employment rigidity and informality, 245 247 enforcement, 187 188 F Falabella, 1 FARC, 283, 288 Field, E., 209 FINEP, 107, 111, 126 FOGAPE, 84, 85. See also Chile foreign direct investment (FDI), 5, 9, 170 172, 273, 277 formalism vs. effective conflict resolution, 186 187 formalization, 19, 90, 202, 203, 208 211, 298 G gang recruitment, 281 283 Garcia, Alan, 201, 281 GINI index, 31, 279 Global Competitiveness Index (GCI), 100 101 Global Competitiveness Report (GCR), 4, 45, 215 globalization commercial law and, 198 pre-modern countries and, 198 201 Goodspeed, Tamara Ortega, 16 17, 299 Guasch, José Luis, 17 18, 151, 299 Guatemala education and, 47, 53, 60 public safety and, 20, 272, 279, 281 282, 283 gun proliferation, 284 285 Guyana, 18, 217, 220, 222 225, 233 tax reform, 222 225 H H1-B visas, 7, 278 Haar, Jerry, 295 301 Hammergren, Linn, 17, 298 Herzberg, Benjamin, 17 18, 299 Honduras, 53, 155, 180, 181, 218, 246, 268, 279, 281 283, 291 Humphrey, Christopher, 18, 297 I IMD Business School, 4 income inequality, 279 280 India, 4, 16, 22, 46, 105, 113 114, 116, 211, 295 infrastructure Brazil and, 167 Chile and, 152 154 Colombia and, 167 170 competitiveness and, 143 145
306 Index infrastructure (contd.) controversy surrounding funding, 156 cost recovery pricing model, 147 151 estimated investment requirements, 151 152 global investment in, 154 156, 166 public-private partnerships (PPPs) and, 146 147 reforms, 157 return on investment in, 152 water sector and, 145 146 innovation, 121 136 Buenos Aires and, 130 131 challenges facing, 123 126 Costa Rica and, 133 Curitiba and, 131 132 government and, 136 growth trends, 128 129 Havana and, 134 135 industry and, 136 local innovation systems, 130 Monterrey and, 135 patterns of, 122 123 philanthropists and, 136 Porto Alegre and, 132 rapid growth centers, 129 130 Recife and, 132 133 universities and, 135 136 urban areas and, 127 Uruguay and, 133 134 intellectual property rights (IPR), 11, 124, 128, 200, 202, 204, 205 208, 211 Inter-American Development Bank (IDB), 13, 22, 36, 42, 102, 143, 146, 166, 203, 240 Investment Climate Assessments, 18, 215 Italy, 3, 7, 88, 111, 278 J Juhn, Tricia, 18, 297 K Knight, Peter T., 19, 298 L labor reform, 239 250 employment rigidity and informality, 245 247 reforms and employment, 240 245 unionization, 247 248 legal reforms, 175 192 accomplishments, 176 178 balance of power issues, 190 191 impact paradoxes, 188 190 institutional accountability, 191 192 paradox of insufficient sector budget, 181 183, 183 188 corruption, 184 186 enforcement, 187 188 formalism vs. effective conflict resolution, 186 187 quantitative paradoxes, 179 181 regional reform movement, 176 logistics financing supply chain inefficiencies, 164 166 globalization and, 170 172 importance of, 163 164 infrastructure and, 166 170 obstacles to, 172 173 customs reform, 172 173 trucking regulations and lack of standards, 173 trust, 173 M Mara Salvatrucha, 14 Marques, Rosane A., 19, 298 Mexico COFEMER, 261 268 competitiveness, 17 18, 28 29, 30, 32 34, 36, 37, 39, 41, 42 credit and, 19, 79, 80 82, 83 84, 87, 90, 92, 93, 94 economic reforms, 64, 68, 72 education and, 48, 51 52, 53, 54, 57, 60 foreign direct investment (FDI) and, 277 278 formalization and, 202, 206 207, 209 210 infrastructure and, 152, 155, 156 innovation and, 125, 127, 128 129, 135, 137 labor reform, 244, 248 legal reforms, 186, 194
Index 307 logistics and, 164, 165, 166, 171 172, 173 174 migration and, 5 7 petroleum exports, 8 public safety and, 14, 20, 272, 273 274, 275 277, 279, 282 283, 284, 285, 287, 289, 290 regulatory reform, 253 269 bureaucracy and, 255 257 challenges facing, 257 266 deregulation, 254 255 tax reform, 18, 217, 220, 227 230, 232 technology and, 99, 101, 103 tourism, 276 Washington Consensus and, 9 10, 13 migration, 4 7, 37, 206, 264, 273, 278, 283, 291, 295 military rule, end of, 285 286 Morales, Evo, 88, 201 multilatinas, 1 N NAFTA, 41, 105, 116, 128, 174, 258 national transformation, 208 Nicaragua, 18, 47, 49, 155, 181, 217, 218, 220 222, 233, 281 tax reform, 220 222 Novo Mercado, 12, 73 O Odebrecht, 1 OECD (Organisation of Economic Co-operation and Development), 10, 48, 49, 51, 53, 60, 88, 103, 104, 108, 149, 157, 216 217, 244, 254, 258, 265, 297 Other Path, The (de Soto), 17, 200, 203, 298 P PCC (First Capital Command), 14, 25, 285 286 Pendle, George, 202 per capita income, 3, 7, 29, 258 260, 279, 283, 291 Perdigão, 16 Peru capital markets, 64 commodities and, 2, 295 competitiveness, 30, 33, 39, 41 credit and, 82, 85, 87 economic reforms, 18 infrastructure and, 144, 158 Internet and, 199 200 labor reform, 239, 241 242, 244, 246, 247 legal reforms, 185, 191, 193 logistics and, 173 property and, 201, 203, 209 210 public safety and, 13, 15, 20, 272, 281, 284, 289 regulatory reform, 260 tax reform, 219 Washington Consensus and, 9 PNCT&I, 105 109 police, ineffectiveness of, 286 287 populism, 1, 4, 9, 11, 87, 94, 290 Price, John, 20, 296 297, 299 productivity, 1 2, 14 15, 17 18, 28, 37, 45 46, 79, 86, 94, 100, 167, 179, 211, 224, 241, 243, 246, 250, 258, 275, 291, 299 300 public safety, 271 292 Caribbean and, 278 279 costs, 273 277 factors affecting, 279 289 drugs, 283 284 end of military rule, 285 286 gun proliferation, 284 285 idle teens and gang recruitment, 281 283 income inequality, 279 280 ineffective police, 286 287 subsidies and stipends, 280 281 foreign direct investment (FDI) and, 277 Medellín, Colombia and, 288 289 Mexico and, 275 277 potential obstacles to, 289 291 tourism and, 276 277 public-private partnerships (PPPs), 146 147 Puerto Rico, 144, 171 172 Puryear, Jeffrey, 16 17, 299
308 Index R regulatory reform, 253 269. See also COFEMER bureaucracy and, 255 257 challenges facing, 257 266 deregulation, 254 255 Mexico and, 261 268 remittances, 6, 22, 36 37, 41 42, 92 93, 273, 279 rule of law, 202 205 corruption, 204 205 creating formal legal and regulatory regime, 204 national transformation and, 208 results of imperfect law, 203 204 selling reform, 208 209 S Sabatini, Christopher, 18, 300 Sadia, 16 Salinas, Carlos, 9 Sarbanes-Oxley Act, 12 Schaefer, Clayton, 17, 298 Schaefer, Peter F., 17, 298 SELIC, 72 SMEs (small and medium-size enterprises), 11, 13, 24, 79, 85, 89 91, 94, 112 Smith, Adam, 211 Smith, Jan, 18 Snoeck, M., 133 134 South Korea economic growth, 80 education and, 48, 51, 52, 53, 55, 60 industry migration and, 5 infrastructure and, 144 IPR and, 211 public safety and, 291 technology and, 107 108, 115, 298 trade and, 16 Stiglitz, Joseph, 202 subsidies and stipends, 280 281 T Tablewski, Lee M., 19, 296 tariffs, 16, 17, 23, 41, 146, 148 151, 152 157, 205, 221 222, 224, 227, 229, 231, 254, 296 tax reform expenditure, taxes, competitiveness, and growth, 215 218 selected tax reform experiences, 219 232 Chile, 230 232 Ecuador, 225 227 Guyana, 222 225 Mexico, 227 230 Nicaragua, 220 222 tax policy trends, 218 219 Techint, 1 Telmex, 10, 87, 144 Tiffin, Scott, 19, 137, 298 Torero, M., 209 tourism, 14 15, 55, 133, 273, 275, 276 277, 278 transportation, 10, 12, 20, 130, 131, 132, 146, 151, 152, 163 170, 173 174, 230, 268, 283, 296 trucking regulations, 173 U unionization, 247 248 Uribe, Alvaro, 15, 286, 288, 290, 291 Uruguay competitiveness, 29, 31, 32 credit and, 81 economic growth, 63, 64 education and, 51, 53, 60 innovation and, 133 134 legal reforms, 177, 178, 181, 184 productivity and, 1 public safety and, 273 tax reform, 218 V Value Added Tax (VAT), 91, 219 220, 222, 225, 227, 229 230, 231, 233 Vargas Llosa, Alvaro, 206 VAT. See Value Added Tax Venezuela competitiveness, 31, 33, 34 credit and, 82, 88 economic reforms, 67, 295 296, 301 education and, 52, 54, 60 infrastructure and, 144 innovation and, 125, 128 labor reform, 241, 247 248
Index 309 legal reforms, 185, 191 migration and, 7 petroleum exports, 3, 16 populism and, 1 public safety and, 14 15, 20, 272, 274, 277, 284, 290 tax reform, 219 technology and, 99, 101 Washington Consensus and, 9 W Washington Consensus, 4, 9 15, 38, 42, 81, 201, 240 241, 247 Welch, John H., 18, 297 wine industry, 2 3, 133 134 World Bank capital flows and, 36, 38 capital markets and, 64 Doing Business Database, 17, 255 education and, 9, 47, 48, 49 foreign debt and, 8 infrastructure and, 9, 155 Investment Climate Assessments, 18 labor reform and, 244 legal reforms and, 177, 193 logistics and, 163, 166, 167 property and, 211 regulatory reform, 258, 261 tax reform and, 215 technology and, 102 trade and, 41 Washington Consensus and, 42 World Economic Forum, 3, 4, 45, 100, 215, 231 World Trade Organization (WTO), 4, 9, 10, 16, 31, 82 WTO. See World Trade Organization