This book presents insights from several countries in Latin America and beyond on how to organize critical sectors, such as education, roads and water, to improve quality, access and affordability. The innovative, multi-disciplinary studies in this volume discuss the outcomes of decentralization, school autonomy, participatory budgeting at the local level and other accountability mechanisms. Rich quantitative analyses are complemented and enhanced by insights from interviews and quotes from those on the front lines: politicians, bureaucrats and service providers; as well as a variety of case-studies focusing on wider political economy questions, on the intricacies of political competition and governance reform, and on public spending efficiency in countries as varied as Colombia, Peru, Chile and Uruguay. As the authors demonstrate, Latin America has much to share with the rest of the world in terms of governance and public service delivery experiments and learnings.

This book presents insights from several countries in Latin America and beyond on how to organize critical sectors, such as education, roads and water, to improve quality, access and affordability. The innovative, multi-disciplinary studies in this volume discuss the outcomes of decentralization, school autonomy, participatory budgeting at the local level and other accountability mechanisms. Rich quantitative analyses are complemented and enhanced by insights from interviews and quotes from those on the front lines: politicians, bureaucrats and service providers; as well as a variety of case-studies focusing on wider political economy questions, on the intricacies of political competition and governance reform, and on public spending efficiency in countries as varied as Colombia, Peru, Chile and Uruguay. As the authors demonstrate, Latin America has much to share with the rest of the world in terms of governance and public service delivery experiments and learnings.

With the exception of Sub-Saharan Africa, Latin America and the Caribbean has been one of the regions of the world with the greatest inequality. Inequality in Latin America and the Caribbean: Breaking with History? explores why the region suffers from such persistent inequality, identifies how it hampers development, and suggests ways to achieve greater equity in the distribution of wealth, incomes and opportunities. The study draws on data from 20 countries based on household surveys covering 3.6 million people, and reviews extensive economic, sociological and political science studies on inequality in Latin America. To address the deep historical roots of inequality in Latin America, and the powerful contemporary economic, political and social mechanisms that sustain it, Inequality in Latin America and the Caribbean outlines four broad areas for action by governments and civil society groups to break this destructive pattern: Build more open political and social institutions, that allow the poor and historically subordinate groups to gain a greater share of agency, voice and power in society. Ensure that economic institutions and policies seek greater equity, through sound macroeconomic management and equitable, efficient crisis resolution institutions, that avoid the large regressive redistributions that occur during crises, and that allow for saving in good times to enhance access by the poor to social safety nets in bad times. Increase access by the poor to high-quality public services, especially education, health, water and electricity, as well as access to farmland and the rural services. Protect and enforce the property rights of the urban poor. Reform income transfer programs so that they reach the poorest families.

When he began this book in early 2008, Guillermo Perry argued that developing countries remained highly vulnerable to external risks such as commodity price declines, capital flow reversals, and natural disasters. The economic crisis that has since ensued confirmed Perry's analysis. It has also made his proposal more important than ever: multilateral development banks (MDBs) should move beyond lending to provide innovative risk-management tools for developing countries to manage volatility. The risk that MDBs will fall into complacency as the short-term demand for traditional loans increases during the crisis should not deter innovations to ensure long-term stability.

Contents

1. Causes and Consequences of High Volatility in Developing Countries

2. The Role of Financial Insurance and Hedging

3. Dealing with Liquidity Shocks and the Procyclicality of Private Capital Flows

4. Dealing with Currency Risks

5. Dealing with Commodity Price, Terms of Trade, and Output Risks

6. Dealing with Natural Disaster Risks

7. Why Multilateral Development Bank Practices Are So Far from Their Potential

8. An Agenda Going Forward