Economic Development in Central America Vol. 2 : Structural Reforms

by Larrain B., Felipe; John F. Kennedy School of Government

• ISBN13: 9780674003569
• ISBN10: 067400356X
• Format: Paperback
• Copyright: 2001-02-01
• Publisher: Harvard Univ Pr

Summary

For decades, Central America has faced market dependency, natural disasters, and political systems characterized by protectionist policies and low participation--situations that have had a tremendous impact on its economic development. This two-volume set is a comprehensive assessment of Central America's position in the world economy, and it serves as a handbook for the important economic reforms Central America must undertake to become a viable competitor in the international economy.

Table of Contents

Preface	xi
Contributors	xiii
VOLUME II
Fiscal Policy Reforms in Central America	1	(31)
Gerardo Esquivel
Felipe Larrain B.
Introduction	1	(1)
Background	2	(7)
Revenues	9	(8)
Expenditures	17	(7)
Deficit Financing and Debt Policy	24	(5)
Conclusions	29	(2)
References	31	(1)
Infrastructure Services: Moving Goods, People, and Ideas Effectively	32	(34)
Luis F. Lopez-Calva
Introduction	32	(3)
Infrastructure, Growth, and Development	35	(4)
Infrastructure in the Region	39	(12)
Private Participation in Infrastructure: A Promising Source of Financing	51	(7)
The Case of the Central American Pacific Corridor: The Quest for an Integrated Transport Policy	58	(3)
Concluding Remarks	61	(2)
References	63	(3)
Privatization: Fostering Economic Growth Through Private Sector Development	66	(41)
Felipe Larrain B.
Luis F. Lopez-Calva
Introduction	66	(1)
Privatization in the Region: A Preliminary Assessment	67	(3)
Does Ownership Matter?	70	(5)
Successful Privatization and Ways to Pursue It	75	(5)
The Privatization Experience in the Region	80	(12)
On Privatization Methods: The Good, the Bad, and the Ugly	92	(5)
Existing Evidence on the Benefits of Privatization in Central America	97	(2)
The Unfinished Agenda of Privatization in the Region	99	(1)
Concluding Remarks	100	(2)
References	102	(3)
Appendix: A Simple Model of the Soft Budget Constraint	105	(2)
Deregulating Telecommunications in Central America	107	(50)
Pedro Raventos
Introduction	107	(1)
Regulation and Competition in Telecommunications	108	(7)
Telecommunications in Central America	115	(10)
Designing Telecommunications Reform in Central America	125	(11)
Implementation of Telecommunications Reform	136	(12)
Conclusions and Lessons	148	(2)
References	150	(3)
Appendix: U.S. Policy on International Settlements	153	(4)
Building Electricity Markets in Central America	157	(58)
Pedro Raventos
Gonzalo Carrillo
Introduction	157	(1)
Forms of Competition in the Electricity Sector	158	(18)
Introducing Private Generation in Central America	176	(13)
Designing Electricity Markets in Central America	189	(12)
Experience with the Market	201	(11)
References	212	(3)
Poverty and Social Policies	215	(32)
Rodrigo Cifuentes
Luis F. Lopez-Calva
Introduction	215	(1)
Social Policies and Poverty: The Challenge of Human Development	216	(2)
Framework for Social Policy Analysis	218	(2)
Poverty in Central America: An Assessment	220	(4)
Social Dimensions: Current Situation	224	(11)
Social Policy Evaluation and Policy Recommendations	235	(5)
The Move from Generalized to Targeted Subsidies in the Alleviation of Poverty	240	(2)
Conclusion	242	(1)
References	243	(4)
Education in Central America	247	(22)
Benjamin Alvarez
Joan Dassin
Larry Rosenberg
David Bloom
The Regional Context	247	(4)
Education in Central America: Achievements and Challenges	251	(8)
New Directions and Strategic Programs for Education Reform	259	(7)
Conclusion	266	(1)
References	267	(2)
Reducing the Vulnerability toNatural Disasters: Hurricane Mitch and Central America	269	(39)
Juan Carlos Barahona
Eduardo Doryan
Felipe Larrain B
Jeffrey Sachs
Introduction	269	(1)
Social Debt and Environmental Debt: The Achilles Heel	270	(2)
Central America's Propensity for Disasters	272	(1)
The Fury of Hurricane Mitch	272	(3)
The Need for Transformation and a Reconstruction Agenda in Central America	275	(2)
Expanded Safety Net	277	(1)
Basic Social Safety Net	278	(4)
Environmental Safety Net	282	(7)
Economic and Productive Safety Net	289	(12)
Lessons Learned	301	(4)
Conclusions	305	(1)
References	306	(2)
Prospects for Pension Reform in Central America	308	(46)
Rodrigo A. Cifuentes S.
Felipe Larrain B.
Introduction	308	(3)
The Problem with Traditional Schemes and the Central American Reality	311	(2)
Administrative Costs in Privatized Pension Systems	313	(5)
Pension Reform and Financial Market Development	318	(5)
Fiscal Transition	323	(1)
A Reform Proposal for Central America	324	(12)
Conclusion	336	(1)
References	337	(2)
Appendix: Pension Systems in Central America	339	(15)
Financial Market Reform	354
Rodrigo Cifuentes S
Introduction	354
Central American Financial Markets in International Perspective	356
Financial Markets and Economic Development	361
Financial Markets Regulation and Institutional Design	365
Condition of Financial Markets	372
Conclusions and Policy Recommendations	390
References	392