Markets for Development: Improving Lives Through Competition

(with Matias Busso, Philip Keefer, Cezar Santos and Rodolfo Stucchi), December 2025

Latin America and the Caribbean has made major social and macroeconomic strides, yet growth and productivity remain weak. Markets for Development: Improving Lives through Competition argues that the regions core challenge is limited market competition. High market concentration, regulatory barriers, and weak enforcement of rules allow dominant firms to restrict entry, innovation, and opportunity. This book presents new evidence on how market power shapes firm behavior, employment, and inequality across sectors. It also demonstrates that reducing fragmentation, improving regulation, and strengthening competition policy can lower prices for consumers, raise productivity, create better jobs, and build fiscal capacity, making competition a central driver of development.

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CompeteLAC

(with Matias Busso, Philip Keefer, Cezar Santos and Rodolfo Stucchi), December 2025

The LAC’s first open-access platform with harmonized indicators on competition and market dynamics.

CompeteLAC website | CompleteLAC dataset

Chapter 6: Behind External Accounts

(with Leticia Juarez), March 2026

in “2026 Latin American and Caribbean Macroeconomic Report: Resilience and Growth Prospects in a Shifting Global Economy” (João Ayres and Luciana Juvenal)

Latin America and the Caribbean enters 2026 amid a complex global environment marked by heightened geopolitical tensions, shifting trade policies, and persistently high global interest rates that limit external support for growth. Even so, the region has shown resilience, with steady growth, strong labor markets, contained inflation, and low sovereign risk premia reflecting strengthened policy frameworks. As the 2026 Latin American and Caribbean Macroeconomic Report notes, significant challenges remain--including weak productivity growth, high public debt, and tight financing conditions--yet digitalization, artificial intelligence, and rising demand for critical minerals offer the region new growth prospects in a shifting global economy.

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Chapter 2: From Global Shifts to Regional Growth: Trade and FDI in Latin America and the Caribbean

March 2025

in “2025 Latin American and Caribbean Macroeconomic Report: Regional Opportunities Amid Global Shifts” (João Ayres, Alejandro Izquierdo and Eric Parrado)

Latin America and the Caribbean has achieved a series of milestones in the past years. Growth rates have returned to long-term averages, inflation has largely been contained, countries have taken steps toward fiscal consolidation, and unemployment rates are historically low. However, substantial risks remain, as the region navigates global trade fragmentation, financial market volatility, and uncertainty surrounding economic policies in the worlds major economies. The geopolitical realignment of trade and investment patterns offers countries an opening to capitalize on nearshoring and regional integration. To seize these opportunities, governments must focus on enhancing productivity, strengthening institutional frameworks, improving human capital, and investing in critical infrastructure. This report delves into key macroeconomic dimensions, assessing the economic outlook, regional integration in trade and foreign direct investment, labor market informality, fiscal and monetary policies, and financial markets. By addressing its macroeconomic challenges head-on and embracing forward-looking reforms, Latin America and the Caribbean can chart a course toward greater prosperity and resilience for all its citizens.

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Chapter 4: Risks to External Accounts

April 2022

in “2022 Latin American and Caribbean Macroeconomic Report: From Recovery to Renaissance: Turning Crisis into Opportunity” (Eduardo Cavallo, Arturo Galindo, Victoria Nuguer and Andrew Powell)

Economic growth in Latin America and the Caribbean was stronger than expected in 2021 but waned at the start of 2022. High commodity prices due to the war between Russia and Ukraine will provide a boost to exporters, while imposing significant costs on commodity importers and pushing up inflation across countries. The ongoing conflict, together with policy normalization in advanced economies, carries significant risks for the region. Volatility in financial markets could depress investment and bring down growth further. Policymakers need to take urgent measures to boost inclusive growth. As minor fixes are unlikely to result in notable benefits, governments should consider more fundamental resets of policy frameworks. This report analyzes growth prospects, monetary policy, and external and financial sectors. The recommendations stress the need for a new architecture for both fiscal and labor market policies. Policymakers should seize the window of opportunity provided by the COVID-19 crisis and global security concerns to improve the outlook for the region.

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Chapter 7: Global and Regional Value Chains: Risks and Opportunities

March 2021

in “2021 Latin American and Caribbean Macroeconomic Report: Opportunities for Stronger and Sustainable Postpandemic Growth” (Eduardo Cavallo and Andrew Powell)

The year 2020 will be remembered as one of the most challenging in modern history. Latin America and the Caribbean lost 7.4% of GDP, the largest drop on record in a single year. The region is expected to recover in 2021 but faces a hazardous time ahead. Most countries will require some type of adjustment to maintain fiscal sustainability. While the way forward will be challenging, this report not only details the risks but also outlines a set of policies that should help countries realize a stronger recovery, not just to the low growth rates of the pre-pandemic period, but to higher rates of growth that will benefit all, with more efficient public policies, higher productivity in the private sector, and more sustainable economies.

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Chapter 11: Managing Private Debt

(with María Cecilia Acevedo and Joaquin Lennon Sabatini), January 2023

in “Dealing with Debt: Less Risk for More Growth in Latin America and the Caribbean” (Andrew Powell and Oscar Valencia)

Debt has risen around the world, and Latin America and the Caribbean is no exception. Total debt has grown to US$5.8 trillion, or 117 percent of GDP, for the region and as much as 140 percent of GDP for its five largest economies. Public debt soared to over 70 percent of GDP during the pandemic, and corporates issued substantial amounts to survive the crisis. While the spending that led to this debt helped the region weather the pandemic, it is now weighing down the economy. This book examines the rise in debt in Latin America and the Caribbean and offers recommendations to policymakers to ensure debt is used wisely, avoid the harmful impacts, manage high debt levels well, and bring down debt where it is too high. It is hoped that the analyses and policy suggestions in this volume contribute to successfully confronting the challenges, lowering risk, boosting growth, and improving living standards across the region and beyond.

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