Resumen de One Region, Two Speeds? Challenges of the New Global Economic Order for Latin America and the Caribbean

Alejandro Izquierdo (coord.), Ernesto Talvi (coord.)

• The aftermath of the global financial crisis has reshaped world growth and demand patterns, leading to a two-speed recovery, with slow growth in industrial countries and fast growth in emerging markets. This new global scenario is defining a constellation of global macroeconomic conditions that has very different implications for subsets of countries in Latin America and the Caribbean. The report conveys three key messages: first, in this new global economic environment, key structural characteristics of Latin America and the Caribbean countries are defining two quite different regional clusters in terms of opportunities and challenges ahead. Second, substantial changes in trade and capital flow patterns, as well as in the international financial architecture, are already taking place and will impact the regional clusters in different ways. Third, economic policy design will have to accommodate these differences in order to ensure widespread and stable growth.

  This report was coordinated by Alejandro Izquierdo and Ernesto Talvi, with contributions from Eduardo Fernández-Arias, Eduardo Lora, Mauricio Mesquita-Moreira, Ignacio Munyo, Andrew Powell, and Alessandro Rebucci1. The views expressed in this report do not necessarily reflect those of the management of the Inter-American Development Bank or of its Board of Directors.