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Better Neighbors

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Better Neighbors

Toward a Renewal of Economic Integration in Latin America

World Bank,

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Economic growth, particularly in Latin America, depends on geographic as well as digital connections.

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Editorial Rating

8

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  • Analytical
  • Innovative

Recommendation

Governments in Latin America and the Caribbean are exploring ways to boost growth, reinvigorate their economies and achieve a global presence through “open regionalism,” a form of geographic economic integration. The process is multifaceted and complex, but with careful execution, it can yield long-term benefits, according to this prescriptive report from economists Chad P. Bown, Daniel Lederman, Samuel Pienknagura and Raymond Robertson. getAbstract recommends this study for its thorough and provocative analysis to policy makers and executives.

Summary

A slump in economic activity since 2010 in Latin America and the Caribbean (LAC) argues for renewed efforts to promote growth. The results of regional integration in places like East Asia and the Pacific demonstrate that strong geographical alliances work. Agreements in LAC, such as the 2012 Pacific Alliance among Chile, Columbia, Mexico and Peru, are a step in that direction. However, the strategy followed in implementing integration is critical to achieving the desired growth results. In particular, governments need to direct the formation of regions as building blocks for ...

About the Authors

Chad Bown et al. are economists.

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