INSEAD Library

Digitized

The Latin America Competitiveness Review 2006 Paving the Way for Regional Prosperity Contents Preface by Klaus Schwab v 2.8 NAFTA: 12 Years of Mexico's Experience ...............................67 by Rene Villarreal Executive Summary by Augusto Lopez-Claros PART 1 vii 2.9 Can Latin American Countries Win in the World.....................71 Trade Stakes? by Carlos Arruda 2.10 Prudential and Regulatory Challenges for Latin America...................................................................... 75 by David Hoelscher ASSESSING LATIN AMERICAN COMPETITIVENESS: CHALLENGES AND OPPORTUNITIES....................................................................... 1 by Augusto Lopez-Claros, Laura Altinger, Jennifer Blanke, Margareta Drzeniek, and Irene Mia Introduction........................................................................................3 Measuring the current competitive landscape in Latin America: The Global Competitiveness Index...................... 4 Macroeconomy.................................................................................. 6 Institutions ...................................................................................... 12 Infrastructure .................................................................................. 16 Health and primary education..........................................................19 Higher education and training..........................................................19 Market efficiency............................................................................. 20 Technological readiness.................................................................. 25 Business sophistication .................................................................. 28 Innovation ....................................................................................... 29 Conclusions..................................................................................... 33 PART 2 2.11 Latin American Multinationals................................................ 79 by Laura Alfaro and Eliza Hammel 2.12 Innovation in Latin America.................................................... 83 by Felipe Larrain PART 3 COUNTRY PROFILES...................................................................... 87 How country profiles work.............................................................. 89 Argentina.........................................................................................92 Bolivia............................................................................................. 96 Brazil .............................................................................................. 100 Chile................................................................................................ 104 Colombia......................................................................................... 108 Costa Rica.......................................................................................112 Dominican Republic ....................................................................... 116 Ecuador...........................................................................................120 El Salvador......................................................................................124 Guatemala.......................................................................................128 Guyana............................................................................................132 Honduras.........................................................................................136 Jamaica...........................................................................................140 Mexico.............................................................................................144 Nicaragua........................................................................................148 Panama...........................................................................................152 Paraguay ........................................................................................156 Peru................................................................................................ 160 Trinidad and Tobago....................................................................... 164 Uruguay...........................................................................................168 Venezuela....................................................................................... 172 ESSAYS ON SELECTED ISSUES.................................................... 37 2.1 Fiscal Policy in Latin America: Where Do We Stand?............ 39 by Pablo Guidotti 2.2 Latin America and the External Environment: A Missed Opportunity?............................................................. 43 by Mario Blejer 2.3 Chavismo vs. Chilenismo.......................................................... 47 by Moises Nairn 2.4 Is Latin America Moving Left?.................................................. 51 by Arturo Valenzuela 2.5 The Politics of Policies............................................................... 55 by Ernesto Stein 2.6 Poverty Reduction and Growth in Latin America: Virtuous and Vicious Circles....................................................59 by Guillermo Perry, Humberto Lopez, William Maloney, Omar Arias, and Luis Servén About the Authors Partner Institutes Acknowledgment 176 179 180 2.7 Mercosur's Identity Crisis .......................................................... 63 by Paulo Roberto de Almeida