China Risks, Unlike Mexico Tariffs, Aren't Vanishing

June 11, 2019

John Authers - Bloomberg

...Which countries will manage to notch the fastest growth over the next decade? Nobody can know for certain, but Harvard’s Center for International Development has gone to great lengths to try to find out. Its key insight is that growth hinges on economic complexity. The more different skills a population has developed, and the more adaptable its economy, the better its chances of expansion. The more dependent it remains on one industry, the harder it is to achieve growth. It measures this phenomenon in a fascinating and public...

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Don't Blame Washington for Venezuela's Oil Woes: A Rebuttal

May 2, 2019

Ricardo Hausmann and Frank Muci - Americas Quarterly

On August 2017, the White House imposed financial sanctions on Venezuela, limiting its access to U.S. financial markets. Shortly after, Venezuela’s economy and oil sector collapsed. ​Economists Mark Weisbrot, co-director of the Center for Economic and Policy Research, and Jeffrey Sachs conclude​ ​that the sanctions caused the collapse and human suffering that followed. Is this persuasive?...

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Indonesia and the Quest for 7% Growth: Overpromise or Underperformance?

April 16, 2019

By Timothy Cheston 
Visualizations by: Nil Tuzcu

Indonesians head to the polls for presidential and legislative elections on April 17, in what is traditionally billed as a clash of titans in the world’s third largest democracy. This time around, voters will find familiar names on the presidential ballot, as Joko Widodo, or Jokowi, faces Prabowo Subianto in the same billing as the 2014 election, with the one exception of Jokowi now having the incumbency of the presidency behind him. If current polls hold, the election appears less of a rematch than a watered-...

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Understanding Venezuela's Collapse

February 12, 2019

Ricardo Hausmann - Harvard Gazette

Thousands of angry demonstrators in Venezuela took to the streets again this week to protest the government of President Nicolás Maduro, two weeks after he was sworn in for a second term following an election that many critics say was rigged. The protests were organized by opposition leader Juan Guaidó, president of the National Assembly, who has declared himself acting president.

Once one of the richest countries in Latin America with the world’s largest oil reserves, Venezuela has been in political, economic, and...

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The Case for the Albanian Investment Corporation

February 6, 2019

To support the growth strategy of Albania, to improve employment rates and the general well-being of its society, the Government of Albania (GOA) has been working since fall 2017 to develop a mechanism that could ensure timely preparation of needed investment projects and their financing under adequate conditions.

After a thorough due diligence process during 2018, and careful evaluation of different...

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How Not to Fight Income Inequality

November 14, 2018

Ricardo Hausmann - Project Syndicate

Trying to combat income inequality through mandated wage compression is not just an odd preference. It is a mistake, as Mexico's president-elect, Andrés Manuel López Obrador, will find out in a few years, after much damage has been done.

Suppose two people hold different opinions about a policy issue. Is it possible to say that one is right and the other wrong, or do they just...

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The Albanian Miracle

September 27, 2018

Ricardo Hausmann - Project Syndicate

Five years ago, Albania faced a truly ominous situation. With Greece and Italy reeling from the euro crisis, remittances and capital inflows were falling and the economy suffered a severe slowdown. The fiscal deficit ballooned to over 7% of GDP, financed to a large extent by arrears, as access to external financial markets had collapsed and domestic interest rates were sky high.

In addition, the...

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