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Independent research & practical ideas for global prosperity
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Independent research & practical ideas for global prosperity
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 Liliana Rojas-Suarez is a senior fellow at the Center for Global Development with expertise on Latin America and on financial services and the development impact of global financial flows. Full BioShowing posts on the Views from the Center blog. View author posts on: Connecting with Central America through ResearchJuly 5, 2011By Liliana Rojas-Suarez in Global Development, Inequality, Latin America, Poverty Tags: Central America, Inequality, Poverty
Central America experienced almost a decade of economic progress between 2003 and 2008, when GDP per capita growth averaged 3 percent per year. Yet the region’s five countries–Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua–still lag other middle income economies. Their high dependence on their primary commodities and the U.S. economy makes the growth slow and volatile. Even more worrying are high levels of poverty and inequality. Significant structural changes are urgently needed to secure sustained and inclusive growth. Yet despite these countries’ pressing development issues, attention to their problems is often eclipsed by interest in Latin America’s larger economies, especially Mexico. Comment »Avoiding a Credit Bubble in Latin America: Unconventional Measures for Extraordinary TimesJune 16, 2011By Liliana Rojas-Suarez in Financial Crisis, Global Development, International Financial Institutions Tags: Capitol Flows/Financial Crisis, CLAAF, debt crisis, IMF, International Financial Institutions, Latin America
Recently the Latin American Shadow Financial Regulatory Committee (CLAAF), over which I preside, held its bi-annual meeting at CGD and issued its 24th statement. Among the CLAAF members that participated were several renowned economists, including Guillermo Calvo, Carmen Reinhart, Pablo Guidotti, Guillermo Ortiz and Roque Fernandez. This time, the Committee advanced several “outside-of the box” recommendations to address a well-known problem: the eruption of bubbles in Latin American financial systems resulting from large capital inflows from developed economies. I am happy to report that the presentation of the statement was very well received and brought about a lively debate, especially on several recommendations that can be considered controversial. Several media organizations from Latin America also covered CLAAF’s statement, and it is notable that they emphasized the most novel recommendations. (Two examples of press coverage in Spanish are hereand here) Comment »Restoring U.S. Financial Markets in a Credible Way: Comments on Feldstein and YellenJanuary 27, 2011By Liliana Rojas-Suarez in Capitol Flows/Financial Crisis, Global Development Tags: Capitol Flows/Financial Crisis, China
From January 6-9, I participated in the annual ASSA (Allied Social Science Associations) conference in Denver, Colorado. I was part of a high-level panel discussion with a number of distinguished economists including Janet Yellen, the Federal Reserve’s Vice-Chair; Martin Feldstein, of Harvard University; Andrew Brimmer, former Governor of the Federal Reserve Board; and Alan Krueger, former Assistant Secretary for Economic Policy, among others. The discussion focused on the economic policies undertaken during the Obama administration. Perhaps the most interesting presentations on these issues were given by Yellen and Feldstein. Here I briefly summarize their main points and the comments that I delivered during the panel discussion. Read More… Comment »The Currency War: Risks for Latin America and the Role of Central BanksJanuary 7, 2011By Liliana Rojas-Suarez in Capitol Flows/Financial Crisis, Global Development Tags: BRIC, CLAAF, G-20
During the 13th and 16th of November, the Latin American Shadow Financial Regulatory Committee (CLAAF) held their second meeting of the year in Lima with the purpose of discussing the effect of the currency wars on the Latin American region. As a result of the meeting, we presented the 23rd CLAAF statement. The statement has been extremely well received and broadly covered by the Peruvian press. The members of CLAAF that participated in the meetings were: Comment »Currency Wars Are a Development Problem and the G-20 Has a Major Role to Play in the SolutionOctober 25, 2010By Liliana Rojas-Suarez in Capitol Flows/Financial Crisis, Global Development Tags: Currency Wars, G-20, IMF
Last weekend’s communiqué from the G-20 finance ministers is a first step to bridge the divide in the ongoing currency wars. I find both hope and disappointment in the Communiqué. It is very positive that the G-20 ministers have called for the IMF to help identify countries with policies leading to large and unsustainable imbalances. This is a step in the right direction, although no specific quantitative indicators have yet been advanced. Even better, in my opinion, is the Communiqué’s decision to shift IMF voting powers toward unrepresented developing countries, which would greatly increase the chances of resolving the currency wars. 1 Comment »New IMF Database on Financial Access IndicatorsJuly 6, 2010By Liliana Rojas-Suarez in Global Development Tags: Financial Access, IMF, World Bank
I am encouraged by the IMF launch last week of a new online database of financial access indicators. When the initiative was announced at 2009 World Bank/IMF annual meetings in Istanbul, I wrote of the potential and need for such a database. This new resource will be an important tool for increasing financial inclusion. I’m glad that the IMF has followed through on commitments made last year. Read More… Comment »Policy Principles for Financial Access: The G-20 and the Center for Global DevelopmentJune 29, 2010By Liliana Rojas-Suarez in Global Development Tags: Financial Access, G-20, G8
I heartily applaud the release of the G-20 Principles for Innovative Financial Inclusion (click and scroll down to see them). At a time of increased focus on financial sector regulation to reduce risk, it is crucial that we not lose sight of the fact that increasing access to appropriate financial services remains essential to reducing poverty and achieving sustained growth. To this end, last October CGD released Policy Principles for Expanding Financial Access, a report by a task force of independent experts on the issues of financial inclusion and regulation. Read More… Comment »Exuberance Tempered by Political Worries at Latin America World Economic ForumApril 12, 2010By Liliana Rojas-Suarez in Global Development
On April 6-8, I participated in the World Economic Forum on Latin America, which this year took place in beautiful Cartagena, Colombia. The meetings convened about 600 leaders from industry, government and civil society from over 40 countries. It included the participation of 6 Presidents from the region. I spoke in two panels on: (a) the impact of newly proposed international financial regulation on the stability of Latin America’s financial systems and (b) the development of local capital markets. Perhaps the most distinguishing feature of the meetings (and especially during coffee breaks and other social interactions) was the optimism among investors regarding the economic prospects of the region. The prevailing view among investors was that Latin America had been able to deal with the global financial crisis effectively. A point often underlined: contrary to previous episodes of adverse external shocks, this time not a single financial system in the region experienced a crisis. Read More… Comment »Banks Raise Risky Holdings under the Eyes of SupervisorsDecember 1, 2009By Liliana Rojas-Suarez in Capitol Flows/Financial Crisis, Financial Crisis, Global Development, International Financial Institutions Tags: Finance, International Financial InstitutionsThe Financial Times published my letter to the editor last week responding to Gillian Tett’s article “Will sovereign debt be the new subprime?” I elaborated on the risks of increasing public debt in the U.S. and other developed countries, and warned that mere perception of an excessive supply of sovereign debt can reduce the real value of that debt. Here’s my letter: Read More… Comment »CGD Task Force Supports IMF Financial Access InitiativeOctober 5, 2009By Liliana Rojas-Suarez in Capitol Flows/Financial Crisis, Financial Crisis, International Monetary Fund Tags: Financial Access, IMF
This timely Dutch-funded initiative provides for the regular collection and sharing of national data on the geographic and demographic reach of financial services. Such data will be invaluable to policymakers around the globe, who increasingly recognize that access to financial services—secure savings, credit, insurance, even such seemingly simple things as checking accounts—is critical to equitable growth and poverty reduction. Read More… Comment »Just in Time: New CGD Task Force Report on Principles for Expanding Financial AccessSeptember 30, 2009By Liliana Rojas-Suarez in Global Development, Microfinance Tags: Finance, Financial AccessRecent developments have brought to the front the importance and relevance of the Center’s extensive work on improving access to financial services in developing countries, where a very large proportion of households and firms lack such access. First, in the Pittsburgh Summit Communiqué, the G-20 pledged to: Read More… Comment »The Expanding Role of the Fed and Why It Matters for DevelopmentJuly 27, 2009By Liliana Rojas-Suarez in Capitol Flows/Financial Crisis, Economic Growth, Global Development Tags: Federal Reserve
2 Comments »U.S. Financial Crisis Will Mean Slower Growth, Rising Inequality in Developing World (Development Impacts of Financial Crisis)September 22, 2008By Liliana Rojas-Suarez in Capitol Flows/Financial Crisis, Financial Crisis, Migration and Labor Mobility
7 Comments »Resolution of Argentina’s Financial CrisesMay 5, 2002By Liliana Rojas-Suarez in Financial Crisis, Latin America Tags: CLAAF, Financial Crisis, Latin AmericaAware of the crucial importance for Latin America of reaching a prompt and effective solution to the current financial problems in Argentina, this statement reflects the assessment and recommendations of the Latin American Shadow Financial Regulatory Committee (LASFRC) for moving towards that end. The statement has three parts. First, it identifies the major features and problems facing the Argentine banking system. Second, it assesses alternatives for crisis resolutions. Third, it advances on general lessons applicable to the region. Access complete commentary in PDF Comment »
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In a recent interview on 
For many developing countries, the U.S. credit crisis will mean slower growth and rising inequality. The effects will be protracted, and not all will show up at the same time. And the nature and degree of impact will vary widely. Some countries, notably those with extensive foreign exchange reserves and strong fiscal positions, will be much better able to cope than others. But overall the crisis is very bad news for developing countries and especially for the poor.
