Understanding the Poverty Impact of the Global Financial Crisis in Latin America and the Caribbean

Any time there is an economic crisis; there is the very real potential that its consequences for human welfare will be severe. Thus when the developed world plunged into such a crisis in 2008 and growth rates in Latin America and the Caribbean (LAC) began to plummet, fears rose that the region will suffer rising unemployment, poverty, malnutrition, and infant mortality, among other things. This study confirms and quantifies many of the sobering links between crisis and poverty, but it also shows how powerful good policy in stable times is in attenuating those links. It thus underscores the need for sound growth policies, good macro prudential care, fiscal balance, low debt, reasonably flexible exchange rates, and the like to help prevent and manage crises. It equally shows how effective social protection responses built on adequate existing programs can be. This study documents the effects of the 2008-09 global financial crisis on poverty in 12 countries in the LAC region, and it comes away with six big picture messages, each with much nuance and many caveats that are explained briefly in this overview.

Bibliographic Details

Main Authors:	Grosh, Margaret, Bussolo, Maurizio, Freije, Samuel
Language:	English en_US
Published:	Washington, DC: World Bank 2014-06-18
Subjects:	ACCOUNTING, ACTIVE LABOR, ACTIVE LABOR MARKET, ACTIVE LABOR MARKET POLICY, ADVISERS, AGGREGATE DEMAND, AGGREGATE EMPLOYMENT, AGGREGATE OUTPUT, ANNUAL CHANGE, ANNUAL GROWTH, ANNUAL GROWTH RATE, AVERAGE GROWTH, AVERAGE INCOME, AVERAGE INCOME GROWTH, AVERAGE PRODUCTIVITY, AVERAGE WAGES, BANKING CRISES, BANKING SYSTEMS, BASIS POINTS, BENCHMARK, BENEFICIARIES, BORROWING, BORROWING REQUIREMENTS, CAPITAL MARKETS, CASH TRANSFER, CASH TRANSFERS, CD, CENTRAL BANKS, COMPENSATORY MEASURES, CONSUMER PREFERENCES, CROSS-SECTIONAL DATA, CURRENCY CRISES, CURRENCY MISMATCHES, DATA SETS, DEBT, DEBT CRISIS, DEBT MARKETS, DEMAND CURVES, DEVELOPED COUNTRIES, DEVELOPED WORLD, DEVELOPING COUNTRIES, DEVELOPING REGIONS, DEVELOPMENT BANK, DEVELOPMENT ECONOMICS, DEVELOPMENT INDICATORS, DEVELOPMENT POLICY, DEVELOPMENT REPORT, DISTRIBUTIONAL IMPACT, DRIVERS, EARNINGS LOSS, ECONOMIC ACTIVITY, ECONOMIC CONDITIONS, ECONOMIC DOWNTURNS, ECONOMIC GROWTH, ECONOMIC POLICY, ECONOMIC SHOCK, ECONOMICS, ECONOMICS RESEARCH, ELASTICITY, ELASTICITY OF SUBSTITUTION, EMERGING ECONOMIES, EMPLOYMENT GROWTH, EMPLOYMENT PROGRAM, EMPLOYMENT SERVICES, EQUILIBRIUM, EXCHANGE RATE, EXCHANGE RATES, EXPENDITURE, EXPLAINING CHANGES, EXPORTS, EXTERNAL FACTORS, EXTREME POVERTY, FACTOR MARKETS, FEMALE EMPLOYMENT, FINANCIAL ASSETS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL SYSTEMS, FISCAL POLICY, FIXED INVESTMENT, FLEXIBLE EXCHANGE RATES, FORECASTS, FOREIGN CURRENCY, FOREIGN CURRENCY DEBT, FOREIGN EXCHANGE, FOREIGN INVESTMENT, GDP, GDP DEFLATOR, GDP PER CAPITA, GENERAL EQUILIBRIUM, GENERAL EQUILIBRIUM MODELS, GOVERNMENT DEBT, GOVERNMENT EXPENDITURES, GROSS DOMESTIC PRODUCT, GROWTH POLICIES, GROWTH RATES, HEALTH CARE, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HUMAN DEVELOPMENT, INCOME DISTRIBUTION, INCOME GROUPS, INCOME INEQUALITY, INCOME SUPPORT PROGRAM, INCREASE POVERTY, INEQUALITY MEASURES, INFANT MORTALITY, INFORMAL SECTOR, INSURANCE, INTERNATIONAL BANK, INTERNATIONAL ECONOMICS, INTERNATIONAL FINANCE, INTERNATIONAL TRADE, INVESTMENT FUND, JOB DESTRUCTION, JOB LOSSES, JOBS, LABOR ADJUSTMENT, LABOR DEMAND, LABOR ECONOMICS, LABOR FORCE, LABOR MARKET, LABOR MARKET ADJUSTMENT, LABOR MARKET PERFORMANCE, LABOR MARKET POLICY, LABOR MARKET PROGRAMS, LABOR MARKET VARIABLES, LABOR MARKETS, LABOR PRODUCTIVITY, LABOR PROGRAM, LABOR SUPPLY, LABOR SURVEYS, LABOUR, LIQUIDITY, LIVING STANDARD, LOCAL CURRENCY, MACROECONOMIC POLICIES, MACROECONOMIC VARIABLES, MATHEMATICS, MEASURING POVERTY, MICRO MODEL, MICRODATA, MONETARY FUND, MONETARY POLICY, NATIONAL ACCOUNTS, NEGATIVE IMPACT, NET EXPORTS, OCCUPATION, OUTPUT PER CAPITA, PENSION, PENSIONS, PER CAPITA GROWTH, PER CAPITA INCOME, PERMANENT EMPLOYMENT, POLICY ANALYSIS, POLICY DEBATE, POLICY MESSAGES, POLICY OPTIONS, POLICY RESPONSE, POLICY RESPONSES, POPULATION GROUP, POPULOUS COUNTRIES, POVERTY CHANGES, POVERTY GAP, POVERTY IMPACT, POVERTY INCREASES, POVERTY LEVELS, POVERTY LINES, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, PREVIOUS ONES, PRIVATE TRANSFERS, PRODUCTIVITY, PUBLIC EMPLOYMENT, PUBLIC EMPLOYMENT SERVICES, PUBLIC SECTOR, PUBLIC SECTOR BORROWING, PURCHASING POWER, REAL GDP, REAL WAGES, RECESSION, REDUCED POVERTY, REGULATORY FRAMEWORKS, REMITTANCES, RENTS, RETURNS, RISING UNEMPLOYMENT, SAVINGS ACCOUNT, SIGNIFICANT IMPACT, SKILL TYPE, SOCIAL DEVELOPMENT, SOCIAL PROTECTION, SOCIAL SECURITY, TEMPORARY EMPLOYMENT, TEMPORARY INCOME SUPPORT, TOTAL FACTOR PRODUCTIVITY, TRADE LIBERALIZATION, UNEMPLOYED, UNEMPLOYMENT, UNEMPLOYMENT BENEFITS, UNEMPLOYMENT COMPENSATION, UNEMPLOYMENT INSURANCE, UNEMPLOYMENT INSURANCE PROGRAMS, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, UNSKILLED WORKERS, VALUE ADDED, WAGE BILL, WAGES, WELFARE IMPACT, WORKER, WORKING HOURS, YOUTH UNEMPLOYMENT, YOUTH UNEMPLOYMENT RATE,
Online Access:	http://documents.worldbank.org/curated/en/2014/06/19702913/understanding-poverty-impact-global-financial-crisis-latin-america-caribbean https://hdl.handle.net/10986/18727
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