Oil Prices and the Future of Petrocaribe

Oil Prices and the Future of Petrocaribe

On June 2005, upon the initiative of late Venezuelan President Hugo Chavez, the governments of Antigua and Barbuda, Bahamas, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname and Venezuela, agreed on the creation of Petrocaribe, a Cooperation Agreement to strengthen energy security in […]

Boot Camps to Kick-Start Public-Private Partnerships in the Caribbean

The concept of public-private partnerships is in vogue in the Caribbean. Some governments mistakenly believe that PPPs allow the private sector to build and maintain infrastructure like roads, and provide public services like wastewater treatment, with little cost to the public sector. This is not the case. However, in certain PPP projects, private-sector efficiencies can […]

Greening Corporate Value Chains Lowers Environmental Impact and Lifts Competitiveness

  Adidas, one of the world’s top two sportswear manufacturers, recently ended its business relationship with 13 of its Asian suppliers as a result of their severe or repeated noncompliance with labor, health, and safety workplace standards at their factories. This is one example of large multinational corporations working harder to demonstrate to their ever-more-demanding stakeholders that […]

An Alternative Anti-Drug Policy: Economic Resilience

An Alternative Anti-Drug Policy: Economic Resilience

 From the Multilateral Investment Fund Trends blog Latin America and the Caribbean is the most violent region in the world, with no fewer than five of its major cities experiencing more than 100 homicides per 100,000 people each year, according to the most recent Global Study on Homicide. While the pattern of violence varies across different […]

Capital Flows, Credit Booms and Bank Crises

Studies of the impact of capital inflows have established that debt inflows can lead to bank crises (see here and here). Unlike equity, payments on debt are contractual and can not be cancelled if there is an economic downturn, which intensifies any shocks to the financial system. In the case of short-term debt, a foreign lender may decide […]

Global Volatility, Domestic Markets

Unlike the global financial crisis of 2008-09, the current disruption in the financial markets of emerging market nations was anticipated. The “taper tantrum” of 2013 revealed the precarious position of many of these nations, particularly those dependent on commodity exports. The combination of a slowdown in Chinese growth, collapsing stock prices and a change in the […]

Small Is Beautiful… but Vulnerable!

Many small states are known for their pristine natural environments and are either tourism or commodity based. However, despite numerous challenges emanating from their specific vulnerabilities and small size, the issues faced by these countries have remained somewhat veiled and unaddressed.  Many of these countries are highly exposed to the most disastrous consequences of climate […]

MENA Real Estate: A Positive Outlook, Despite Current Challenges

Key takeaway – In a challenging global and regional context, the MENA real estate sector is showing resilience and holds strong prospects. While the global economy is characterized by weak fundamentals, below-potential growth and low inflation, the regional outlook is hampered by political instability and declining oil prices. Yet, the MENA real estate sector, despite […]

Toward the Oil-Dollar-Fed Rollercoaster Ride

The fluctuations of the oil prices, the Fed’s policy rate and the U.S. dollar are intertwined. In fall 2015/spring 2016, the Fed’s impending rate hikes will cause substantial turbulence in emerging markets. Until recently, oil prices were recovering. However, after rallying earlier in the year, oil plunged nearly 20 percent in July (and briefly fell […]