New Economics Papers
on Central and South America
Issue of 2010‒08‒14
three papers chosen by

  1. Acute Multidimensional Poverty: A New Index for Developing Countries By Sabina Alkire; Maria Emma Santos
  2. La microeconomía de la producción y tráfico de cocaína en Colombia By Daniel Mejia; Daniel M. Rico
  3. Trade Logistics and Regional Integration in Latin America and the Caribbean By Guerrero, Pablo; Lucenti, Krista; Galarza, Sebastián

  1. By: Sabina Alkire (Oxford Poverty & Human Development Initiative (OPHI), Queen Elizabeth House (QEH), Department of International Development, Oxford University); Maria Emma Santos (Oxford Poverty and Human Development Initiative, UK and Consejo Nacional de Investigaciones Científicas y Técnicas, Universidad Nacional del Sur, Argentina)
    Abstract: This paper presents a new Multidimensional Poverty Index (MPI) for 104 developing countries. It is the first time multidimensional poverty is estimated using micro datasets (household surveys) for such a large number of countries which cover about 78 percent of the world´s population. The MPI has the mathematical structure of one of the Alkire and Foster poverty multidimensional measures and it is composed of ten indicators corresponding to same three dimensions as the Human Development Index: Education, Health and Standard of Living. Our results indicate that 1,700 million people in the world live in acute poverty, a figure that is between the $1.25/day and $2/day poverty rates. Yet it is no $1.5/day measure. The MPI captures direct failures in functionings that Amartya Sen argues should form the focal space for describing and reducing poverty. It constitutes a tool with an extraordinary potential to target the poorest, track the Millennium Development Goals, and design policies that directly address the interlocking deprivations poor people experience. This paper presents the methodology and components in the MPI, describes main results, and shares basic robustness tests.
    Keywords: Poverty Measurement, Multidimensional Poverty, Capability Approach, Multidimensional Welfare, Human Development, HDI, HPI
    JEL: I3 I32 D63 O1 O15
    Date: 2010–07
  2. By: Daniel Mejia; Daniel M. Rico
    Abstract: Este capítulo presenta una radiografía detallada de la microeconomía de la producción y tráfico de cocaína en Colombia. El capítulo presenta una breve descripción de la evolución en el tiempo de las cifras agregadas sobre producción de cocaína y luego se concentra en describir en detalle cada eslabón de la cadena de producción. En particular, se describen los principales costos e ingresos en cada eslabón y, con base en la información disponible, se presenta una estimación de los flujos de recursos que se mueven en la economía colombiana producto de estas actividades ilegales. Las fases de producción del clorhidrato de cocaína comprenden desde procesos de economía campesina, que incluye transformaciones de bajo valor agregado, producción a baja y mediana escala de base de coca, participación de actores armados ilegales en los eslabones de mayor generación de valor agregado, y complejas redes de distribución de precursores y control sobre las rutas del narcotráfico. Nuestros estimativos indican que, con datos a 2008, el tamaño del negocio de producción y tráfico de cocaína en Colombia es de aproximadamente $13.6 billones de pesos (2.3% del PIB), valor agregado que se distribuye así: $1.2 billones corresponden al valor de la hoja de coca producida; $0.8 billones al valor agregado de la base de coca; $2 billones al valor agregado de la transformación de base en clorhidrato de cocaína; y $9.6 billones alvalor generado en el eslabón del tráfico.
    Date: 2010–06–30
  3. By: Guerrero, Pablo (Asian Development Bank Institute); Lucenti, Krista (Asian Development Bank Institute); Galarza, Sebastián (Asian Development Bank Institute)
    Abstract: <p>During the past few decades, the landscape of the world economy has changed. New trade patterns reflect the globalization of the supply chain and intra-industry trade, and increasing flows between neighboring countries and trading blocs with similar factor endowments. Similarly, the approach to production, trade, and transportation has evolved incorporating freight logistics as an important value-added service in global production. This integrated approach have become essential, and as such, both the trade agenda and freight logistics are beginning to converge providing an unparalleled opportunity for countries to deepen their integration with neighboring countries and their national performance in transport related services. Consequently, developing countries are finding themselves hard-pressed to adjust their policy agendas to take into account costs not covered in past rounds of trade negotiations. <p>This paper focuses on the importance of freight logistics in trade facilitation measures, examines the transport and logistics cost in international trade, addresses logistics performance in Latin America and the Caribbean and regional initiatives to advance the integration process and finally, exchanges views on the potential for trade logistics to impact the regional agenda and to deepen integration.
    Keywords: latin america caribbean trade; regional integration; infrastructure trade facilitation
    JEL: F15
    Date: 2010–08–02

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