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Structural reform in Latin America: What has been reformed and how it can be quantified (updated Version)

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  • Eduardo Lora

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Abstract

This study evaluates the major changes in the main sectors of structural economy policy in Latin America between 1985 and 2009, and proposes a set of indices intended to measure the extent to which commercial, financial, tax, privatization and labor policies are favorable for the free operation of the various markets. In a scale that ranges from 0 to 1, the average index for all the countries and all the areas of structural policy rose from 0. 39 in 1985 to 0. 6 by the end of the 90s and to 0. 65 by the end of the decade of 2000. The structural reforms have been deep, particularly in the commercial and financial sectors and, to a lesser extent, in the areas of taxation and privatization of the infrastructure sectors. These indices allow comparisons through time, between areas and countries. However, they are inadequate in measuring structural policies in Argentina and Venezuela during the decade of 2000 because some of the heterodox policies adopted by these countries are not covered by the indices.

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Bibliographic Info

Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4809.

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Date of creation: Oct 2012
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Handle: RePEc:idb:wpaper:4809

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