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Towards Sustainable Development in Central America and the Caribbean PDF

244 Pages·2001·0.886 MB·English
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Towards Sustainable Development in Central America and the Caribbean Edited by Anders Danielson and A. Geske Dijkstra Towards Sustainable Development in Central America and the Caribbean Also by Anders Danielson THE POLITICAL ECONOMY OF DEVELOPMENT THE ECONOMIC SURPLUS Also by A. Geske Dijkstra GENDER AND ECONOMICS:A European Perspective Towards Sustainable Development in Central America and the Caribbean Edited by Anders Danielson Associate Professor Department of Economics University of Lund Sweden and A. Geske Dijkstra Senior Lecturer in Economics Faculty of Social Sciences Erasmus University Rotterdam The Netherlands Editorial matter,selection and Chapter 1 © Anders Danielson and A.Geske Dijkstra 2001 Chapter 2 © Anders Danielson 2001 Chapter 6 © A.Geske Dijkstra 2001 Chapters 3–5,7–9 © Palgrave Publishers Ltd 2001 Softcover reprint of the hardcover 1st edition 2001 978-0-333-79337-4 All rights reserved.No reproduction,copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced,copied or transmitted save with written permission or in accordance with the provisions of the Copyright,Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency,90 Tottenham Court Road,London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright,Designs and Patents Act 1988. First published 2001 by PALGRAVE Houndmills,Basingstoke,Hampshire RG21 6XS and 175 Fifth Avenue,New York,N.Y.10010 Companies and representatives throughout the world PALGRAVEis the new global academic imprint of St.Martin’s Press LLC Scholarly and Reference Division and Palgrave Publishers Ltd (formerly Macmillan Press Ltd). ISBN 978-1-349-41975-3 ISBN 978-0-230-50212-3 (eBook) DOI 10.1057/9780230502123 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Towards sustainable development in Central America and the Caribbean / edited by Anders Danielson,A.Geske Dijkstra. p.cm. Includes bibliographical references and index. 1.Sustainable development—Central America.2.Sustainable development—Central America.I.Danielson,Anders,1957– II.Dijkstra,A.Geske. HC141.Z9 E58 2001 338.9728’07—dc21 2001032719 10 9 8 7 6 5 4 3 2 1 10 09 08 07 06 05 04 03 02 01 Contents List of Tables vii List of Figures x Preface xi Notes on the Contributors xii List of Abbreviations xiv 1 Towards Sustainability in Central America and the Caribbean: Introduction and Overview A. Geske Dijkstra and Anders Danielson 1 2 Fiscal Sustainability in the CAC Region Anders Danielson 12 3 The Fruits of Interest: Financial Liberalization and Banking in Central America 30 Trevor Evans 4 Trade Reform in Central America and the Caribbean: Will Liberalization Resolve the Problem of Structural Imbalances? 57 Rebecca Taylor and Andy Thorpe 5 Economic Reform, Citizenship and Social Integration in Central America 88 Carlos Sojo 6 Crisis, Adjustment and the Dynamics of Gender Relations in Central America and the Caribbean 114 A. Geske Dijkstra 7 Economic Policy and the Environment: Structural Adjustment and Prospects for Sustainable Natural Resource Management in Central America 140 Ruerd Ruben v vi Contents 8 Sustained Growth in Haiti: Pipe-Dream or Realistic Possibility? 161 Mats Lundahl 9 The Performance of the Manufacturing Industry under Adjustment: The Case of Trinidad & Tobago 192 Philomen Harrison Index 221 List of Tables 1.1 Growth and fluctuations of income 3 1.2 Indicators of economic well-being 4 1.3 Agricultural production and export, index 5 2.1 Macroeconomic indicators for Central American countries, annual averages 18 2.2 Macroeconomic indicators for Caribbean countries, annual averages 19 2.3 Fiscal sustainability indicators for Central American countries, annual averages, per cent of GDP 22 2.4 Fiscal sustainability indicators for Caribbean countries, annual averages, per cent of GDP 23 2.5 Debt indicators: Central America 25 2.6 Debt indicators: Caribbean 26 3.1 Indicators of financial institutions in Central America, 1995 37 3.2 Liberalization of interest rates 40 3.3 Real rates of interest in Central America, 1990–96 41 3.4 Reserve requirements on current accounts in national currency 42 3.5 Bank interest-rate spreads in Central America, 1990–96 43 3.6 Liquidity (M2) as percentage of GDP 45 3.7 Gross saving as percentage of GDP 46 3.8 Gross investment in fixed capital as percentage of GDP 48 3.9 Credit extended by banks in Central America, 1990–95 49 4.1 Commencement of trade liberalization reforms in Central America and the Caribbean 62 4.2 Exchange rate controls and restrictions in Central America and the Caribbean, 1979 and 1995 64 4.3 Tariffs and non-tariff restrictions in Central America and the Caribbean, 1995 67 4.4 Pre- and post-trade reform performance of the Central American and Caribbean economies 72 4.5 Structure of Costa Rican exports, 1970–96 74 4.6 Structure of Guatemalan exports, 1970–96 76 4.7 Structure of Jamaican exports, 1970–95 79 4.8 Intra-regional exports as per cent of total exports, 1985–95 80 vii viii List of Tables 5.1 Costa Rica: GDP composition by sector, constant prices 91 5.2 Honduras: GDP composition by sector, constant prices 92 5.3 Nicaragua: GDP composition by sector, constant prices 93 5.4 Central America: poverty and levels of vulnerability 96 5.5 Economically active population (EAP) by sector 99 5.6 Employment by sector 102 5.7 Percentage growth of average monthly income by sector 103 5.8 Levels of inclusion–exclusion based on type of employment 105 5.9 Structure of inclusion–exclusion, per cent of economically active population 106 6.1 General indicators, Central America and the Caribbean 118 6.2 Urbanization, contraceptive use and fertility indicators 121 6.3 Female share in parliament 122 6.4 Social indicators: relative female/male achievements 123 6.5 Maternal mortality rates 124 6.6 Relative female/male economic activity rate and occupational segregation index 125 6.7 Improvements in indicators between 1980 and 1990, by country 129 6.8 Relative female/male hourly wages in urban formal and urban informal sector, Central America 131 7.1 Central America: degradation of natural resources 143 7.2 Agrarian structure, land resources and agricultural yields 145 7.3 Relative price changes 1980–90 147 7.4 Economic policies and environmental effects 150 7.5 Simulated farm household responses to policy instruments 153 9.1 Selected adjustment policies as they impact on private investment 197 9.2 Selected relative prices, period averages, 1966–98 202 9.3 Growth rates, period averages 204 9.4 Savings and investment as per cent of GDP 205 9.5 Debt ratios, monetary variables, fiscal and current account deficits 206 9.6 Industry contribution to GDP 207 9.7 Selected indicators: food processing/drink/tobacco industry 208 9.8 Selected indicators: textiles, garments and related industry 209 List of Tables ix 9.9 Selected indicators: assembly and related industry 209 9.10 Real lending rate, real exchange rate index, and changes in the real exchange rate, 1983–94 210 9.11 Profit to sales and investment to total assets by employment size and industry 214

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