Country Insurance : Reducing Systemic Vulnerabilities in Latin America and the Caribbean

World Bank

Washington, DC

关键词: ACCESS TO INSURANCE;    ADVANCED ECONOMIES;    AGENCY PROBLEM;    ASSET CLASS;    ASSET MANAGEMENT;   

RP-ID  :  43066

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This study begins from the premise thatoutput and consumption are more volatile and prone to sharpcontractions in developing than in high-income economies.This suggests that developing countries are somehow"underinsured" and may thus need to invest more in"country insurance" policies. To shed some lighton this issue, the author begin by providing in the firstchapter evidence of the excessive volatility faced bydeveloping countries in general (and Latin American andCaribbean, LAC, countries in particular) and then discusssome of the welfare costs associated with such volatility.In second chapter, the author focus on the main trade-offsand on the strategic choices confronted by developingcountries if they decide to increase their resilience toexternal shocks. Finally, in the third chapter, the authorlook at different policy options, focusing on how theinternational financial institutions (IFIs) in general andthe World Bank in particular can help developingcountries' reduce their vulnerability to externalshocks. While excessive volatility in developing countriesaffects both government and the private sectors, this studylimits its focus to the government sector. The privatesector challenges will be addressed in future research.