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1. Engines of Prosperity: The Promise of the Zones for Employment and Economic Development (ZEDEs) in Honduras Image

Author:
Ryan C. Berg and Matthew Carusi
Publication Date:
10-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Special economic zones (SEZs) are autonomous zones designed to facilitate free-trade operations. SEZs can be broken down into the following types of zones: free-trade zones, which are duty-free areas to warehouse and transit goods; enterprise zones, which provide tax benefits to underperforming industries; specialized zones, which include technology parks; and freeports—the largest type of economic zones, combining work and residential spaces. A 2008 World Bank report defined SEZs as having the following characteristics: a geographically secured area, a single management system, eligibility for benefits based on the location within the zone, and a separate customs area. Advocates of SEZs argue that they can improve a country’s economic standing by making it more competitive on the global stage. One way to achieve this goal is by improving a country’s infrastructure. Building out more extensive road networks or port systems is beneficial not only for businesses operating inside the SEZ, but also for the entire country’s future economic trajectory. Another argument in favor of SEZs is that they strengthen a country’s institutional framework. In developing countries, this narrative can be particularly relevant because weak institutions often constrain foreign investors from making large-scale commitments. SEZs attempt to fill this gap by increasing the efficiency of the regulatory frameworks, property rights, and investment flows. Since a wealth of SEZs are awarded a certain level of legal autonomy, establishing these unique governance structures can be arranged. SEZs offer similar advantages for streamlining efficiency in the labor market. Wages can be more flexible and the process of hiring and firing employees can become easier. Workers can further be attracted by the availability of better healthcare and education systems, as well as by the availability of internet or phone services. All these factors are crucial in attracting the best possible talent, both domestically and internationally, giving them reasons to set up operations inside an SEZ. The intended results of these characteristics are that GDP per capita within the SEZ would increase substantially and that surrounding areas would be able to reap these rewards. These are known as spillover effects, wherein new influxes of foreign and intellectual capital would spill over into the surrounding communities. However, the verdict on this subject is less clear. According to a 2017 World Bank study, the literature on SEZs does not confirm a clear link between achieving widespread spillovers and increasing regional employment levels. There is more evidence to support the claim that limited spillover effects exist in surrounding areas up to 50 kilometers outside the SEZ.
Topic:
Development, Economics, Employment, and Special Economic Zones
Political Geography:
Central America, North America, and Honduras

2. Addressing the “Root Causes” of Irregular Migration from Central America: An Evidence Agenda for USAID

Author:
Sarah Rose, Reva Resstack, Helen Dempster, Elisa Cascardi, and Jeremy Weinstein
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
In recent decades, the number of people migrating irregularly from the three Northern Triangle countries of Central America—El Salvador, Guatemala, and Honduras—has been increasing, putting pressure on the Biden-Harris administration to address the root causes of irregular migration and deliver “results.” Evidence suggests that these countries are undergoing a demographic and economic transition, hence emigration pressure will likely remain for the coming decades. Yet there is much an entity like USAID, the United States’ largest development agency, can do to moderate the short-run drivers of irregular migration such as violence, climate shocks, lack of economic opportunity, and inaccessibility of legal migration pathways. In this policy paper, we outline the available evidence within these areas that is directly pertinent to irregular migration and identify key evidence gaps to be filled by future research and evaluation. We conclude by outlining five recommendations for how USAID can ensure its work is evidence-based and contributes to new learning, supporting policymakers in this field for decades to come.
Topic:
Development, Immigrants, USAID, Influence, and Migrants
Political Geography:
Central America, North America, Honduras, Guatemala, El Salvador, and United States of America

3. Good Foreign Policy Makes for Good Domestic Policy//Una Buena Política Exterior Contribuye a Una Buena Política Interior

Author:
COMEXI
Publication Date:
11-2018
Content Type:
Special Report
Institution:
Mexican Council on Foreign Relations (COMEXI)
Abstract:
The electoral results of July 1st 2018 bring an extraordinary opportunity to rethink Mexico’s foreign strategy in order to position the country in accordance with its domestic goals and its international reality, considering the means that the country has at its disposal to increase its appeal and competitiveness on the international stage. Mexico has several comparative advantages that can be leveraged—and, at the same time, reinforced—in the international arena. These include the country’s geographic position (bridging the Atlantic and the Pacific), demographics (with an average age of 28 years), language (Spanish is the second-most spoken language in the world), energy resources, 12 trade agreements with 46 countries, economic and political stability, and a denuclearized, interstate Zone of Peace free of religious conflict. The next Mexican administration will face an unusually complex international environment that will force it to give special priority to its foreign policy. Challenges that arise in the international arena could affect national stability, undermine Mexico’s room for maneuver, and impact its development goals. Therefore, having a clear, relevant, and viable strategy that addresses the fundamental interests of the Mexican people and that also has enough clout on the international stage, is crucial. / Ante los resultados electorales del pasado primero de julio, se abre una extraordinaria oportunidad para repensar la estrategia mexicana hacia el exterior que posicione a México en un espacio congruente con sus objetivos internos y su realidad internacional. Todo ello en el contexto de las herramientas que tiene a su disposición para aumentar su atractivo y competitividad en el escenario internacional. México posee diversas ventajas comparativas que pueden ser aprovechadas —y, al mismo tiempo, dinamizadas— en el entorno internacional. Por mencionar algunas: la localización geográfica, puente entre el Atlántico y el Pacífico; la demografía, con una edad de población promedio de 28 años; el idioma, el español es el segundo idioma más hablado en el mundo; los recursos energéticos; una red de 12 tratados comerciales con 46 países; estabilidad económica y política; y una zona de paz interestatal, desnuclearizada, y sin conflictos religiosos. El próximo gobierno de México enfrentará un escenario internacional inusualmente complejo que le obligará a otorgar un grado de prioridad muy destacado a su política exterior. Los desafíos provenientes del ámbito internacional podrían afectar la estabilidad nacional, socavar sus márgenes de maniobra e incidir sobre sus metas de desarrollo, por lo que resulta crucial contar con una estrategia precisa, pertinente, y de ejecución viable, que responda a los intereses esenciales de la nación mexicana, y que alcance la contundencia necesaria en el ámbito internacional.
Topic:
International Relations, Foreign Policy, Development, Elections, European Union, and Domestic Policy
Political Geography:
China, Latin America, North America, Mexico, Honduras, Guatemala, El Salvador, and United States of America

4. Elections in Latin America 2009–2011: A Comparative Analysis

Author:
Manuel Alcántara
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper addresses from a comparative perspective the national elections (legislative and presidential) held between 2009 and 2011 in seventeen Latin American countries. There are five key issues that guide this analysis: the institutional conditions of electoral competition, the electoral offer, election results, party systems, and post-electoral executive-legislative relations. The political consequences of these electoral processes—except perhaps in the cases of Honduras and Nicaragua, where some minor negative trends have arisen—reveal a pattern of apparent normality and political alternation, with a change in the presidential elite and winning proposals that were articulated via institutions. The paper concludes by outlining how countries in the region have successfully overcome challenges of a varying nature and importance, that until recently generated a degree of uncertainty in their respective political systems.
Topic:
Civil Society, Democratization, Development, Political Economy, and Politics
Political Geography:
Latin America, Nicaragua, and Honduras

5. What Makes a Difference in Achieving Higher Labor Productivity? The Case of Low-Income Countries in Latin America

Author:
Osvaldo Nina
Publication Date:
12-2005
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper uses firm level surveys from Ecuador, Guatemala, Honduras and Nicaragua to estimate the determinants of labor productivity. This study started out with the hypothesis that the adverse external business conditions that firms in poor Latin American countries face, may be an important explication of the generally low levels of productivity. However, the empirical results, based on the survey of more than 1300 businesses, do not confirm this hypothesis. Compared to all the variables that are under the firms control, such as capital intensity, energy use, and worker skills, the external business environment (macroeconomic instability and labor regulations) has very little impact on productivity.
Topic:
Development, Economics, Labor Issues, Productivity, and Income
Political Geography:
Latin America, Nicaragua, Honduras, Guatemala, and Ecuador