Challenges to fiscal adjustment in Latin America : the cases of Argentina, Brazil, Chile, and Mexico

This Volume Discusses Progress Made To Date In Argentina, Brazil, Chile And Mexico In Putting Their Finances In Order and Points Out The Challenges Ahead. it Provides An Overview Of Trends And Highlights The Diversity Of Fiscal Adjustment Processes In Latin American Countries. it Also Describes The Financial Market Perspective And Role Of Sovereign Debt Ratings. The Chapter On Argentina Debunks The View That Fiscal Management In The 1990s Was Irresponsible, Arguing Instead That The Financial Crisis Was Caused By A Confluence Of Costly Pension Reforms, Brady Debt Restructuring And The Recognition Of Fiscal Skeletons In The Closet. The Chapter On Brazil Makes A Case For A More Entrenched Culture Of Fiscal Austerity To Make The Current Achievements Sustainable. the Chile Chapter Describes The Role Of Political Cohesiveness Following The Return Of Democracy In Driving The Economy To Fiscal Rectitude. finally, The Chapter On Mexico Discusses Different Scenarios For Debt Dynamics And The Country’s Efforts To Contain Expenditure Pressures. Fiscal Adjustment In Latin America -- Perspectives For Fiscal Adjustment In Latin America -- Argentina's Fiscal Policy In The 1990s -- The Brazilian Fiscal Adjustment -- Structural Change In Chile -- Challenges Of Mexican Fiscal Policy. Edited By Luiz De Mello. Includes Bibliographical References. This volume discusses progress made to date in Argentina, Brazil, Chile and Mexico in putting their finances in order and points out the challenges ahead. It provides an overview of trends and highlights the diversity of fiscal adjustment processes in Latin American countries. It also describes the financial market perspective and role of sovereign debt ratings. The chapter on Argentina debunks the view that fiscal management in the 1990s was irresponsible, arguing instead that the financial crisis was caused by a confluence of costly pension reforms, Brady debt restructuring and the recognition of fiscal 'skeletons' in the closet. The chapter on Brazil makes a case for a more entrenched culture of fiscal austerity to make the current achievements sustainable. The Chile chapter describes the role of political cohesiveness following the return of democracy in driving the economy to fiscal rectitude. Finally, the chapter on Mexico discusses different scenarios for debt dynamics and the countrys efforts to contain expenditure pressures.--Publisher's description The five thematic chapters presented in this volume by de Mello (head of the Brazil/South America Desk of the Economics Department of the Organization for Economic Co-operation and Development--OECD) are based on a November 2004 conference hosted by the Economics Department of the OECD on developments concerning public finances in Latin America. After an opening discussion of crosscutting issues such as the role of public indebtedness, the market's perception of fiscal adjustment, and the institutional underpinnings of fiscal consolidation, four case studies of fiscal adjustment experiences in Argentina, Brazil, Chile, and Mexico are presented. Annotation ©2007 Book News, Inc., Portland, OR (booknews.com)