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This paper introduces an unpublished 1970 work written by the distinguished development economist Lauchlin Currie (1902-93) on Paul Rosenstein Rodan's famous 1944 essay on the "Big Push" which led to the debate on balanced and unbalanced growth in which Albert Hirschman (1915-2012) was an important contributor. Both Currie and Hirschman had been key economic advisers to the Colombian government and here their respective views on development planning are contrasted. In particular, it is shown how Currie's 1970 paper clarifies the theory that serves as the basis for Colombia's 1971-74 National Plan, which he designed and helped execute, and whose institutional innovations have had a lasting impact on Colombia's recent economic history. [ABSTRACT FROM AUTHOR]

The aim of this paper is to present a historical series of Colombian GDP from 1888 to 2013. For that purpose we have employed an expenditure approach to reconstruct the GDP for the period 1888-1929. We linked it to the official statistics data of the DANE. The result is expressed in 2011 purchasing parity dollars for international comparisons. [ABSTRACT FROM AUTHOR]

This paper analyzes the convergence hypothesis and the impact of social policy on the economic growth of the six largest countries in Latin America between 1980 and 2010. Results suggest that social public policies have positively influenced growth in these economies. Particularly, there are non-observed variables (fixed effects) that positively affect the economic growth in Venezuela and Chile; however, there are other non-observed variables that may be negatively affecting growth in Brazil and Mexico. Regarding the convergence hypothesis, results reveal that the speed of convergence diminishes as real income rises, implying that these countries might be converging to their stable states. [ABSTRACT FROM AUTHOR]

This paper suggests that the best way to evaluate and drive development policy is to understand the root causes that explain the political economy restrictions limiting the developmental effectiveness of multilateral and bilateral institutions. To mitigate the deleterious effects of collective action restrictions this paper recommends a twopronged interdependent strategy: an enhanced use of ex ante evaluation in all interventions and through a more intensive application of the paper trail approach; and changes of constitutional rules or macro-institutional conditions which determine the decisions made in all institutions. [ABSTRACT FROM AUTHOR]

Economic and demographic growth in Colombia has been dominated by the largest cities. This has resulted in the common belief that Colombia is mainly an urban country. The aim of this paper is to show how economic and demographic growth has evolved, especially in terms of population density, since the mid-eighties. Using Markov transition chains and their spatial counterpart, we show that since the mid-eighties, municipalities have experienced a highly persistent pattern in which the main cities have maintained their position as the most densely populated. In contrast, municipalities that exhibited low levels of population density have remained relatively stagnant. [ABSTRACT FROM AUTHOR]

This paper uses a new measure of financial development to show that many benefits in terms of growth and stability can still be reaped from further financial development in most emerging markets. First, it defines financial development as a combination of depth, access and efficiency. Second, it highlights that the economic growth weakens at higher levels of financial development. Third, it indicates that the pace of financial development matters. Forth, it provides a new angle related to the tradeoffs of financial regulation. Finally, it finds that there is no "one-size-fits-all" in the sequencing of developing financial institutions versus markets, though as economies evolve the relative benefits from institutions decline and those from markets increase. [ABSTRACT FROM AUTHOR]

The 1949 World Bank mission headed by Lauchlin Currie recommended an integral attack on the interlocking vicious circles of underdevelopment through a widening of domestic and international markets and a reform of macroeconomic policy formulation. In 1950 Currie was invited by the Colombian Government to return as adviser to a new national planning board. In 1952 Albert Hirschman was also hired as an adviser to this board. This paper discusses the heated disagreements between these two distinguished economists, their influence on the theory and practice of economic development in Colombia and of the World Bank, and in particular their focus on planning based on an integral program versus individual project approaches to planning. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between macroeconomic uncertainty, fiscal governance and economic growth in Venezuela from 1968 to 2010. There is feedback between fiscal volatility and uncertainty, but the latter may be the result of weak governance, particularly volatile fiscal policy. Fiscal volatility affects fiscal outcomes, especially when fiscal policy is discretionary. A VAR model is used to examine these results. [ABSTRACT FROM AUTHOR]

In Mexico, wages have stagnated and profits have increased since 1980. This paper analyzes the causes of this performance both at an aggregate and sectorial level. Although in theory trade liberalization should have led to increased wages and a reduction of profits, an unlimited supply of labor prevented wages from increasing and transformed productivity gains in higher returns on capital. Growth of qualified employment was not the result of generalized technological advances; it reflected changes in the composition of labor supply. Higher investment in human capital does not necessarily lead to higher productivity or income. If the improvement in education of the labor force is to generate higher productivity, a public policy of stimulus for economic growth is required. [ABSTRACT FROM AUTHOR]