Escaping the Governance Trap: Economic Reform in the Northern Triangle

The COVID-19 pandemic has caused significant economic damage in the Northern Triangle countries of El Salvador, Guatemala, and Honduras, particularly affecting the smallest and most vulnerable economies. Escaping the Governance Trap: Economic Reform in the Northern Triangle offers a framework for understanding the challenges and proposes economic reforms as a solution to help these countries escape their governance traps. The book covers fiscal policy, monetary and exchange rate policy, financial access and deterrence, and structural reforms and highlights the role of stakeholders like the United States in supporting these efforts.

Format: Hardback
Length: 152 pages
Publication date: 14 July 2022
Publisher: Springer Nature Switzerland AG

The COVID-19 pandemic has caused significant disruption to the global economic landscape, particularly affecting the smallest and most vulnerable economies. In the Northern Triangle countries of El Salvador, Guatemala, and Honduras, the crisis has resulted in loss of lives and livelihoods, posing challenging policy tradeoffs. The pandemic has impacted both the demand and supply sides of the economy, leading to increased risks of macroeconomic instability.

Each country is expected to emerge from the crisis with an even greater need for reform. Escaping the Governance Trap: Economic Reform in the Northern Triangle offers a comprehensive framework for understanding the challenges faced by these three Central American nations. It emphasizes the lack of governing capacity as a central issue, suggesting that economic reforms can help these countries break free from their governance traps. The book identifies priority areas for economic reform, including fiscal policy, monetary and exchange rate policy, financial access and deterrence, and structural reforms. It also highlights the role that stakeholders such as the United States can play in supporting these reform efforts and the impact of these outcomes on both the United States and the global community.

In essence, Escaping the Governance Trap provides an accessible and insightful account of the economic challenges in the Northern Triangle and offers practical solutions for addressing them. It is a valuable resource for policymakers, researchers, and anyone interested in understanding the region's economic development and the role of governance in shaping its future.

Dimension: 210 x 148 (mm)
ISBN-13: 9783030990220
Edition number: 1st ed. 2022