News Americas, NEW YORK, NY, Fri. April 12, 2024: The Caribbean is missing on two fronts according to the World Bank in its latest economic review and assessment of the region and Latin America.
According to the 2024 report, “Competition: The Missing Ingredient for Growth?,” both the Caribbean and Latin America are missing on the competition front. According to the Bank’s analysts, “low competition makes consumers pay higher prices for lower-quality goods and services, reducing overall welfare, and contributes to higher inequality, as monopoly prices on essential goods and services consume relatively more of the budgets of poorer households.”
Analysts recommended increasing the competition in order to stimulate growth and improve consumer welfare.
“Competition from low-cost consumer imports can help raise the standard of living of families across the income spectrum. Competition also has the power to nudge domestic producers into adopting new products and technologies, improving productivity at the firm level,” states the report. “The global integration of markets has contributed to more competitive environments, facilitating the diffusion and adoption of innovations that enhance efficiency. At the same time, competing in dynamic and challenging domestic markets is the best way for firms to prepare for exporting.”
Meanwhile , the World Bank’s chief economist for Latin America and the Caribbean, William Maloney, also said the Caribbean is lagging behind when it comes to data needed to track not only the performances of the respective economies but labour market indicators among others.
“Getting good data on the Caribbean remains a major challenge,” Maloney said.
