Improving Lives Through More Competitive Markets
Latin America’s growth lags due to weak competition; pro‑competitive reforms could boost productivity, wages, inclusion, and long‑term development.
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DEVELOPMENT IN THE AMERICAS
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Latin America and the Caribbean have made progress in education and macroeconomic stability, yet growth remains slow and inequality high. A key reason is weak competition. Concentrated and fragmented markets limit innovation, productivity, and opportunities. High market concentration, regulatory barriers, and weak enforcement of rules stifle innovation and limit opportunities. This book presents new evidence showing that greater competition can foster development by lowering prices, increasing productivity, creating better jobs, and strengthening public finances. |
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CompleteLACCompeteLAC is now available!This comprehensive dataset was developed by IDB experts to measure market competition across Latin America and the Caribbean. CompeteLAC brings together comparable indicators on product and labor market concentration, firm dynamics, markups, and innovation, offering an unprecedented view of how markets function in the region. You can now interact with the data, visualize trends, and explore country-level indicators that underpin the findings of the 2025 Development in the Americas report. Access the dataset here |
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Meet the Editors
Vanessa AlviarezVanessa Alviarez is a Lead Economist in the Research Department at the IDB. Her research focuses on international economics, analyzing how decisions by multinational firms influence trade, employment, and productivity. She holds a Ph.D. in Economics from the University of Michigan. 
Matías BussoMatías Busso is a Principal Economist in the Research Department at the IDB. His research uses empirical evidence to formulate better public policies in the areas of labor, education, productivity, and urban economics. He holds a Ph.D. in Economics from the University of Michigan. 
Philip KeeferPhilip Keefer is the Principal Economic Advisor of the Institutions for Development Sector at the IDB. His research explores how political institutions influence development, credibility, and reforms. Previously, he worked at the World Bank and holds a Ph.D. in Economics from Washington University in St. Louis. 
Cezar SantosCezar Santos is a Lead Economist in the Research Department at the IDB. His work focuses on macroeconomic development, labor and credit markets, household economics, and climate change. He holds a Ph.D. in Economics from the University of Pennsylvania. 
Rodolfo StucchiRodolfo Stucchi is the Head of Economics, Monitoring, and Evaluation at IDB Invest. His research focuses on development economics, private sector growth, and labor markets. Previously, he worked at the IDB and the World Bank. He holds a Ph.D. in Economics from Universidad Carlos III de Madrid. |
By strengthening institutions, improving regulations, and promoting regional integration, governments can transform markets into engines of productivity, innovation, and opportunity for all. Policymakers have a central role to play: designing smarter regulations, empowering competition agencies, and building trust and state capacity to ensure that reforms not only open markets but also make them work better for people. Download book |