At the beginning of June, the Cuban government started another liberalisation experiment, by allowing the creation of a private agricultural wholesale market, where farmers can buy and sell agricultural supplies. Initially, the experiment is confined to Isla Juventud, a small island off the south-west coast, with a population of 60,000. Depending on the results, it may then be rolled out nationally. Although there has been some liberalisation of the agriculture sector nationally with farmers allowed to grow their own crops, the authorities clearly think more needs to be done. Agricultural output has not increased significantly since liberalisation began six years…

At the end of August last year, the Banco Central de la República Dominicana (BCRD – the central bank) chose to hike its key policy rate by 200 basis points to 6.25%, in response to currency volatility. It had previously reduced the rate by 75 basis points in late May 2013 in order to counter the general softness of economic activity. As of mid-June 2014, the latest commentary and data indicate that neither the slippage in the Dominican peso nor the BCRD's response, have had a lasting and adverse impact. In the commentary following its latest monetary policy meeting in…

The economic imbalances in Honduras remain large, particularly for a country where institutions are weak and where the rule of law is absent. Alarming statistics about Honduras are easy to find. According to the US State State Department’s 2014 International Narcotics Control Strategy Report (INCSR), some 86% of all cocaine entering the US is believed to have come through the Mexico-Central America corridor. Not all the cocaine travels by air (and Caribbean Sea routes have recently been revived, according to the US military’s Southern Command). However, some three quarters of all planes smuggling cocaine out of South America first land…

Four new presidents (all men in this case) are in the process of settling in as the new chief executives in Colombia, Costa Rica, El Salvador and Panama. Here, we identify the prospects and main challenges for each country. PANAMA: Juan Carlos Varela, a surprise victor in the 4 May general elections, is due to take office on 1 July for a five-year term. Panama overview Population 3.6m Most problematic factors for business % of responses GDP US$36.3b 1. Inadequately educated workforce 16.8% GDP per capita US$9,919 2. Inefficient govt bureaucracy 16.1% Annual GDP growth, 2013 8.0% 3. Corruption 15.8%…