--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-21/insights-from-latin-america-for-canada-a-review-article-on-the-age-of-productivity-transforming-economies-from-the-bottom-up/" title: "Insights from Latin America for Canada: A Review Article on The Age of Productivity: Transforming Economies from the Bottom Up" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:33:39+00:00" date_modified: "2026-07-13T07:33:39+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2011" ipm_keyword: - "Canada" - "Caribbean" - "credit" - "innovation" - "Inter-American Development Bank" - "Latin America" - "productivity" - "review article" - "SMEs" - "TFP" - "trade costs" ipm_research_theme: - "Policy and institutions" ipm_country_focus: - "Canada" - "International" - "Latin America" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Insights from Latin America for Canada: A Review Article on The Age of Productivity: Transforming Economies from the Bottom Up Canonical URL: https://csls.ca/ipm-archive/ipm-issue-21/insights-from-latin-america-for-canada-a-review-article-on-the-age-of-productivity-transforming-economies-from-the-bottom-up/ # Insights from Latin America for Canada: A Review Article on The Age of Productivity: Transforming Economies from the Bottom Up [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-21-4-Rao.pdf) Cite this article × Cite this article as: Rao, Someshwar. 2011. “Insights from Latin America for Canada: A Review Article on The Age of Productivity: Transforming Economies from the Bottom Up.” International Productivity Monitor, No. 21 (Spring 2011): 70–81. https://www.csls.ca/ipm-archive/ipm-issue-21/insights-from-latin-america-for-canada-a-review-article-on-the-age-of-productivity-transforming-economies-from-the-bottom-up/ ## Author: - Someshwar Rao Innovation, Science and Economic Development Canada ## IPM Issue 21 Spring 2011 pp. 70–81 ## Related IPM articles [Is the SNA Still Useful? A Review Article on The Measure of Progress: Counting What Really Matters Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 116–124](https://csls.ca/ipm-archive/ipm-issue-49/is-the-sna-still-useful-a-review-article-on-the-measure-of-progress-counting-what-really-matters/) [Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Barbara Fraumeni Fall 2025 | IPM Issue 49 | pp. 103–115](https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [The Challenges of Productivity Measurement — Review Article on The Measure of Economies: Measuring Productivity in an Age of Technological Change Chad Syverson Spring 2025 | IPM Issue 48 | pp. 139–143](https://csls.ca/ipm-archive/ipm-issue-48/the-challenges-of-productivity-measurement-review-article-on-the-measure-of-economies-measuring-productivity-in-an-age-of-technological-change/) [The UK Productivity Slowdown: A Review of Timing, Magnitude, and Drivers Josh Martin Spring 2025 | IPM Issue 48 | pp. 1–34](https://csls.ca/ipm-archive/ipm-issue-48/the-uk-productivity-slowdown-a-review-of-timing-magnitude-and-drivers/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This review article assesses the edited volume The Age of Productivity: Transforming Economies from the Bottom Up, which addresses the productivity challenges facing Latin America and the Caribbean. The main message of the volume is that a low level of total factor productivity (TFP) and slow TFP growth account for the region’s large and growing income gaps relative to developed economies and the emerging East Asian economies. High trade costs, a large credit gap, a complex and ineffective tax system, unintended consequences of SME support programs and social policies, and a large innovation deficit are identified as largely responsible for the region’s productivity problems. Given that Canada’s productivity challenge is similar to that of Latin America, the article discusses possible policy lessons for Canada from the region’s experience. RÉSUMÉ Ce compte rendu critique analyse l’ouvrage intitulé The Age of Productivity: Transforming Economies from the Bottom Up, qui traite des défis que doivent relever l’Amérique latine et les Caraïbes. Le message principal de cet ouvrage est que les écarts importants et croissants en termes de revenu comparativement aux économies de pays développés ou émergents en Asie orientale peuvent s’expliquer par un faible niveau de productivité multifactorielle (PMF) et une faible croissance de cette PMF. Les auteurs attribuent en grande partie les problèmes de productivité de la région à des coûts commerciaux élevés, à d’importants écarts en termes de crédit, à un régime fiscal complexe et inefficace, aux conséquences involontaires de politiques sociales et de programme d’aide aux PME, ainsi qu’à un manque important d’innovation. Observant que l’Amérique latine et le Canada sont confrontés à des défis similaires, le texte examine les leçons politiques que le Canada pourrait tirer de l’expérience de cette région. THE AGE OF PRODUCTIVITY: Transforming Econ- Cet article de recension évalue l’ouvrage collectif The Age of Productivity: Transforming Economies from the Bottom Up, qui aborde les défis de productivité auxquels font face l’Amérique latine et les Caraïbes. Le message principal du volume est qu’un faible niveau de productivité multifactorielle (PMF) et une faible croissance de la PMF expliquent les écarts de revenu importants et croissants de la région par rapport aux économies développées et aux économies émergentes d’Asie de l’Est. Des coûts commerciaux élevés, un important déficit de crédit, un système fiscal complexe et inefficace, les conséquences imprévues des programmes de soutien aux PME et des politiques sociales, et un important déficit d’innovation sont identifiés comme les principaux responsables des problèmes de productivité de la région. Étant donné que le défi de productivité du Canada est similaire à celui de l’Amérique latine, l’article examine les enseignements politiques possibles pour le Canada. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-21-4-Rao.pdf)