Thoroughly revised and updated, this foundational text provides the basic economic tools for students to understand the problems facing the countries of Latin America. In the fourth edition, Patrice Franko analyzes challenges to the neoliberal model of development and highlights recent macroeconomic changes in the region. Including charts and tables with the most current data available, the book also offers a wealth of new boxed discussions and vignettes.
Author(s): Patrice Franko
Edition: 4. ed.
Publisher: Rowman & Littlefield
Year: 2018
Language: English
Pages: 571
Cover
Contents
Tables, Figures, and Boxes
Preface
Abbreviations
Maps
Chapter 1 Development in Latin America
A Conceptual Map: What Is Economic Development?
Internal versus External Macroeconomic Balance
Stability versus Change: The Question of Timing
Policy for Whom?
Present versus Future Value: The Environmental Dimension
The State and the Market: Promoting Partnership
Chapter 2 Historical Legacies
The Puzzle of Comparative Growth Patterns
Thinking about Inputs, Outputs, and Economic Change
Natural Abundance: Geography and the Rewards of the Extractive Economy
Labor and Social Relations
Independence: Political Change without Economic Transformation
The Giant Sucking Sound of Single-Commodity Exports
Engel’s Law and Declining Terms of Trade
The Effects of Weak Industrial Linkages and High Tariff Taxation
Dominance of Foreign Capital During the First Wage of Globalization
The Environmental Dimension
The Isolation of the War Years: A Blessing in Disguise?
Historical Lessons
Chapter 3 Import Substitution Industrialization
Dependency Theory: An Explanation for Backwardness
From Dependency Theory to Development Policy: ECLA and the Structuralist School
From Structuralism to ISI
The ISI Toolbox
The Performance of ISI
The Crisis of ISI
Lessons for Development: Was ISI Inherently Flawed?
Chapter 4 Latin America’s Debt Crisis
The Mountain of Debt: An Unstable Foundation for Development
Can’t Pay, Won’t Pay
Is the Debt Crisis Over in Latin America?
Lessons of the Debt Crisis
Chapter 5 Macroeconomic Stabilization
Theories of Inflation: Monetarists versus Structuralists
Perpetuating Inflation: Indexation, Inflationary Expectations, and Velocity
How Much Inflation Is Too Much? Timing and Adjustment Problems
Heterodox Approaches to Inflation Stabilization in the 1980s: Brazil
Early Monetarist Applications: Bolivia
The Case of Argentina: From the Austral Plan to the Convertibility Plan
Lessons for Stabilization
From Stabilization to Growth
The Price of Price Stability: The Challenge of Resolving the Social Deficit
Chapter 6 Public and Private Capital Flows to Latin America
An Introduction to the Behavior of Capital Flows
Rewards and Risks of New Capital Flows to Latin America
The complexity of Transnational Investment
Remittances: People Moving North, Money Moving South
Official Development Assistance
Macro Policy in a Globalized Economy: Limiting Volatility and Promoting Economic Inclusivity
The Macro New Normal: Between a Rock and a Hard Place
Raising Domestic Savings: A Key to Resilient Macro Economies
Virtuous Circles: Can Latin America Promote More Resilient Growth?
Chapter 7 Contemporary Trade Policy
Theoretical Benefits of Free Trade
Has Trade Promoted Growth?
How Should Trade Liberalization Be Implemented?
The New Geography of International Trade: Where to Focus Trade Opening
Conclusion: New Geometries of Trade—Or Erecting Impediments
Chapter 8 Microeconomic Foundations for Growth and Competitiveness in the Global Economy
Micro foundations in Globalized Economy
A Profile of Micro Foundations for Productive Growth in Latin America
Labor Markets: Good Jobs Wanted in High Productivity Sectors
The Persistence of Informality: Labor Market Rigidity
Policy Interventions for Labor Markets in a Globalized Economy
Science and Technology Policy: Accelerators of Productivity
Infrastructure: A Critical Complementary Input
Linking Latin America to the Global Economy: Logistics and Competitiveness
Competitiveness Boosters: Information and Communications Technologies
Corruption: A Gangrene on Society
Enhancing Productivity in Latin America: The Policy Mix
Chapter 9 Latin American Agriculture
A Multiplicity of Market Failures Constrain Latin American Agriculture
Dualism in Latin American Agricultural Markets Perpetuates Unequal Growth
The Global Value Chain: Inputs, Production, and Sales
Socioeconomic Deficits in the Rural Sector
Policy Interventions for a Sustainable Agricultural Sector
Chapter 10 Poverty in Latin America
How Do We Understand Poverty?
New Class Dynamics in Latin America
Addressing Poverty and Inequality in Latin America
Private-Sector Initiatives
Chapter 11 Health Policy
The Peculiar Nature of Health Care as a Good
A Profile of Health in the Region
Health Care Systems in Latin America
Paying the Bill for Health
Chapter 12 Education
Investing in Education: The Moral and Economic Dimensions
Latin America’s Educational Report Card
Conclusion: Making Schooling Work
Chapter 13 Promoting Sustainable Environments in Latin America
Environmental Challenges in Latin America
The Economic Nature of the Environmental Problem in Latin America
Expanding Opportunities: State and Multilateral Investments in Sustainability
Adaptation, Mitigation, and Risk Management
Expanding Opportunities: Market-Based Policy Initiatives
Conclusion: Low-Hanging Fruit toward High Hanging Aims
Chapter 14 Lessons (Not Quite) Learned
The Economic Laboratory of Latin America
Unraveling ISI
Neoliberal Reforms
The Compelling Social and Environmental Agenda
Addressing the Social Deficit
The Challenge of Deep Microeconomic Reform
Toward Productive, Sustainable Growth
The Balancing Act of the State
Glossary
Bibliography
Index
