Economic Development Approaches
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Since World War II, developing countries in the South have been provided with the option of adopting one of three different economic development strategies: structuralism, neoliberalism, and Marxism. The purpose of this essay is to examine the economic and political results engendered by each approach and to determine what these results suggest for future economic policy choices in the region. Three countries lend themselves to this analysis. Cuba, particularly since the overthrow of the Batista regime and the establishment of Castro's Marxist government, has pursued economic development along Marxist lines (Perez-Lopez, 1997). In Argentina, a structuralist economic order under Juan Peron gave way to a neoliberalist orientation (Smith, 1991). In Chile, a neoliberal experiment between 1974 and 1990 took place and this experiment has led to structural change in the national economy (Albala-Bertrand, 1999). Spero (1990) describes structural theory as falling between liberalism and Marxism and is based upon the idea that the international market structure perpetuates backwardness and dependency in the South and encourages dominance by the North. Unregulated international trade and capital movements is seen as accentuating rather than diminishing international inequalities. In the case of Argentina, Peronist dogma created a situation in which an authoritarian state was succeeded by a purportedly populist democracy. State marketing boards were created to oversee trade
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) believes that at the heart of the Chilean neoliberal restructuring effort was a draconian economic stabilization strategy which included the rapid and thorough liberalization of capital markets and prices and the elimination of quantitative restrictions on trade. Tariffs were reduced to a uniform 10 percent, a multiple exchange rate system was consolidated, and the government instituted a crash privatization program under which more than 300 firms with a total book value of about US $1 billion was returned to private ownership by the end of 1974.
At the same time, labor unions were harshly suppressed by executive decree and allowed to operate only under a repressive labor law (the Plan Laboral) which eliminated nationwide and sectoral collective bargaining, wage negotiation, and other issues. Real wages were cut in half and public spending in preventive health, primary education, and public housing were slashed. Unemployment reached 17.6 percent and hyperinflation averaged 350 percent (Sharma, 1999). Though enormous economic consequences were recorded for the Chilean workers, peasants, and sections of the middle class, and worsening poverty and inequality also emerged, the neoliberal economic model appears to have se
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Some common words found in the essay are:
Chile Argentina, Gwynne Kay, Salvador Allende, Menem Experiment, Soviet Union, Plan Laboral, America Neoliberal, War II, Latin American, Juan Peron, kay 2000, gwynne kay 2000, gwynne kay, perez-lopez 1997, smith 1991, economic growth, neoliberal model, latin american, spero 1990, chile argentina, economic development, kay 2000 suggested, interamerican studies world, studies world affairs, journal interamerican studies,
Approximate Word count = 1766
Approximate Pages = 7 (250 words per page)
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