Washington consensus, often interchangeably used with neoliberal policies, has become a rod of dissatisfaction among anti-globalization. In theory, neoliberal policies seek to industrialize Latin America through western ideas and structure under the policy of “one size fits all”. Late development theory states that not all development will follow the same path as their predecessors. Each country accounts for its own history, culture, trajectory and variables for development. Globalization while it has workers for western countries, it has not been the rightful path for newly developing countries to undertake with given set of policies as underlined by Washington consensus. Between the 1930s and the later 1970s most of the countries in Latin America used the Import Substitution Industrialization (ISI) model to build industry and reduce dependency on imports from foreign countries. These countries rapidly urbanize with a fast growing working class. In respond to the economic crisis the head of state of these countries adopted and implemented new neoliberal policies. One think to keep in mind is that international financial crisis is usually more difficult to manage than domestic crisis due to jurisdictional ambiguities. Some basic level of cross-national coordination is required in crisis management and resolution. Intergovernmental institutions can play a supportive role, but their main mission has typically focused on preventing next crisis. Hegemonic stability theory under realism suggest that “international economic collaborations in pursuit of an open economic order is most likely to occur when the global economic is dominated by a simple power” (Ravenhill 22). The theory is rooted on international relations especially in p... ... middle of paper ... ...ey, Douglas S., Magaly Sánchez, and Jere R. Behrman. Chronicle of a Myth Foretold: The Washington Consensus in Latin America. Thousand Oaks, CA: SAGE Publications, 2006. Print. Newman, Edward, Ramesh Chandra Thakur, and John Tirman. Multilateralism under Challenge?: Power, International Order, and Structural Change. Tokyo: United Nations UP, 2006. Print. Panizza, Francisco. Contemporary Latin America: Development and Democracy beyond the Washington Consensus. London: Zed, 2009. Print. Ravenhill, John. Global Political Economy. Oxford: Oxford UP, 2005. Print. Rodrik, Dani. The New Global Economy and Developing Countries: Making Openness Work. Washington, DC: Overseas Development Council, 1999. Print. Stiglitz, J. (1998b) ‘Towards a New Paradigm for development: strategies, Policies, Processes’, Prebich Lecture, UNTAD, Geneva, Reprinted in Chang (ed). 2001.
Models for post-revolutionary Latin American government are born of the complex economic and social realities of 17th and 18th century Europe. From the momentum of the Enlightenment came major political rebellions of the elite class against entrenched national monarchies and systems of power. Within this time period of elitist revolt and intensive political restructuring, the fundamental basis for both liberal and conservative ideology was driven deep into Latin American soil. However, as neither ideology sought to fulfill or even recognize the needs or rights of mestizo people under government rule, the initial liberal doctrine pervading Latin American nations perpetuated racism and economic exploitation, and paved the way for all-consuming, cultural wars in the centuries to come.
Time and rules have been transforming countries in many ways; especially, in the 1850’s and the 1920’s, when liberals were firmly in control across Latin American region. Liberalism can be defined as a dominant political philosophy in which almost every Latin American country was affected. A sense of progress over tradition, reason over faith, and free market over government control. Although each country was different, all liberals pursued similar policies. They emphasize on legal equality for all citizens, progress, free trade, anti-slavery, and removing power from church. Liberals declared promising changes for Latin American’s future. But Latin America had a stronger hierarchical society with more labor systems, nothing compare to the United States societies. Liberals weren’t good for Latin America. What I mean by “good” is the creation of a turning point or some type of contribution towards success. I define “good” as beneficial or helpful. The Latin American economy was stagnant between 1820 and 1850 because of independence wars, transportation and the recreation of facilities. I describe this era as, “the era when Latin America when off road”.
Burns, E. B., & Charlip, J. A. (2007). Latin America: an interpretive history (8th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
Burns, E. B., & Charlip, J. A. (2007). Latin America: an interpretive history (8th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
Harry E. Canden. , & Gary Prevost, (2012). Politics Latin America. (4th ed.). New York: Oxford University Press.
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Sigmund, Paul E. The United States and Democracy in Chile. Baltimore, MD: Twentieth Century Fund, 1993.
Neoliberalism is a form of economic liberalism that emphasizes the efficiency of private enterprise, liberalized trade, and relatively open markets. Neoliberals seek to maximize the role of the private sector in determining the political/economic priorities of the world and are generally supporters of economic globalization. During the 1930s and the late 1970s most Latin American countries used the import substitution industrialization model to build industry and reduce dependency on imports from foreign countries. The result of the model in these c...
Burns, E. B., & Charlip, J. A. (2007). Latin America: an interpretive history (8th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
In the twentieth century Latin America went through several political systems such as military dictatorships and authoritarian regimes. The transition to democracy involved national contexts,institutions, economic development, and that shaped the outcome (225). Although democracy is now more positive than how Latin American initially began, certain aspects of the state are not as democratized as others. In the general sense democracy is embedded in Latin American states and have accommodated democratic norms (250). Elections now function in a stable manner and governments easily rotate without dispute (250). Latin America is on the correct path to democratization however has not completely made the transition. There are still many issues
Mignolo, W. D. (2005). The Idea of Latin America (pp. 1-94). Malden, MA: Blackwell Publishing.
Makwana, R. (2006). Globalization: neoliberalism and economic globalization. Retrieved April 05, 2014, from Share The World’s Resources website: http://www.stwr.org/globalization/neoliberalism-and-economic-globalization.html
Much G. L., 2004, Democratic Politics in Latin America: New Debates and Research Frontiers, Annual Reviews
Firstly, there is a need to understand what is meant by development. It is defined as “the continuous and positive change in the economic, social, political and cultural dimensions of the human condition, guided by the principle of freedom of choice and the limited capacity of the environment to sustain such change.” (Sharpley, 2003: 8-7). Sharpley (2000) explains how theories of development have progressed; Firstly the ‘Modernisation Theory’ (1950s- 1960s), in which societies are seen to switch from traditional to modern only through economic growth. Next is the ‘Dependency Theory’ (late 1960s), this takes into account the historical and economic structures of developing countries, distribution of benefits, social players such as local elites, state interests and private companies, and situations in which an economy and development of a country can be conditioned by a more dominant country (Santos, 1970). The ‘Neo Classical Counter Revolution theory’ (1980s) was made to fit in with global events such as the economic depression, and development policies that build upon dependence on free market. Finally, ‘Sustainable development’ (late 1980s) is the theory that creates the encouragement for development of many developing countries. This theory aided by government policies of backings, tax breaks, and incentives. These theories have developed through growing knowledge of evolving processes, and dismissal of past theories (Sharpley, 2000).