The New Economic Model in Latin America and its Impact on Income Distribution and Poverty

376 Pages·1996·36.116 MB·English

by  Victor Bulmer-Thomas (auth.)

THE NEW ECONOMIC MODEL IN LATIN AMERICA
AND ITS IMPACT ON INCOME DISTRIBUTION AND
POVERTY
INSTITUTE OF LATIN AMERICAN STUDIES SERIES
General Editor: Victor Bulmer-Thomas, Professor of Economics and
Director, Institute of Latin American Studies, University of London
The Institute of Latin American Studies, a member of the School of Ad
vanced Study of the University of London, was founded in 1965. The
Institute is dedicated to research on Latin America in the social sciences
and humanities. The purpose of this series is to disseminate to a wide
audience the new work based on the research programmes and projects
organised by academic staff and Associate Fellows of the Institute of
Latin American Studies.
Victor Bulmer-Thomas (editor)
THE NEW ECONOMIC MODEL IN LATIN AMERICA AND ITS
IMPACT ON INCOME DISTRIBUTION AND POVERTY
Victor Bulmer-Thomas, Nikki Craske and M6nica Serrano (editors)
MEXICO AND THE NORTH AMERICAN FREE TRADE
AGREEMENT: WHO WILL BENEFIT?
Walter Little and Eduardo Posada-Carb6 (editors)
POLITICAL CORRUPTION IN EUROPE AND LATIN AMERICA
Eduardo Posada-Carb6 (editor)
ELECTIONS BEFORE DEMOCRACY: THE HISTORY OF
ELECTIONS IN EUROPE AND LATIN AMERICA
Rachel Sieder (editor)
CENTRAL AMERICA: FRAGILE TRANSITION
John Weeks (editor)
STRUCTURAL ADJUSTMENT AND THE AGRICULTURAL
SECTOR IN LATIN AMERICA AND THE CARIBBEAN
The New Economic
Model in Latin America
and its Impact on
Income Distribution
and Poverty
Victor Bulmer-Thomas
Institute ofL atin American Studies
University ofL ondon
St. Martin's Press in association with
Palgrave Macmillan
New York
ISBN 978-0-333-66274-8 ISBN 978-1-349-24520-8 (eBook)
DOI 10.1007/978-1-349-24520-8
THE NEW ECONOMIC MODEL IN LATIN AMERICA AND ITS IMPACT ON INCOME
DISTRIBUTION AND POVEIITY
Copyright © 1996 by Institute of Latin American Studies
Softcover reprint of the hardcover 1st edition 1996 978-0-333-65840-6
All rights reserved. No part of this book may be used or reproduced
in any manner whatsoever without written permission except in the
case of brief quotations embodied in critical articles or reviews.
For information, address:
St. Martin's Press, Scholarly and Reference Division,
175 Fifth Avenue, New York, N.Y. 10010
First published in the United States of America in 1996
Library of Congress Cataloging-in-Publication Data
The new economic model in Latin America and its impact on income
distribution and poverty I edited by Victor Bulmer-Thomas: with a
preface by Alejandro Foxley.
p. em.-(Institute of Latin American Studies series)
Includes bibliographical references and index.
ISBN 978-0-312-16038-8 (cloth)
I. Latin America-Economic policy. 2. Latin America-Economic
conditions-1982- 3. Income distribution-Latin America.
4. Poverty-Latin America. I. Bulmer-Thomas, V. II. Series.
HCI25.N483 1996
338.98--dc20 96-490
CIP
CONTENTS
Acknowledgements vii
List of Contributors viii
List of Tables X
List of Figures xiii
Preface Alejandro Foxley 1
Chapter 1 Introduction
Victor Bulmer-Thomas 7
PART I. TIIEMATIC STUDIES
Chapter 2 The New Trade Regime, Macroeconomic
Behaviour and Income Distribution
in Latin America
E.V.K. FitzGerald 29
Chapter3 Chronic Fiscal Stress and the Reproduction of
Poverty and Inequality in Latin America
Laurence Whitehead 53
Chapter4 The New Economic Model and Labour
Markets in Latin America
Jim Thomas 79
Chapter 5 The New Financial Regime in Latin America
Raw Ferruindez 103
Chapter6 International Capital Flows to Latin America
Stephany Griffith-Jones 127
v
PART II. CASE STUDIES
Chapter? The Distributive Impact of the
New Economic Model in Chile
Christopher Scott 147
Chapter 8 Income Distribution and Poverty in Mexico
Humberto Panuco-Laguette
and Miguel Szekely 185
Chapter9 Honduras, The New Economic Model
and Poverty
Andy Thorpe 223
Chapter 10 Inequality and Poverty in the Lost Decade:
Brazilian Income Distribution in the 1980s
Francisco Ferreira and Julie Litchfield 249
Chapter 11 The Manufacturing Sector in Latin America
and the New Economic Model
John Weeks 271
* * * * * * *
Chapter 12 Conclusions
Victor Bulmer-Thomas 295
Statistical Appendix 315
Bibliography 329
Index 359
vi
ACKNOWLEDGEMENTS
This book arose out of a Study Group held at the Institute of Latin American
Studies, University of London, in 1994/5. Meetings were held approximately
every month over an 18 month period. On each occasion one of the authors
presented a paper that had been circulated in advance. Revised versions were
sent to all members of the Study Group and were subsequently presented to an
international conference in May 1995 at which Dr. Alejandro Foxley was the
keynote speaker. The editor wishes to express his thanks to all participants in the
conference, in particular Suman Berry (World Bank) and Barbara Stallings
(Economic Commission for Latin America and the Caribbean).
The Study Group included, in addition to the contributors to this book,
a small number of specialists based in the United Kingdom. Among these were
Sarah Bradshaw (London School of Economics), Jean de Bolle (Foreign and
Colonial Emerging Markets), Sylvia Chant (London School of Economics),
David Knox (former Vice-President for Latin America and the Caribbean at the
World Bank), Peter Lloyd-Sherlock (London School of Economics), Sheila
Page (Overseas Development Institute), and Rosemary Thorp (Oxford Univer
sity). Their comments and criticisms were very helpful for the authors in this
volume.
vii
LIST OF CONTRIBUTORS
Victor Bulmer-Thomas is Director of the Institute of Latin American Studies
and Professor of Economics, Queen Mary and Westfield College, London
University.
Raul Fernandez is a Research Fellow at the Centro de Estudios de Estado y
Sociedad (CEDES) in Buenos Aires.
Francisco Ferreira is at the SunTory International Centre for Research in
Economics and Related Disciplines (STICERD) and a doctoral candidate at the
London School of Economics.
E. V. K. FitzGerald is Director of the Centre for International Finance at Queen
Elizabeth House, Oxford, and a Fellow of St Antony's College, Oxford.
Alejandro Foxley is President of the Christian Democrat Party in Chile. From
1990-94 he was Minister of Finance for Chile.
Stephany Griffith-Jones is a Senior Research Fellow at the Institute of Devel
opment Studies, University of Sussex.
Julie Litchfield is a Research Officer at the SunTory International Centre for
Research in Economics and Related Disciplines (STICERD).
Humberto Panuco-Laguette is a doctoral candidate at Queen Mary and Westfield
College, London University.
Christopher Scott is Senior Lecturer in Economics at the London School of
Economics and an Associate Fellow of the Institute of Latin American Studies.
Miguel Szekely is at the Centre for International Finance, Queen Elizabeth
House, and a doctoral condidate at St Antony's College, Oxford.
Jim Thomas is Senior Lecturer in Economics at the London School of Econom
ics and an Associate Fellow of the Institute of Latin American Studies.
Andy Thorpe is Lecturer in Economics, Portsmouth University. From 1990-
1993, he was at the Universidad Nacional Aut6noma de Honduras.
viii
John Weeks is Director of the Centre for Development Studies, Professor of
Economics, School of Oriental and African Studies, London University and an
Associate Fellow of the Institute of Latin American Studies.
Laurence Whitehead is Official Fellow in Politics, Nuffield College, Oxford.
With Victor Bulmer-Thomas, he edits the Journal ofL atin American Studies.
ix