Social inequalities without class cleavages in Latin America’s neoliberal era

Social inequalities have deepened in Latin America over the past several decades, yet an erosion of class cleavages has occurred in the political arena. During the era of import-substitution industrialization (ISI), “stratified” cleavage structures based on class distinctions emerged in a subset of Latin American countries where party systems were reconfigured by the rise of a mass-based, labor-mobilizing party. These nations typically experienced more severe economic crises during the transition from ISI to neoliberalism than nations that retained elitist party systems with “segmented,” cross-class cleavage structures. They also experienced greater political upheaval, as neoliberal critical junctures produced an erosion of stratified cleavages along their structural, organizational, and cultural dimensions in the labor-mobilizing cases, while leaving the segmented cleavages of elitist systems relatively unscathed. The Latin American experience differs from that of Europe, where strong labor movements and labor-backed parties were associated with superior economic performance during periods of economic adjustment. It also challenges Duverger's notion of an organizational “contagion from the Left,” as the dramatic weakening of labor movements and the shift away from mass-based party organizations have caused party systems to converge on elitist organizational models during the neoliberal era.     

Latin America's Left Turns: beyond good and bad

In rapid succession leftwing parties have been elected to government in some of the most important countries in the Latin American region. I challenge the view that there are two distinct variants of the left—one populist, the other social democratic—and argue that variation on the left reflects the diverse conditions under which these forces emerge and evolve. I outline common features shared by the left in Latin America; suggest how the concept of populism and analysis of social movements can help explain this variation; and show how the left's commitment to egalitarianism, balancing markets, and, in some cases, its appeals to the constituent power of the people enabled it to benefit from disillusionment with the results of neoliberalism, the poor performance of democratic governments in Latin America, and the evolving international context.     

Gender and institutional strengthening: the World Bank's policy record in Latin America

This article examines the gendered nature of institutional strengthening policies at the World Bank, as part of an attempt to analyse what role gender plays in the institutionalist turn within development policy. It focuses on three snapshots of Bank action wherein debates about gender and institutional strengthening are particularly pertinent: Washington, DC policy texts and Presidential speeches; gender policy enacted in the Latin American and Caribbean region; and an Argentine project loan on social capital promotion and family strengthening. Two themes emerge from these sites: (1) that couplehood between men and women has been identified as a key informal institution necessary for development; and (2) that gender reform has been positioned as an institutional change issue requiring attention to issues such as social marketing. New norms about gender interaction thus emerge as an explicit part of the Bank's reform agenda, and are shaping project experiences across Latin America.     

Women’s work and development in Latin America

The discussion explores the problem of women's employment patterns under capitalist development in Latin America, first by analyzing the way in which women's work has been conceptualized within modernization theory. It then goes on to examine the 2 types of work in which most Latin American women are engaged -- domestic service and informal work such as selling produce and taking in laundry -- to provide evidence for challenging modernization theory and for developing a more useful approach. Subsequently, the discussion considers women's domestic and informal work within the context of capitalist development, which provides some insight into the broader structures shaping women's employment. Finally, the discussion proposes some reconceptualizations of women's work and development. Modernization theorists analyze women's work in the cities within a variety of constructs, interpreting it as a backward manifestation of traditional society, a reflection of women's inadequate training for the modern sector, an indication of women's primary orientation to the family, or as a phenomenon that is too tangential to warrant examination. The primary assumption is that modernization improves women's status and the conditions of their lives as it brings greater productivity, more advanced technology, and more highly differentiated institutions. Assumptions concerning women's absorption into the modern sector and the equalization of work roles between men and women are not borne out by actual employment trends, which reveal the persistent concentration of women in domestic work, informal jobs, and the lower-paying service jobs. Despite their predominance, domestic service and informal jobs are infrequently included in employment statistics and are virtually ignored in studies of development, yet these 2 types of work are the primary forms of work for Latin American women. Even when modernization theorists recognize the proliferation of informal and domestic service jobs, they see it as part of a progressive development stage, with displaced rural laborers becoming incorporated into the modern sector by way of informal jobs. In most Latin American countries, rural women become a permanent part of the services and the informal labor market when they move to the cities. There is little sign of their transition to industrial employment. In general, capitalist development marginalizes Latin American women, who in several important ways lose status. The range of pursuits considered women's work should include their activities within the infromal labor sector. Informal work is still virtually unexplored, especially as it relates to wage work in underdeveloped countries. Informal labor is not registered in the census, nor is it included in the gross national product. Yet, it is a major component of women's work. Domestic service and infromal jobs should be seen in relation to other forms of labor and to total social production.     

Latin American environmentalism: Comparative views

This article examines three common generalizations from the literature on Latin American environmentalism. The validity of these generalizations, structured as hypotheses, is tested with four case studies from Costa Rica, Mexico, Venezuela, and Brazil. The first generalization is that tensions arise between international environmentalists principally concerned with wildlands conservation and national environmentalists engaged in a broader array of local and domestic issues including urban environmental quality and access to natural resources. The second is that environmental groups in Latin America are elitist in structure and participant base. The third is that the particular tactics employed by environmentalists will be closely tied to the relative openness of their nation’s political system. Through a cross-disciplinary case study approach we find the first two hypotheses quickly break down upon closer inspection, while the third is supported. We suggest a modified framework for interpreting environmental activism in the region, one that weights the role of the state as well as the competing strategies employed by grassroots, private voluntary, and professionalized environmental groups. Latin American environmentalism is highly diverse, presenting many faces in different time periods and different countries. Developing one general theory of environmentalism in Latin America is impossible, but more specific categorizations of the middle range may be achievable.     

Constructing a social safety net in Africa: An institutionalist analysis of colonial rule and state social policies in Ghana and Côte d’Ivoire

This article attempts to explain why, despite nearly identical cultural and economic landscapes and the potentially homogenizing pressures of globalization, social policies differ in Ghana and Côte d’Ivoire, two neighboring countries in West Africa. In Ghana, the government has generally attempted to strengthen the informal social welfare systems of the extended family and community through a more decentralized social policy, whereas the government in Côte d'Ivoire has tried to replace these informal social networks with the centralized arm of the bureaucracy. The article shows how different legacies of colonial rule produce these divergent social policies in a complex and iterative process over time. While domestic institutions do mediate the effects of globalization, the domestic factors highlighted in this article are not the formal political institutions cited in most studies. Rather, the analysis reveals the critical role of informal institutions, or normative frameworks, that existed under colonial rule and continue to endure in the post-colonial state. The article also contributes to current theories of institutions by showing how formal and informal institutions dynamically interact in the construction of the state and the African family.     

Work Contracts and Earnings Inequality: The Case of Chile

Great social inequality has been one of the worrisome features of economic development in Latin America. This study focuses on Chile, one of Latin America's fastest growing economies with one of the highest levels of income inequality during the 1990s. Using micro-level data from the 1994 and 2000 Encuestas de Caracterización Socio-Económica, this article examines the role of work contracts in explaining male and female earnings and earnings inequality among wage and salary workers over the second half of the 1990s. The analysis distinguishes between wage and salary work without a work contract – referred to as ‘informal’ work, and wage and salary work with a work contract. Within the latter group, the study further differentiates by the type of work contract held, such as permanent and a variety of contingent work contracts. The findings reveal that the majority of employees in informal and contingent wage and salary work arrangements earned significantly less than their permanent counterparts. Additionally, informal and contingent wage and salary work arrangements accounted for a small, although increasing, fraction of male and female earnings inequality from 1994 to 2000. Finally, the proliferation of seasonal, fixed-term, and informal wage and salary work arrangements has been one of the few economically significant factors in explaining changes in male and female earnings inequality over the second half of the 1990s.     

Environmental politics in Chile: Legacies of dictatorship and democracy

Standing at the forefront of Latin America's political and economic liberalisation, Chile is held up as a model for the developing world. First in the region to embrace a boldly neoliberal development strategy, Chile's military dictatorship also peacefully gave way to stable, civilian rule and comparative economic success. However, the lens of environmental politics reveals a disturbing underside to the Chilean miracle. Environmental policy, institutions and participation are shaped and constrained by ominous legacies of history, dictatorship, and an economic orthodoxy inimical to sustainability. Democratic rule has opened political space, yet new environmental institutions and procedures exhibit inherited elitist and exclusionary features. Chile's environmental movement likewise demonstrates promise and innovation, but remains grounded in a civil society weakened and atomised by dictatorship and incomplete transition. Still, as the environmental costs of Chile's resource-extractive, export-led development mount, environmental politics may yet present a vital opportunity for social change.     

Liberalization and ethnic conflict in Latin America

Most contemporary analysts explain ethnic identity as a socially rooted phenomenon which can be catalyzed by changes in both economic and political conditions. Taking the 1982 debt crisis as a main triggering event, this article analyzes the relationship between economic adjustment and increasing levels of indigenous mobilization in Latin America. Through a comparison of the Bolivian, Peruvian, and Mexican cases,the analysis reveals wide variation in the types and levels of ethnic conflict in the region. Explanations for these differences center on the timing and content of economic adjustment policies, and on the institutional opportunities available for expressing and channeling economic and political demands. The article concludes that political and economic liberalization are likely to clash when shrinking the state also removes channels for popular participation; moreover, when those that bear most of the adjustment burden are also challengers to national identity, states ignore this challenge at their peril. Alison Brysk is assistant professor of politics at the University of California at Irvine. Her book,The Politics of Human Rights in Argentina, was published by Stanford University Press. Various aspects of her current research on Latin American indigenous rights movements have appeared inComparative Political Studies, Latin American Perspectives, andPolity. Carol Wise is assistant professor of political science at Johns Hopkins University's School of Advanced International Studies. She has published articles on Latin American political economy inInternational Organization, Latin American Research Review, and theJournal of Latin American Studies; she is the editor of a forthcoming collection entitledThe Post-NAFTA Political Economy: Mexico and the Western Hemisphere.     

Shifting the Risk: New Employment Patterns, Informalization, and Women's Work

The paper argues that the processes of informalization of jobs observed during the past decades have affected both high and low income countries. Starting at the micro level of the firm, the emphasis is on how economic restructuring and globalization have generated the growth of informal activities—resulting in the vicious circle of poverty and economic insecurity for an important proportion of the population. The second part of the paper analyzes the growth of women's participation in informal activities, emphasizing that there are contradictory forces at work regarding women's employment. Despite a stubborn persistence of gender discrimination and obstacles to women's advancement, progress has taken place on several fronts, such as in the education field and in the absorption of female labor in many production processes. The paper concludes by pointing out that poverty eradication programs must emphasize the need to generate decent jobs without which these programs will continue to be ineffective. In addition, re-distributive mechanisms and different forms of social protection are needed to counteract the forces and policies generating economic insecurity.     

From authoritarianism to political democracy in Grenada: Questions for U.S. policy

Beginning as early as 1498 when Grenada had its initial contact with metropolitan forces, this island state has experienced little of the political democracy U.S. President Reagan pledged to restore to the country as part of the 1983 intervention. Yet, for the 1984 elections that followed the toppling of the remaining vestiges of the 1979–83 revolution, the United States and selected Caribbean allies attempted to amalgamate a party as an alternative to the Grenada United Labour Party (GULP) and the remaining revolutionary forces. The resulting New National Party (NNP) was electorally successful in 1984 but by 1987 defections from the Party had produced a base for the National Democratic Congress (NDC). In 1989 the NNP again divided. It was thus predictable that the 1990 elections would not return either wing of the National Party and instead would result in a coalition government led by the NDC. Chances for real political democracy in Grenada are improved but will not be easily realized in the face of severe economic crisis and a potentially weak government. The economic crisis could well promote current movements toward increased regional integration. It is important that the 1983–1984 pledge of the United States to promote democratization in Grenada be honored. W. Marvin Will is associate professor of comparative politics in the Department of Political Science at the University of Tulsa. He is past president of the Midwest Association of Latin American Studies and a founding member of the Caribbean Studies Association. Will has done extensive field research in the Caribbean and is the recipient of a 1991–92 Fulbright Research Fellowship for Caribbean Research. He is co-author of a forthcoming book on the Pacific and Caribbean Basins.     

The new business environment of latin america and the caribbean

Latin America and the Caribbean Region experienced dramatic changes in the 1990s. Politically, all but one country, are governed by a democratically elected government. Economically, import substitution industrialization policies (ISI) followed in the past, were replaced by liberalization programs aimed at reducing inflationary pressures and creating a competitive environment.

The significant increase in capital flows to Latin America in one single year, 1990, buried the 1980s as the “lost decade,” and the successful implementation of privatization programs region-wide prompted to affirm that the 1990s might constitute the “Latin America's decade.” Where does the euphoria come from? Is there any implicit promise to be derived from such international capital flows? Will the pattern be sustained? Has Latin America begun a new era? Are unfolding events on defiance of fundamentals?

These and many other questions can be raised regarding the spectacular transformation of Latin America and the Caribbean, particularly when analysts still debate about the Mexican crisis of 1994, investors eagerly pursue the agenda of a second privatization wave, experts around the world get fascinated with the high-tech push found in Latin America, bankers apply Latin American lessons to deal with the currency crisis in Asia, and casual observers recognize the value-creation process added by Latin American entrepreneurs who challenge the most adverse circumstances. Indeed, Latin America and the Caribbean is a land full of promises and contrasts, where there exists a head to head competition between globalization and nationalism, the haves and the have-nots, capitalism and communism, literature and high-technology, markets and governments, East and West, North and South, myth and reality, and … “despair and hope.”

There is no question, however, that Latin America and the Caribbean, being she a detached wide-land, is a region of great opportunity. Since the external debt crisis of 1982 and its aftermath, democracy, open markets, economic reform and privatization have blended to offer great expectations and opportunities for business and investment in the region. The new vision strongly questioned the status quo to render a new business environment to open the doors and light up the roads of the upcoming millennium.

It is the purpose of the International Journal of Public Administration to offer to its readers, for the very first time, a special issue devoted entirely to the discussion of the new business environment of Latin America and the Caribbean. We are, therefore, grateful to all the authors who generously are sharing with us the findings from their scholarly research. Given the far reaching consequences of their contributions, we, as guest editors of this special issue, had no other choice but to incorporate the fruits yielded by this symposium of thirty-seven papers in four issues in one single volume. The papers have been sorted according to the following four focal points: Privatization of State Owned Enterprises; Mexico; Economic, Financial and Foreign Investment Issues; and Economic Integration, Trade and Cultural Issues.

Part I of this special issue on “The New Latin American Business Environment” looks at one element of the broad economic strategy followed by most Latin American countries: Privatization of State Owned Enterprises. The role of governments is to provide the framework that will allow the private sector to create wealth. Notwithstanding, this partnership between the public and private sectors must ensure the inclusion of the poorer sections of the population. In many ways, the long-term sustainability of these economic programs will largely depend on this. The ten papers selected for this part, provide insight on how this phenomenon is affecting different Latin American countries.

The first paper by Shamsul Haque argues that there is a need to analyze the social consequences of privatization programs. Further research is needed to identify the main advocates and beneficiaries of privatization programs. According to the author, “critical economic conditions have not improved significantly after privatization, and in many instances, the conditions have deteriorated.” About fifty percent of Latin America's population of 470 million people live under poverty.

The late Sister Martin Byrne (1) documents in her paper, “Cananea Consolidated Copper Company from Nationalization to Privatization: 1972-1991 ,” the problems of ownership and management faced by La Cananea, a Mexican copper mine. Sister Byrne argues that “The Cananea mines were profitable under entrepreneurial and MNC ownership, but proved to be a financial drain on the government during the paraestatal period.”

The third paper by Garcia and Dyner, examined the reform and regulation of electricity in Columbia. According to the authors, the regulatory framework adopted by the government is going to determine the success of these programs. Furthermore, “the challenge is the change of public intervention in the sector, so that it regulates, supports, and supervises the decentralized activities of the firms, and liberates resources to be invested in other areas.”

Walter and Gonzalez provide interesting philosophical arguments on technology and human resources management derived from the cases of privatized companies in Argentina. The authors consider two variants, “systemic modernization and revamping of existing teams” to invite a reopening of the old debate on technological blending. They argue, however, that “to compete you do not necessarily need to ‘ be on the frontier.’”

Joan B. Anderson examines, the “Privatization, Efficiency and Market Failure: Transforming Ecuador's Public Sector,” privatization in Ecuador through the shift experienced by development theory with respect to the role of the public sector. In this paper the author points out that “while careful privatization can be positive, privatizing monopolies like the electric utility and/or quasi-public goods like highways are likely to be detrimental to long run economic development.”

Doshi identifies the successes and failures of the privatization program in Mexico by analyzing the cases of Mexicana Airlines, Aeromexico and Telmex. The author argues that even though the government was able to sell a number of state owned enterprises, a “successful” privatization program required appropriate macroeconomic policies and defining the role of foreign investment in economic development. One can argue then, that even though the size of the state is shrinking, its role is becoming more important.

The article by Vetter and Zanetta analyze also the case of Argentina. The authors argue that in order to consolidate the economic reforms implemented by the national government, provincial reform has to take place. A number of important lessons were identified.

John M. Kirk and Julia Sagebien present, in “Cuba's Market Rapprochement: Private Sector Reform - Public Sector Style,” the highlights of Cuba's process of transition towards a market economy by analyzing the conditions that lead to a market opening as well as the ends, the means and the actors of the ensuing process of economic reform.

Walter T. Molano contributes a paper, “The Lessons of Privatization,” based on his book The Logic of Privatization: The Case of Telecommunications in the Southern Cone of Latin America by looking at privatization as a process that may end up in varied outcomes as seen from microeconomic-, macroeconomic-, and political perspectives of analysis.

The focal point of Part II is Mexico. It is very clear that since the beginning of the decade, Mexico has made major efforts to transform its economy in order to play a more significant role in the global economy. Different attempts have been undertaken leading to: first, address the aftermath of the debt crisis of 1982; second, modernize and open the economy through a structural change that have included, among other programs, privatization, deregulation, fiscal deficit reduction, and trade liberalization: and third, change the political landscape.

Ephraim Clark models, in his “Agency Conflict and the Signaling Snafu in the Mexican Peso Crisis of 1994,” the conflict as a government held option to default and introduce signaling by assuming that the Mexican government had monopolistic information on the economy's true situation. The author argues that “if steps had been taken in late 1993 and early 1994, the crisis element of the adjustment could probably have been avoided.”

Blaine's article examines the role of foreign capital in economic development. By studying the Mexican case, the author answers a number ofvery important questions: How are once protected markets going to react to a large inflow of foreign capital? How did Mexican authorities deal with these inflows? What are some of the lessons that could be derived from the Mexican experience?

Hazera's paper discusses the history and legal basis of Mexican financial groups. On the basis of various stock market and financial statement data, an examination is also made of the groups’ evolution from 1991 to 1994.

Eugene M. Salorio and Thomas L. Brewer consider, in “Expanding the Levels of Analysis of FDI for Improved Understanding of Policy issues: The Case of Mexico,” both macro-, and micro-level shifts of analysis which mutually complement one another, and yield, for example, a “components profile” of disaggregated national level FDI flows which depends on the type of the project. The authors identify far reaching implications for public policy that may be extrapolated from the case of Mexico to the new business environment faced by the Latin American countries.

Francis A. Lees suggests also, from another angle, that the crisis of December 1994 could have been avoided because the financial disequilibrium was clearly evident by mid-1994 just be looking at Mexico's GDP and balance of payments.

C. Bulent Aybar, Riad A. Ajami, and Marca M. Bear provide a comparative study of the recent experiences of Mexico and Turkey. The authors identify common elements in the development and eruption of the crises to conclude that “under capital mobility strong internal and external shocks may lead to explosive crises … even though overall macroeconomic balances are sound.”

James P. D’Mello shows in “An Analysis of Mergers and Acquisitions in Mexico: 1985-1996,” that the Mexican crisis has led to an escalation of corporate restructuring such as mergers, acquisitions and joint-ventures.

Jiawen Yang joins the current debate on the causes of the recent Mexican financial crisis by arguing that “capital inflows that are not well absorbed by the private sector will cause financial instability under a fixed exchange rate regime.”

Part III of the new business environment of Latin America and the Caribbean includes ten papers on Foreign Investment, Economic and Financial issues which add significantly to the understanding of the overall transformation carried out in recent years by this region of the world.

Christopher Korth and Ajay Samant, and Craig A. Peterson andK. C. O’Shaughnessy recognize, respectively in the following two papers, “American Depositary Receipts (ADRs) from Latin America: An Opportunity for American Investors.” and “Financial Investment Via ADRs in Mexico and South America,” the usefulness of ADRs for operationalizing international diversification.

Juan Espana surveys the literature on models and tools currently used to predict exchange rate movements, and aims to suggest market solutions, economic policy measures and institutional arrangements to currency crises. The author analyzes the origin and evolution of the 1994 Mexican Peso crisis, its contagion effects on other Latin American economies, and the measures taken by the affected countries to manage the crisis.

Prakash L. Dheeriya and Mahendra Raj provide, in “An Investigation in Exchange Rate Behavior of Emerging Countries,” insights on the role that exchange rate risk plays by identifying similarities and differences through international comparisons.

Kumar's paper examines the important role of foreign direct investment in promoting economic development. The emphasis here is on the transfer of technology through foreign direct investment.

Neupert and Montoya study the characteristics of’ Japanese foreign investment in Latin America, with a focus on Brazil and Mexico. The authors looked at the preferred modes of entry and the post-entry performance of these subsidiaries.

Thomas M. Fullerton, Jr. shows, in “Currency Movements and International Border Crossings,” through two ARIMAmodels that “northbound bridge traffic to El Paso is nonrandom and follows fairly well defined patterns each year.”

Trevor Campbell makes, in “A Note on the Current and Capital Accounts Compilation of Barbados under the Fourth and Fifth IMFEditions,” a comparison with respect to the composition and structure of the current and capital accounts of Barbados.

Janet Kelly and Alexeis Perera argue, in “Antitrust Policy in a Hostile Environment: Institutional Building in Venezuela's Procompetencia,” that the theories of bureaucracy in Latin America generally stress institutional weakness, political volatility and the politicized nature of government agencies which motivated, in Venezuela, the creation of the anti-monopoly agency called “Procompetencia.”

G. Scott Erickson and Andrea Nhuch recommend in ‘The Latin American Business Environment: Patent Protection Issues” a general hybrid system to deal with patent rights issues.

Finally, Part IV deals with a blend of Trade, Economic Integration and Cultural issues. Since much of the world still tends to view Latin America and the Caribbean in terms of stereotypes, it seems appropriate to end this special issue on the new business environment of the region with a group of papers that revisits the rich mosaic of Latin America, and permits appreciate her new reality.

Isaac Cohen argues, in “Hispanics and Foreign Policy.” that though the primacy of economics in Hemispheric relations provides an opportunity for Hispanic businesses, yet this community will have to act deliberately to benefit from the opportunities that are emerging.

Eva Kras contributes, in “The Viable Future of Mexico and Latin America: A New Business Paradigm,” with a South looking North approach for doing business that challenges the traditional view of business relations.

Guillermo Duenas argues, in “Cultural Aspects in the Integration of the Americas,” that managing cultural integration successfully requires a process of “intercultural learning.”

Andres A. Thompson, Francisco B. Tancredi and Marcos Kisil introduce, in “New Partnerships for Social Development: Business and the Third Sector,” the novel argument that corporate philanthropy can make the difference in social development because grantmaking is still the least frequent used strategy in Latin America and the Caribbean region.

Chris Robertson, Pol Herrmann and Kevin Duffy measure, in “Exploring Perceptions of Technology Between the United States and Ecuador,” perceptions of technology on the basis of the typology of motivators and inhibitors of technological growth.

Melissa H. Birch argues, in “Mercosur: The Road to Economic Integration in the Southern Cone,” that Mercosur represents, in contrast to the historical record of economic integration in the region, an adaptation to the contemporary political climate.

Wu and Longley discuss the rationale for extending NAFTA to Chile. Their study examines also how NAFTA negotiators may address issues such as trade and investment rules, intellectual property rights, and labor and environmental standards among other things.

Roger Kashlak and Srinath Beldona identify, in “Partner Reciprocity, Telecommunications Flows and Balance of Trade Patterns Between the United States and Latin America,” partner reciprocity as the issue at the core of the international long-distance industry.

Ines Bustillo extends, in “Overview of Economic-wide NAFTA Models” computable general equilibrium models to the case of NAFTA.

We hope that this special issue is informative and interesting to business-decision makers, regulatory policy makers, and students concerned with gaining an understanding of the ongoing transformation of Latin American and the Caribbean.

Finally, we are again most grateful to the contributors of articles for making this special issue possible. We would also like to thank Jack Rabin, editor-in-chief of the International Journal of Public Administration, for trusting us the delicate mission of providing to the readers a fresh view of the new business environment of Latin America and the Caribbean.     

privatization in latin America: the other side of the story

In line with the current global trends, most Latin American countries have adopted promarket reforms, including privatization, deregulation, and liberalization, under the auspices of various market-friendly regimes and international financial agencies. They carried out privatization exercises based on the rationales that privatization would enhance competitiveness and efficiency, overcome economic stagnation and fiscal crisis, eradicate poverty and unemployment, reduce external debt, and increase foreign investment. In opposition to these rationales, however, the actual socioeconomic conditions in most Latin American countries have hardly improved, and in many cases, the situation has worsened. This article attempts to offer a more critical account of the outcomes of privatization by evaluating the trends of economic realities in Latin American countries before and after privatization programs were adopted. It is found that except for a few cases, most Latin American economies have not performed well during the privatization period in terms of various economic criteria. The article then explores why privatization remains a favorite policy option in Latin America despite its dismal outcomes during the policy period.     

Immigrant Social Workers and Transnational Practices: The Example of Latin Americans in Switzerland

This article explores how Latin American social workers living in Switzerland develop transnational practices in their professional and civic life. It focuses more particularly on the forms of support that these migrants provide to their societies of origin or to their immigrant compatriots through the activities they carry out either through their job, through their extra-professional commitments, or by combining these two dimensions of their existence. From interviews with 17 Latin American social workers, a typology of four forms of transnational commitment is suggested: local social work and transnational civic activity, professional transnationalism, transnational alternative professional exchanges, and “glocal” social work.     

Seasonal migration and symbolic power: the case of Muslim Meskhetians from Nasakirali

The repatriation and inclusion of Muslim Meskhetians, forcefully displaced by the Soviet government from Georgia to Central Asia during the 1940s, is still ongoing. In 1977, some Meskhetian families settled in the village of Nasakirali in western Georgia. The Soviet Georgian government built houses for the repatriates in a separate district, referred to as the “Island.” The location acquired a symbolic meaning for Meskhetians. After 40 years of repatriation, Meskhetians still remain “islanders:” isolated from the majority population, speaking a different language, practicing a different religion, and facing different employment opportunities. This study explores the coping mechanisms used by Muslim Meskhetians to sustain themselves and their families and improve their social conditions in a strictly Christian post-socialist country where “Islam is taken as a historical other.” The study primarily asks how employment/seasonal migration in Turkey changed the lives of Meskhetians by adapting their social, cultural, economic, and symbolic capital and became the only viable solution for overcoming social marginalization. The study explores how informality allows social mobility, changes gender attitudes, and helps “islanders” reach the “mainland” by becoming “Halal” – truthful and reliable. The study applies Pierre Bourdieu’s concepts of “capital” and “symbolic power” for understanding Meskhetians’ informal economic practices.     

What Drives Japanese INGOs to Operate in Latin American Countries?

International nongovernmental organizations (INGOs) provide essential aid and public services to less-developed countries. Although most literature focuses on Western INGOs, Asian INGOs have also become globally active. Little is known about what motivates INGOs to provide services in other regions, such as Latin America. In this study, we seek to identify the criteria Japanese INGOs use to select Latin American recipient countries. We propose that Japanese INGO operational location decisions are a function of Japanese foreign policy agenda, Japan-recipient country business relations, and recipient country’s need and liberalization. Using data from Japanese INGOs working in Latin America and 24 Latin American countries on contextual, macroeconomic, and demographic indicators, we find that the significant factors driving INGO decisions to operate in Latin American countries are need and the presence of Japanese businesses in the recipient country. Results have practical implications for foreign aid targeting and economic development.     

Formal and Informal Social Participation of Public,Non-Profit,and Private Employees

Although existing research has focused on the link between employee sector and formal volunteering, no differentiation is made between formal and informal social participation. This study compares the formal and informal social participation of public-, non-profit-, and private-sector employees using recent data from two sources. The results indicate that both government and non-profit employees report higher levels of formal and informal social participation, as measured in several ways. Findings provide a more complete understanding of the multifaceted ways in which citizens can get involved, and emphasize the importance of motivational differences.     

Recent narcotics and mafia research

Abstract

Research into narcotics‐related issues is underway all over the world. No country can afford to ignore the social and economic consequences of drug production, distribution, consumption, or the laundering of the profits thereof. The article examines recent and ongoing research in Latin America, the United States, the United Kingdom, and within the context of the European Community. Latin American studies relate drug production to wider problems of economic development, whereas typical “consumer country” studies are more concerned with criminological aspects and demand reduction policies. The drugs/crime link is seen to be closely bound up with the illegal context of the drugs market, thus the option for legalization is considered. The economic growth of the Italian mafia is explained. The author describes recent international agreements on money laundering and precursor chemicals, and concludes by stressing the value of international cooperation on all aspects of narcotics research.     

The Presidentialist Tradition in Latin America

Abstract

The diffusion of presidentialism to Latin America has led to its distortion. The North American constitutional pattern, termed presidentialism under separation of powers and its most distinguishing feature, presidential leadership, while modeled in Latin America, has rarely led to democratic–constitutional government a la the United States. The institution of the presidency in Latin America is also typical for nondemocratic regimes in the region. One of the most widely accepted and widely professed facts in Latin American politics is the dominant role of the president but, curiously, most discussions of presidentialism are limited to the US and comparisons with Great Britain. Few studies of Latin American chief executives lend shape to the corpus of scholarly literature, despite the region's long experience and ejecutivismo. The gap, and this article, should be taken as a stimulus for more systematic explication, analysis, and research.