New directions in welfare: rights-based social policies in post-neoliberal Latin America

What happens to the politics of welfare in the Global South when neoliberal values are questioned? How is welfare re-imagined and re-enacted when governments seek to introduce progressive change? Latin America provides an illustration and a valuable entry point to debates about ‘interruptions’ of neoliberalism and the changing nature of social policy. Drawing on examples of disability policies in Ecuador and care provision in Uruguay, we argue that there is a ‘rights turn’ in welfare provision under the left that reflects a recognition that previous welfare models left too many people out, ethically and politically, as well as efforts to embed welfare more centrally in new patterns of respect for socio-economic and identity-based human rights. Given Latin America’s recent contestation of neoliberal development as well as its history of sometimes dramatic welfare shifts, the emergence of rights-based social provision is significant not just for the region but also in relation to global struggles for more equitable governance.     

Nationalist Versus Dependent Capitalist Development: Alternate Pathways of Asia and Latin America in a Globalized World

When compared to Latin America, Asian economies since 1980 have grown faster and have done so with relatively modest inequalities. Why? A comparison of Asia and Latin America underlines the superiority of the nationalist capitalist model of development, which has often been pursued more explicitly in Asia, over that of a dependent capitalist model, which has often been pursued in Latin America. In comparison to Latin America, the Asian model has facilitated higher and less volatile rates of economic growth and a greater political room to pursue social democratic policies. The “tap root” of these alternate pathways is relative autonomy from global constraints: states and economies in Asia have been more nationalist and autonomous than in Latin America.     

Citizen response to regional integration in the Americas: The cases of Costa Rica and El Salvador

This study examines public opinion in Costa Rica and El Salvador regarding regional integration in Central America. Recent efforts at regional integration as well as the response of the governments of the above countries to those efforts are reviewed. Public opinion toward regional integration is significantly more positive but less structured in El Salvador than in Costa Rica. Differences in the international and domestic contexts help to explain the differential responses in these two countries. Likewise, contextual factors help to account for differences between Central American and European publics in attitudes toward regional integration. Charles L. Davis is associate professor of political science at the University of Kentucky. His interests are Latin American politics and comparative political behavior. Matthew J. Gabel is assistant professor of political science at the University of Kentucky. His interests are European politics and the politics of regional integration. Kenneth M. Coleman is a former professor at the University of Kentucky, the University of North Carolina-Chapel Hill, and the University of New Mexico. His interests are Latin American politics and public opinion.     

Peasant participation and mobilization during economic crisis: The case of Costa Rica

During the three decades prior to the 1980s, the state-led development policies pursued by Costa Rica created a standard of living that was unique in Central America and among the most satisfactory in all of Latin America. However, the economic crisis of the early 1980s and the problems created by Costa Rica's foreign debt caused the nation's political and economic leaders to abandon the previous style of development and to the introduce neoliberal economic policies. The economic changes undertaken by Costa Rica in the 1980s were strongly supported by the International Monetary Fund, the World Bank, and the U.S. Agency for International Development (USAID). Among the social sectors most adversely affected by the opening to the international market were the small independent producers of basic grains and other agricultural crops primarily destined for the internal market. These peasant sectors were largely unorganized prior to the 1980s and they intensified their organizational efforts in direct response to what was viewed as the negative impact of the new economic policies. This article examines the economic crisis that engulfed Costa Rica in the early 1980s as well as the economic stabilization and structural adjustment programs that succeeded in easing the crisis and that will define the direction of development efforts in the 1990s. The bulk of the article investigates the attempts of the peasanty to organize and mobilize in order to influence the political system and to protect their economic interests. Costa Rica's principle peasant organizations are discussed and reasons are offered to explain the failure of peasant efforts to influence the formation of development policy. Gregg L. Vunderink recently received his Ph.D. in political science from the University of Texas at Austin. The recipient of a Fulbright-Hays research abroad award, the author conducted research in Costa Rica and Nicaragua in 1987 and 1988. He is currently a visiting assistant professor at St. Olaf College in Northfield, Minnesota 55057.     

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.     

Development jujitsu: Looking on the bright side

Whatever one concludes with respect to whether global standards of living are getting better or worse, it is undeniable that people everywhere are becoming more closely integrated into and dependent upon a global economic system over which they have no control. This is a consequence not of policy failures but of policy decisions. The richer, more powerful countries have always sought access to the poorer ones mainly in order to exploit them, and such exploitation has always been undertaken in the name of noble cause—in centuries past, most commonly saving souls, in the late twentieth century, development. That would not cease to be the case if people of selfless good will disassociated themselves from the official enterprise of development assistance. The challenge, then, for those who would turn the tables and promote the empowerment of poor communities is to take advantage of the cover story. If hypocrisy is the tribute vice pays to virtue, the tribute must at least be invested well. Jan Knippers Black is a professor of international policy studies at the Monterey Institute of International Studies. Previously she has been Research Professor of Public Administration at the University of New Mexico and Senior Research Scientist and Chairman of the Latin American Research Team in the Foreign Area Studies Division of American University. Her recent publications include:Latin America, Its Problems and Its Promise, 2nd ed. rev. (1991);Development in Theory and Practice; Bridging the Gap (1991); andDevelopment on a Human Scale (forthcoming). She has also published more than 100 chapters and articles in reference books and anthologies, journals, magazines, and newspapers.     

Pitfalls of power to the people: Decentralization,local government performance,and system support in Bolivia

Across the developing world, many governments have implemented political reforms—heavily promoted by international donors—designed to transfer greater power to subnational levels of government and to provide a more substantial policymaking and oversight role to citizens. Although economic analyses have frequently argued that such decentralization programs improve the efficiency of public expenditures, far less is known about their political impact. Based on an analysis of two large national public-opinion surveys from Bolivia, a country that has recently implemented one of the most comprehensive decentralization reforms yet attempted in Latin America, we analyze the role decentralized local institutions are playing in shaping citizen attitudes toward their political system. Our findings support the contention that decentralization can bolster citizen levels of system support at the national level. Equally important, however, we also demonstrate that the renewed emphasis on local government can have the opposite effect of producingmore negative views of the political system when the performance of local institutions falters. Jonathan T. Hiskey is assistant professor of political science at the Univeristy of California, Riverside. His most recent research focuses on subnational processes of political and economic development taking place across Latin America. Mitchell A. Seligson is Daniel H. Wallace Professor of Political Science, research professor of international studies, and professor in the Graduate School of Public and International Affairs at the University of Pittsburgh. His research centers on surveys of democratic values and behaviors in Latin America.     

The persistence of Neopopulism in Peru? From Fujimori to Toledo

This paper argues that Peru's Alejandro Toledo can be considered a neopopulist leader. Neopopulists seek to develop personalistic ties with the dispossessed, unorganised masses, while also appealing to international economic interests. By analysing Toledo's administration according to four categories—anti-political rhetoric and symbols, promises and policies, personalism, and mass support—I conclude that his strategy is largely, but not perfectly, consistent with neopopulism. Importantly, however, his strategy has failed to generate the all-important element of broad mass support. I further argue that Toledo faces three important contextual constraints: the absence of crisis, public weariness with neoliberalism and the reaction to Fujimori. These factors limit the prospects for successful neopopulist leadership in contemporary Peru. They also suggest that today's neopopulists in Latin America may require ever more nuance and creativity to mobilise support.     

Democracy and Development in a Globalized World: Thinking About Latin America from Within

The choice among paths that countries should follow has been a staple of political debates in Latin America and, over the past 40 years, Fernando Cardoso has brought his analysis to bear on these debates. This article summarizes and then assesses Cardoso’s argument about the choice of paths faced by Latin American countries, the consequences for democracy and development of following different paths, and the political position that is supported by this analysis of choices and their consequences. Though Cardoso explicitly supports the path of globalized social democracy over an anti-globalization option in the current period, I suggest that the current state of knowledge does not offer unequivocal support for the argument that choosing to follow the path of globalized social democracy—or that of anti-globalization—is the best political option for all countries in Latin America. Different countries might very well be doing what is best for them, given their circumstances, by following different paths.     

The viable future of Mexico and latin America: a new business paradigm

The objective of this special issue of the International Journal of Public Administration I understand is to focus on the shift we see in Latin America toward what is described as free market policies, and political democracy, and how this is coming about through a process of critical thinking about their future and their special role in the world economy. This is a laudable objective and one which hopefully will result in gaining deeper understanding for the highly developed countries of the realities of Latin America as well as their genuine needs for their long term viable development.

This initial article will diverge from the regular format of learned articles in this special issue, as it will summarize some of the main points of a book from which it is extracted. The purpose is to give a perspective which often goes unnoticed, that is, a vision of economic development from the perspective of the countries of South (Latin America) looking North (highly developed countries). This perspective takes into account as well as sociocultural/ecological considerations and exposes a number of long term concerns which the conventional economic approach to development of the North has not as yet been successful in incorporating. The purpose is to provide food for serious thought regarding our present concept of progress and development for Latin America in the long term and to consider how this approach is closely tied to the role of international business and government policy in the region.     

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.     

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.     

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.     

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.     

Antitrust policy in a hostile environment: institution building in venezuela's procompetencia

Theories of bureaucracy in Latin America generally stress institutional weakness, political volatility and the politicized nature of government agencies. One product of market liberalization in Venezuela was the creation of the anti-monopoly agency called “Procompetencia”, which managed to survive a change of government and a move toward interventionist, anti-market mechanisms hostile to its survival. The strategy and tactics of this agency are reviewed with the objective of detecting bureaucratic responses to threat and successful efforts to survive. Some lessons are derived for infusing more stability into weak institutions.     

Book reviews

Economic relations between China and Latin America have grown rapidly over the past decade. This paper documents the growth of trade, foreign direct investment (fdi) and other financial flows between China and Latin America and identifies the interests of China in the region as a source of raw materials, a market for exports of manufactured goods and an area of diplomatic competition with Taiwan. It points to the asymmetric nature of the relationship in terms of the relative importance of bilateral trade to each partner, the composition of trade flows, and the balance of fdi flows. It shows that these show many of the characteristics of centre–periphery relations. However, China is far from becoming a new hegemonic power in Latin America and the latter's relations with the USA and Europe continue to be more significant than those with China.     

This time it’s different: lithium extraction,cultural politics and development in Bolivia

As governments throughout Latin America have increased their dependence on resource extraction, the debate around extraction-based development has been reinvigorated. This article argues that, despite historical failures and recurrent conflicts associated with extraction-based development, the way in which development is experienced and conceptualised at the subnational level demonstrates why extraction continues to be perceived as a legitimate means for development. These findings show that, as resource extraction continues to play a critical role in the overall development transition of Latin America, the process must be understood and theorised in relation to the experiences and expectations of actors at multiple scales.     

Feminists and Technocrats in the Democratization of Latin America: A Prolegomenon

Women's movements made important contributions to ending the period of authoritarian rule in Latin America, but their participation in the reconstruction of democratic politics has been more limited than expected. This paper argues that the enormous influence exerted by technocratic elites in the democratization process in Latin America has represented an obstacle to the improvement of women's status in the region. Gender-biased assumptions and practices have been only partially addressed, in part because the policy-making process is under the control of economists, a professional group with a particularly unfriendly stand towards gendered analysis. It is suggested that reforms within economics may help in the task of making democracy more responsive to the demands of women.     

Agricultural self-sufficiency: The recent history of an idea

Summary and Conclusions It has been argued that traditional Third World reliance on commodity export production and trade as a means to accumulate savings for development is increasingly perceived as flawed. Post-World War II investment in light manufacturing by Western firms in the Periphery has also been characterized as an inadequate means of capital accumulation. Nationalist and socialist academics and political leaders in the Third World are voicing interest in food agriculture as a mechanism for economic growth; internal demand for food and other basic goods is considered a potentially more lucrative source of savings than international demand for raw materials and foreign investment have proven to be. Political trends in the Core area, exemplified in Left ideologies, and in church and voluntary organizations' strategies for giving, seem to reinforce Third World fostering of food self-sufficiency as a strategy for development. It is important to recall that intellectual trends, even if broadly based, do not necessarily represent or cause social change. The idea of Third World agricultural self-sufficiency is more pervasive than is its implementation. Nevertheless, current speculation about food self-reliance and its dynamic effect on economic growth in Latin America, Asia, and Africa, is new in development theory, and therefore worthy of note. Further study may reveal the depth of present interest in agricultural self-sufficiency and its likely impact on development planning.     

Promoting democracy in Latin America: foreign policy change and US democracy assistance, 1975–2010

Since the Cold War the USA has articulated and implemented explicit strategies of democracy promotion. One interesting target of such efforts is Latin America, in part because of the region’s geographic proximity to the USA and of the mixed record of US support for democracy there. This paper examines the impact of the end of the Cold War and the 9/11 episode on the nature, purposes, targets and consequences of US democracy assistance to Latin America. Examining democracy aid allocations, social and political factors and other variables, it traces changes in aid strategies, purposes and recipients generated by these paradigm shifts, and assesses the impact of such assistance on the politics of the region. It concludes with implications of these findings for US democracy promotion policies.