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La política económica neoclásica en América Latina: génesis y consecuencias de cuatro décadas perdidas en el desarrollo latinoamericano, 1980-2020
[Neoclassical Economic Policy in Latin America: Origins and Consequences of Four Lost Decades in Latin American Development, 1980-2020]

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  • Sánchez-Masi, Luis

Abstract

The aim of this article is to examine the effectiveness of economic policies based on neoclassical principles which have been implemented in most of Latin American countries since the eighties. Since then, the region has been losing relative importance in the world. The lag in the last “four lost decades” es quite general and compelling. Rather than eliminating the asymmetric relationship between developed and underdeveloped countries, the historical evidence suggests it is perpetuated by the neoclassical economic policy. In Latin America the neoclassical principles such as free market and international free trade have tended to preserve the same productive structure, thus promoting an erratic development, which depends on the demand and prices of primary products. Until now, no underdeveloped country has reached the first world by applying economic policies based on neoclassical principles. The Asian countries which performed that transition applied policies and strategies opposed to neoclassical principles. Raul Prebisch’s analyses about the inconsistency of neoclassical economic policy with Latin American reality are today as valid as seven decades ago. However, for the great majority of Latin American economists is simply inconceivable that basic principles of neoclassical theory may produce adverse effects on underdeveloped countries. Latin America must rethink the economic policy and strategy for attaining its development.

Suggested Citation

  • Sánchez-Masi, Luis, 2022. "La política económica neoclásica en América Latina: génesis y consecuencias de cuatro décadas perdidas en el desarrollo latinoamericano, 1980-2020 [Neoclassical Economic Policy in Latin America: Or," MPRA Paper 114296, University Library of Munich, Germany, revised 01 Jul 2022.
  • Handle: RePEc:pra:mprapa:114296
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    References listed on IDEAS

    as
    1. José Antonio Ocampo, 2014. "The Latin American Debt Crisis in Historical Perspective," International Economic Association Series, in: Joseph E. Stiglitz & Daniel Heymann (ed.), Life After Debt, chapter 2, pages 87-115, Palgrave Macmillan.
    2. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters, in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton University Press.
    3. Françoise Nicolas & Stephen Thomsen & Mi-Hyun Bang, 2013. "Lessons from Investment Policy Reform in Korea," OECD Working Papers on International Investment 2013/2, OECD Publishing.
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    More about this item

    Keywords

    Latin America; economic policy; neoclassical economics;
    All these keywords.

    JEL classification:

    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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