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Trade Liberalization and Political Instability in Developing Countries

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Programming for Peace

Part of the book series: Advances in Group Decision and Negotiation ((AGDN,volume 2))

Abstract

When in spring 2002 thousands of Argentineans protested against their government’s economic policy, their anger was directed against, amongst other issues, the economic liberalization of the 1990s. After decades of protectionism, the Latin-American state followed the recommendation of the IMF, as did its neighbors, and systematically opened its markets of goods and capital. Critics of globalization considered the Argentinean crisis as an affirmation of their skepticism towards the “Washington consensus”, namely the recipes of liberalization and deregulation. According to their interpretation, economic integration instigates socio-political conflicts because of the redistributive effects of liberalization. While capital owners and multinational firms profit from the renunciation of import substitution and other protectionist measures, the working population and the local industry are, in this perspective, the losers of the new policy.

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Author information

Authors and Affiliations

  1. University of Konstanz, Germany

    Margit Bussmann, Harald Scheuthle & Gerald Schneider

Authors
  1. Margit Bussmann
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  2. Harald Scheuthle
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  3. Gerald Schneider
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Editors and Affiliations

  1. Austrian Research Institute for Artificial Intelligence, Vienna Medical University, Vienna, Austria

    Robert Trappl

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Bussmann, M., Scheuthle, H., Schneider, G. (2006). Trade Liberalization and Political Instability in Developing Countries. In: Trappl, R. (eds) Programming for Peace. Advances in Group Decision and Negotiation, vol 2. Springer, Dordrecht. https://doi.org/10.1007/1-4020-4390-2_3

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