Some Aspects of the Development Crisis in Latin America

Abstract

Looking into the future in 1980, few observers would have predicted the magnitude of the development crisis experienced by Latin America since 1982. Now, however, the crisis is often presented as an inevitable consequence of Latin American policy mistakes and even cultural flaws. Some observers focus on foolish macroeconomic policies, others blame long-term policies, such as restrictions on inflowing direct foreign investment.

Editors’ note: this chapter was completed as a basis for discussion and comment shortly before the author’s death in July 1985. It is obviously shorter and less developed than the version he would have gone on to write. We have included it as he left it, with a few small corrections.

I am grateful to Mr Andres Bianchi, of the United Nations Economic Commission for Latin America, for much kind help.