The Global and Local Dynamics of Latin American Development

Abstract

Until 1930 and for many countries well into, and beyond, the 1940s Latin American economies and societies were generally highly dependent, subject to conditions generated by an international division of labor in which they functioned as sources of raw materials and commodities for the manufacturing plants and consumer households of the industrial economies in the Northern hemisphere. Within this system (‘the old imperialism’) foreign capital in the form of direct investment and subscription to bond issues was the main source of external financing which was directed at increasing the region’s productive capacity for exports to the world market (as well as its capacity to import goods manufactured in the North).