Abstract
After the shift in the economic accumulation pattern toward a more neoliberal agenda during the 1990s, the industrial policy space in countries belonging to the periphery has been extremely reduced. In the new globalized era, developed countries (particularly the United States) have placed at the center of the international negotiations the need to move discussions toward free trade for goods, services, and, especially, capital. With the increasing importance of both financial institutions and Global Value Chains organized by Transnational Corporations on the international sphere, the main target was to minimize the transaction costs involved in the internationalization of production. The main aim of this chapter is to discuss the possibilities for industrial development in peripheral countries, especially in Latin America, with a view to stressing the constraint imposed by the current system of rules that regulates international trade.
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Notes
- 1.
- 2.
Namely OECD countries.
- 3.
The explanation for this difference in elasticity levels is intuitive. Unlike imported consumption goods from the center, imported capital goods from the periphery are fundamental to carrying out the productive process in these economies; then, due to the pressure exerted by this necessity even when income falls the purchase of this kind of goods by the periphery does not tend to decrease as much.
- 4.
As documented in Nahón, Rodríguez Enríquez and Schorr (2006).
- 5.
For more details on this topic, see Chap. 9.
- 6.
In her own words: “A resistance mechanism may be defined as a policy that upholds the letter of the law but not necessarily its spirit. The letter, as written by a new World Trade Organization, supposedly abolished subsidies, freed trade, and deregulated competition. (…) It was within the relatively grey area of safeguards and selective subsidies that the neo-developmental state nested its new policy regime” (Amsden 2001, 268).
- 7.
According to World Bank data, average World tariffs in 2014 was above 4%, while in 1996 was 35%. In peripheral countries, this average practically doubles.
- 8.
Purchasing Power Parity.
- 9.
The flying geese strategy that generate the Asian miracles (see Akamatsu 1962).
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The author thanks Andrés Lazzarini and the participants of the Seminar “Desarrollo en América Latina: Discusiones críticas desde la periferia” organized by the editors in July 2017 for their comments and suggestions.
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Olivera, M. (2019). The Possibilities of Industrialization and Structural Change for the Periphery in the Context of Globalization. In: Fernández, V., Brondino, G. (eds) Development in Latin America. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-92183-9_7
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