Conclusions: The Latin American Countries and the World Trading System — Addressing Institutional Barriers to Development

Abstract

As in the 1950s and 1980s, the birth of the 21st century shows Latin American countries struggling again to find a sustainable path to development. The sequence of events is already well known: decreasing returns from and even fatigue with the state-led, inward-looking model of industrialization — embracing, with almost blind faith in the ability of public sector bureaucrats to drive the process — paved the way in the 1980s for an across-the-board U-turn. Either out of pragmatism or conviction, but with similar determination, countries adopted development policy prescriptions coined by international organisms stressing the role of markets and deeper integration in the world economy. Privatization of public assets, de-regulation and greater exposure to international competition became the thrust of the standard policy package.