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It appeared to defeat its own objectives when it produced a growing dependence on imports in other sectors. The development model of which it was such a central part, failed to produce more pluralistic power structures, and to promote a genuine democratization and a redistribution of income and wealth, as originally was thought it would. Populism appeared to be a political formula that depended on continuing economic growth. With the decline of Latin America's traditional exports on the world market, its political basis disintegrated.
In the course of the growth process, the differentiation of the economic structure it induced, and the expansion of the state apparatus it entailed, this alliance came to include a new social segment of managers, bureaucrats, professionals and technocrats who developed their own relationship with the national and international business communities. Several countries suffered military coups. Several of these regimes consolidated extensive state control over those institutions considered economically and politically strategic.
The objective was to continue the process of capitalist industrialization under control of a technocracy that would operate with a greater autonomy toward civil society and would put an end to the growing politicisation of economic decision making in the previous period O'Donnell, As part of the 'package', economic adjustments and measures of inflation control were implemented that, in practice, affected strongly the income situation of the working masses. However, the military's efforts to radically change the relations between the state and civil society were unsuccessful and the military control of the state apparatus was undone in subsequent years.
This time, however, the changes have taken place in response to a totally different economic and political conjuncture.
In the s, many countries in Latin America experienced moments of substantial economic growth. However, this growth was to an important extent artificial and had become dependent upon external financing. The foreign debt grew spectacularly and its servicing consumed the greater part of export income. In most Latin American countries the state had expanded greatly its size and scope of operations. Deficits in the public budget were increasingly financed through inflationary means, a policy that eventually derailed toward hyperinflation.
Confronted with the extent of the crisis and under strong pressure of the international financial sector, the Latin America governments had to take drastic action. First, inflation had to be contained and equilibrium had to be restored to the economy. Second, the economy had to be restructured and the conditions had to be established for sustained economic growth on the basis of international competitiveness. In all of Latin America, liberalization became the issue. The economy had to be governed by the market.
Trade barriers had to be eliminated, protectionist practices scrapped, conditions for foreign investment liberalized. In each country, decision making regarding these policies of structural adjustment involved only a limited number of actors: These actors worked out an agreement on the general direction the structural adjustment program had to take and the international financing that would be required to implement it Naim, ; Hartlyn and Morley, Labour organizations were notoriously absent during these deliberations.
These elements indicate a general direction of the reform process. Lewis, David, , Bridging the Gap? Hardill, Irene and Mills, Sarah After 'the lost decade' of the s, the real growth rate of Latin American countries turned positive again in the beginning of the s. Keane, John ed , , Civil Society and the State: Nelson, Jane, , Business as Partners in Development:
Few governments have openly refused to accept the reforms suggested by the international financial establishment. The new policies succeeded in bringing inflation under control and created a modest economic growth. At the same time, however, the income distribution in most countries has grown more unequal. Their contribution to structural solutions to the problem of urban and rural poverty has been small.
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In the course of the s, the buying power of working class income had deteriorated to levels that were registered almost two decades before. The campesino sector was considered lacking growth potentialities and was abandoned by official politics. These elements indicate a general direction of the reform process. The specific arrangements between state and market and the impact of adjustment policies on social classes and other interest groups often differ considerably among countries.
Structural adjustment has produced its own winners and losers.
The recent tax reforms initiated by many countries have not been able to correct this trend. After 'the lost decade' of the s, the real growth rate of Latin American countries turned positive again in the beginning of the s. This trend was interrupted in as a result of the financial crisis affecting Mexico, and the recession in Argentina, but gradually stabilized in the following years. In the present decade, growth has remained unstable and continued to depend heavily on primary exports.
In several cases, significant growth rates has been registered, although their effects on more equitable distributions of income have been minimal. The policies directed toward this objective will need broad support in society and should contribute toward political stability.
Further, the existing supporting institutional structure will have to be redesigned. Its presence has discouraged the development of more stable economic activities and has encouraged speculation. Equally important, however, are domestic factors, such as: Such consensus is dependent upon a broadening and deepening of the process of democratization which, at the same time is a precondition for a successful consolidation of reform in many other areas.
The recent downturn resulting from the international credit crisis, after half a decade of strong economic growth, has demonstrated again the vulnerability of such a reform agenda Economist, The globalization of the Latin American economies has proceeded at a rapid pace. In the s, the neoliberal paradigm provided the ground rules that were applied in order to extricate the Latin American economies from the severe crisis caused by hyperinflation and external debt.
It also dictated the policies that ended the inward orientation of the paradigm that had directed Latin America's development in previous decades.
However, the opening up of the Latin American economies has left them often even more vulnerable to the impact of international economic cycles than before and has made clear their many and manifold dependencies in the international economy Gwynne, However, they have not realized growth with equity. Most Latin American countries have been under great pressure to restructure labour markets, to keep wage costs at low levels and to make employment practices more flexible in order to create greater competitiveness internationally.
The power of the trade unions has declined in almost all countries making labour more vulnerable and insecure. Since the emergence of labour as a political actor in Latin America in the s, corporatism has served as a system organizing societal interests along functional lines. The state regulated labour markets through complex legal codes and institutions. Union autonomy was exchanged for favourable settlements regarding wages and working conditions, and the prerogative to distribute the social welfare benefits granted by the state.
This system is not working to the extent it used to do. Wages and working conditions area more and more settled through collective bargaining, either at the firm level or with the employers associations without state intervention. This way, the labour unions have gained independence and more room to run their own affairs, but they have lost in political representation within the arenas of the state.
This has created a void that has been filled increasingly by voluntary associations, political movements, NGO's and the like. To include a comma in your tag, surround the tag with double quotes.
Skip to content Skip to search. Home This edition , English, Conference Proceedings edition: Between states and markets: Princeton University Press, c Check copyright status Cite this Title Between states and markets: Other Creators Anheier, Helmut K. Physical Description p. Subjects Associations, institutions, etc. Associations, institutions, etc -- Congresses. Nonprofit organizations -- Congresses. Social ethics -- Congresses.
Voluntary workers Nongovernment welfare sector Organisations Case studies Overseas item Voluntary organisations Contents Includes bibliographies and index. Notes Includes bibliographical references and index.