Modern political economy and Latin America : theory and policy

This is a reader that applies the newest debates in political economy to the analysis of Latin America in a way that is thematically and theoretically cohesive.. Modern Political Economy and Latin America consists of carefully selected, edited readings in Latin American political economy. The editors, Jeffry Frieden and Manuel Pastor, Jr., include an introductory chapter, and a concluding article as well as brief introductions to all sections. These inclusions will make explicit the theoretical underpinnings of each article, and will highlight their respective contributions to the ongoing debates in Latin America. } Modern Political Economy and Latin America consists of carefully selected, edited readings in Latin American political economy. The editors, Jeffry Frieden and Manuel Pastor, Jr., include an introductory chapter, and a concluding article as well as brief introductions to all sections. These inclusions will make explicit the theoretical underpinnings of each article, and will highlight their respective contributions to the ongoing debates in Latin America.Latin American economies are undergoing profound transformations. And, in the wake of a decade-long debt crisis, the statist models of the past are giving way to a reliance on the market even as authoritarian rule seems to have ebbed in favor of new or reborn democratic institutions. As a result, the policy framework guiding economic and political development is likely to be fundamentally different. The analysis of Latin America needs a strong dose of modern political economy--one that can bring the area studies field up to date with the recent developments on the theoretical end of the economics and political science professions. This book helps fill that need. } Part I. Theoretical perspectives. Section I. Contending perspectives on market failure and government failure. The origins of structuralism / H.W. Arndt -- Government failures in development / Anne 0. Krueger -- What Washington means by policy reform / John Williamson -- How can states foster markets? / Brian Levy -- Improving the state's institutional capability / Sanjay Pradhan. Section II. Explanations of government policy. The method of analysis : modern political economy / Jeffry A. Frieden -- Political models of macroeconomic policy and fiscal reforms / Alberto Mesina -- Understanding economic policy reform / Dani Rodrik -- What do we know about the political economy of economic policy reform? / Stephan Haggard and Steven B. Webb -- Uses and limitations of public choice / Barbara Geddes -- Part II. Applications. Section III. The political economy of growth since independence. Obstacles to economic growth in nineteenth-century Mexico / John H. Coatsworth -- Economic retardation in nineteenth-century Brazil / Nathaniel H. Leff -- Factor endowments, institutions, and differential paths of growth among new world economies / Stanley L. Engerman and Kenneth L. Sokoloff -- Latin American manufacturing and the First World War / Rory Miller -- Latin America in the 1930s / Carlos F. Diaz Alejandro. Section IV. Foreign trade and industrial policy. Import substitution industrialization / Eliana Cardoso and Ann Helwege -- Was Latin America too rich to prosper? / James F. Mahon -- The case for trade liberalization in developing countries / Rudiger Dornbusch -- The origins of Mexico's free trade policy / Manuel Pastor and Carol Wise -- The political economy of MERCOSUR / Luigi Manzetti. Section V. Foreign capital and the macroeconomy. Forms of external capital and economic development in Latin America : 1820-1997 / Werner Baer and Kent Hargis -- External debt and macroeconomic performance in Latin America and East Asia / Jeffrey D. Sachs -- Inflows of capital to developing countries in the 1990s / Guillermo A. Calvo, Leonardo Leiderman, and Carmen M. Reinhart -- Foreign direct investment in developing countries : progress and problems / Joel Bergsman and Xiaofang Shen -- The political economy of foreign direct investment in Latin America / Stephan Haggard. Section VI. Political institutions and economic policy. Challenging the conventional wisdom / Barbara Geddes -- Democratic institutions, economic policy, and development / Stephan Haggard -- A game theoretic model of reform in Latin American democracies / Barbara Geddes -- International capital flows and the politics of central bank independence / Sylvia Maxfield -- Preemptive strike : central bank reform in Chile's transition from authoritarian rule / Delia M. Boylan. Section VII. Social and environmental issues. Facing up to inequality in Latin America / Interamerican Development Bank -- Income distribution, capital accumulation, and growth / UNCTAD -- Public finance from a gender perspective / Ingrid Palmer -- The political economy of environmental policy reform in Latin America / David Kaimowitz -- National factor markets and the macroeconomic context for environmental destruction in the Brazilian Amazon / Steven C. Kyle and Aercio S. Cunha. This book covers the leading theoretical approaches to political economy in the Latin American context, providing powerful tools for analyzing the challenges and opportunities facing Latin America.