Kinghorn, J. Issues in Latin American Economic Development

Janice Rye Kinghorn, Antioch College SGSP 284 Block III Summer 1999

Issues in Latin American Economic Development

Description

This course is an introduction into the economic development of Latin
America. Theory and history are combined in an attempt to understand the
various forces that have shaped economic development in Latin America.
We start by examining divergent theories of development and their
applications to the region. The historical roots of modern institutions
are explored. The course then turns to the modern political and economic
challenges confronting the region. Liberal economic reform holds out the
promise of economic growth and reduced inflation rates, but
stabilization and structural adjustment programs cause socio-economic
dislocations and engender popular discontent. The role of the state, the
market, and the informal sector in the development process will be
debated, as well as the prospects of economic reform and sustainable
development.

Objectives

1. To understand theories of economic development, and how they apply to
Latin America. 2. To understand how the history of the region shapes the
problems it faces today. 3. To gain an introduction of current problems
facing Latin American economies. 4. To gain incite into the role of the
state, the market, and the informal sector in promoting sustainable
development.

Course Requirements

The class will focus on discussion of topics presented in the required
texts, and supplemented by additional readings. Students are responsible
for coming to class prepared to discuss the required readings. Lectures
will occur only when background theoretical material is necessary for an
understanding of the issues. Each student will adopt a country, and be
responsible for sharing with the class the application of general themes
to that particular country experience. This will be formalized in a
series of student presentations corresponding to the sections of the
course. Prior to each meeting, a selected student will be assigned the
task of preparing "talking points" on the readings. These talking points
should form the basis for both descriptive and critical points about the
readings.

Students will write a final paper bringing together the themes discussed
during the class with reference to their adopted country.

Required Text:

Cardoso, Eliana and Ann Helwege (1992) Latin America's Economy.
Diversity, Trends and Conflict, MIT Press.

Burgos-Debray, Elisabeth, ed. (1983). I, Rigoberta Menchu, An Indian
Woman in Guatemala, Verso.

COURSE OUTLINE

Introduction Latin America: An Overview Cardoso, Chapter 1, The Economic
Landscape Bulmer-Thomas, :Latin American Economic Development: A General
Overview", in Costin, Economic Reform in Latin America Haley,
"Electronic Research on Economic Reform in Latin America" in Costin,
Economic Reform in Latin America

Measuring Economic development Meier, "What is Economic Development" in
Leading Issues in Economic Development Gillis, "Development and Human
Welfare" Chapter 4

Theories of Development Cardosa, Chapter 3, Theories, Ideas, and
Opinions *Harber, Stephen, "A History of Latin American Historiography"
in How Latin America Fell Behind

Historical Roots Cardoso, Chapter 2, Historical Roots Engerman and
Sokoloff, "Factor Endowments, Institutions, and Differential Paths of
Growth Among New World Economies", in How Latin America Fell Behind

Macroeconomic development

Trade Cardoso, Chapter 4, From Import Substitution to Trade
Liberalization *Michael Reid, "Remapping South America: Mercosur", The
Economist, October 12, 1996

Debt Cardoso, Chapter 5, Debt *Jorg G. Castande, "Mexico's Circle of
Misery", Foreign Affairs, July/Aug 1996 *Bradford De Long, et al, "The
Case for Mexico's Rescue", Foreign Affairs, May/June 1996

Inflation Cardoso, chapter 6, Inflation *Kiguel and Nogues, "Restoring
Growth and Price Stability in Argentina: Do Policies Make Miracles?" in
Costin, Economic Reform in Latin America *Ramalbo, "'Plano Real': The
End of Hyperinflation in Brazil", in Costin, Economic Reform in Latin
America



Political Economy

Stabilization Chapter 7, Stabilization *"Back on the Pitch", The
Economist, December 1997                *Reid, Michael, "The Devaluing
of a Presidency", The Economist,

Populism Cardoso, Chapter 8 *Jorg I. Dominquez, "Latin America's Crisis
of Representation", Foreign Affairs, 1997 *Sebastian Edwards, Latin
America's Underperformance, Foreign Affairs, March/April 1997

Democracy *Larrain B. and Raul Laban M., "From the Military to
Democracy: Two Decades of Chilean Economic Policies" in Costin, Economic
Reform in Latin America

Microeconomic Development

Poverty and the Informal Sector Cardoso, Chapter 9 De Soto, The Other
Path, Foreword

Agrarian Reform Cardoso, Chapter 19 I, Rigoberta Menchu *"The Meek Want
the Earth Now", The Bulletin of the Atomic Scientist, Nov/Dec 1996