LATIN AMERICAN CRISES: AN OVERVIEW
H J E Penna (*)
 

0. Preliminar facts

The southern part of America beginning in Mexico was called in the XIX Century "Latin America" (LA) (1) as a way to extend continental European territoriality in a so called fourth stage of expansion of the Roman Empire. Some sources attribute to Michel Chevalier (an adviser of Napoleon III in France) to coin the term LA when the 1853 expedition to Mexico. The term was used to assert European America vis-a-vis "America for the Americans" a brief statement of Monroe Doctrine (1823) (2, 3); to thwart the influence of United Kingdom and to legitimate "intervention" in LA "Catholic" nations (formerly including Canada´s Quebec province). In LA first nations and african populations are merged with European and Mediterranean nations in an obscure way. Iberoamerica and/or Hispanoamerica is used to refer to the nations that were formerly colonies of Portugal and/or Spain. The Organization of Ibero-American States (OEI)
(4) includes Spain and Portugal (often termed the «Mother Countries» of Latin America) among its member states. Unfortunately the term LA is today broadly accepted and cannot be ignored, having no acceptable replacement in the literature.
LA countries show an opposition between a primitive bucolic utopic image and a negative historic and present geopolitical status. In fact present figures showing poverty in LA are high and/or very high (5). In LA periodical (mostly economic) crises are producing an increasingly declining in the quality of educational and health services, and governance in LA countries is weak, poor or plainly absent (6).
Reports about LA crises show a permanent social disarrangement which exhibits anomalous characteristics: a positive utopic image (7) of an upcoming magnificent fate is obscured by a permanent historic negative development in the short/middle term: long term pharaonic policies never will be achieved.
Mismanagement (8), fight against Nature and exploitation are adopted as a rule o thumb by most government regimes ruling LA countries either «de iure» or «de facto».
In the last century scientific, corporate, and/ or political issues contributed to the transformation of economies via complex transnational mechanisms. Industrial planning, public investment in national industries, and import controls have been replaced by privatization policies, trade opening, tax cuts, and capital account liberalization reproduced far and wide using communication networks under International Monetary Fund (IMF) and/or some other international economic influences, for the capture of local markets. Emerging economics programs in peripheral countries were often set up in imitation of some Germany, England, and France exported designs in order to serve the state and the government apparatus of countries attached to those policies.
The design of curriculum in schools of economics in Latin-American nations imitated the French extensively, while German influence was prominent in the design of Japanese ones (9).


1. TYPOLOGY OF LATIN AMERICAN CRISES.

A non-exhaustive enumeration of LA crises arising from ex-post analyses includes dependent economy, emerging financial market, banking, balance sheet, balance of payments, twin, currency, self fulfilling, and corporative crises as the more frequent types. Ex-post analysts suggest that those crises could arise in different local contexts: pegged exchange rate, banking reform, state reform, privatization, divestment, dollarization, contagion, key market manipulation, persistent moral hazard, cronyism, herding, inconsistent domestic policies, persistent and/or large current account deficit, overvalued exchange rate, non-consistent PPP, unmoderated monetary expansion and financial globalization.
Governance, institutions, latent factors, omitted key circumstances and corruption could also be considered in order to clarify the subject and/or to make some ex-ante analyses.

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"hipertexts" follow

(*) Faculty of Economic Sciences/ Universidad de Buenos Aires

(1) X-URL: http://cgi.stanford.edu/group/wais/cgi-bin/index.php?p=2906  Date: Mon, 30 Jun 2008 19:42:20 -0300

(2) Nosotro R (2006) "Consequences of the Monroe Doctrine", In: X-URL:
http://www.hyperhistory.net/apwh/essays/comp/cw27monroedoctrine.htm  Date: Wed, 2 Jul 2008 18:30:35 -0300

(3) Cabot Lodge H (?) "Corollary to the Monroe Doctrine", In: X-URL: http://www.mtholyoke.edu/acad/intrel/lodge2.htm Date: Wed, 2 Jul 2008 18:29:09 -0300

(4) http://www.oei.es/

(5) X-URL:
http://qesdb.usaid.gov/cgi-bin/broker.exe?_program=lacprogs.pov_2.sas&_service=default&sscode=ECL188001 Date: Wed, 2 Jul 2008 19:02:16 -0300

(6) http://www.undp.org/oslocentre/docs06/Corruption%2520and%2520Governance%2520Measurement%2520Tools%2520in%2520Latin%2520American%2520Countries%2520-%2520June.pdf

(7) X-URL: http://www.themodernword.com/gabo/gabo_nobel.html  Date: Wed, 2 Jul 2008 19:13:36 -0300

(8) X-URL: http://www.santiagotimes.cl/santiagotimes/2008062314016/news/political-news/mismanagement-in-chile-s-labor-office.html  Date: Wed, 2 Jul 2008 19:20:17 -0300

(9) Fourcade M(2006) "The Construction of a Global Profession: The Transnationalization of Economics", AJS Volume 112 Number 1 (July 2006):
145-94 In: X-URL: http://sociology.berkeley.edu/faculty/fourcade-gourinchas/pdf/AJSII.pdf   Date: Mon, 30 Jun 2008 19:24:15 -0300
 

 

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