Economic Development in the New Left in Latin America

Background

Broadly it can be argued that one of the factors that explain the leftward shift in the region is the disappointing result of economic reforms associated with the so-called Washington Consensus to achieve high economic growth and persistent. At the beginning of XXI century, and after two decades of deep macroeconomic reforms, pushed into the trade and financial liberalization, deregulation, privatization and withdrawal of heavy state intervention in the allocation of resources, Latin America still does not enter a path of sustained high growth .

During the eighties decreased gross domestic product (GDP) real per capita in the nineties and grew at 1.5% in Latin America, four percentage points below the average for Asian developing countries. Consequently, between 1980 and 2000 the average income gap between Latin America and the Organization for Economic Cooperation and Development (OECD) is widened, and in general there was insufficient progress in reducing poverty, to the extent that Currently about 48% of Latin Americans living in poverty and 25% in extreme poverty. Latin America remains the region with the most unequal income distribution in the world (See Appendix). (Castaneda, pp. 144-155)

Given this poor economic performance generally adopted an attitude of Latin Americans increasingly critical of neoliberal policies and their implementations and credible reforms.

Criticism of the Washington Consensus multiplied. On the one hand, some considered it failed for not going far enough in his zeal for reform and proposed the "second generation reforms." On the opposite side, it was considered that the matter was not further reforms but, as proposed by Ricardo French Davis, chief economist at ECLAC, "reform the reforms", in response to institutional and historical reality of each economy and not the existence of "unique recipes" applicable at all times. Thus, from a conventional perspective and from the heterodox view, there were strong criticisms of the reform strategy followed by the region. (Guido, pp. 23-40)

Since it gained respectability campaigns of certain identified as leftist parties arguing for a new development agenda. Another element that affected the search for alternative strategies of development was the fact that after the attacks of September 11, 2001, Latin America seemed to fall quickly in the list of U.S. strategic priorities. Thus, conventional initiatives aimed at greater economic integration with the U.S. trade seemed to reduce its relevance; in addition to the tightening of U.S. immigration policy was not well received by Latin American countries. (Humberto, pp. 99-101)

Rhetoric and Reality

Economic factors, coupled with other socio-political type, affected and in a change of policy preferences in different countries of Latin America, which allowed individual identified as left-wing parties came to power through democratic elections, based on proposals for a change in economic policy.

The debate on the merits, defects and limitations of macroeconomic policies that governments have adopted these new izquierda3 is loaded with ideology, and rhetoric often prevails over reality. Indeed, while critics describe as populist doomed trials and economic destabilization; its advocates argue fervently that they are serious alternative economic programs, capable of counteracting the negative effects of previous ...