ses06_dev

ses06_dev - 17.55, Introduction to Latin American Studies,...

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Unformatted text preview: 17.55, Introduction to Latin American Studies, Fall 2006 Prof. Chappell Lawson Sessions 6: Development and Underdevelopment in Latin America Stages of development (Duncan Green) Colonial (What are land tenure patterns during this period?) o Specie, indigo, sugar o Spain and Portugal are main markets o England is indirectly the main partner 1810-1870: Chaos o bauxite, metals (e.g., copper), fertilizers (nitrates) o England main market 1870-1929: Primary product-led growth o coffee, copper, bananas, tin, beef, leather o railroads o England still main market o In 1920s, U.S. becoming main market o Foreign investment increasing o Trade increasing 1930-82: ISI o Depression, autarkic development, forced ISI initially o Steel in more developed countries (Mexico, Brazil, Argentina) o multinationals: steel, autos, chemicals, oil, petrochemicals, etc. o U.S. main market for exports o In post-war era, ISI is deliberate policy o Debt crisis at the end 1982-present: Neoliberal Era o Debt, austerity and adjustment o Lost decade o Not much development going on, most countries just now catching up Crop-growing patterns Latifundium Haciendas, plantations, and small farms Factory farms Focus of economic activity in cash crops, minerals until second half of 20 th century Why might economic reliance on primary commodities be bad? Substitution o Aluminum for tin o Synthetic dies for indigo o Manufactured for extracted hormones Terms of trade shift against you o Explain argument from ISI school Exhaustion of resource base o Sugar cane land Use of the materials should be cited as follows: Chappell Lawson, MIT OpenCourseWare (http://ocw.mit.edu/index.html) course materials for 17.55J/21A.430J/21F.084J (Introduction to Latin American Studies, Fall 2006), Massachusetts Institute of Technology, downloaded on [Insert Date]. o Minerals Changing demand o Brazilian coffee replaced by higher end varietals Development of cheaper production methods Price fluctuations Are these potential problems unique to primary products? Counter-evidence Substitution and cheaper production methods: all goods face this problem o And can form cartels Terms of trade dont always shift o Oil Exhaustion of resource base only applies to non-renewable commodities o And if they are exhausted, price may increase Changing demand could help o E.g., all-natural products o Can move into high end Price fluctuations o Can develop policies to manage this (hedging, commodities futures, government purchasing programs, etc.) 17.55, Introduction to Latin American Studies, Fall 2006 Sessions 6 Prof. Chappell Lawson Page 2 of 9 Use of the materials should be cited as follows: Chappell Lawson, MIT OpenCourseWare (http://ocw.mit.edu/index.html) course materials for 17.55J/21A.430J/21F.084J (Introduction to Latin American Studies, Fall 2006), Massachusetts Institute of Technology, downloaded on [Insert Date]. Theories of Development Why is Latin America underdeveloped? Why is Latin America underdeveloped?...
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This note was uploaded on 11/09/2011 for the course ARCH 4.401 taught by Professor Utemetabauer during the Fall '06 term at MIT.

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ses06_dev - 17.55, Introduction to Latin American Studies,...

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