2.27-3.1lapol

2.27-3.1lapol - Latin American Politics 01/03/2007 14:29:00...

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Unformatted text preview: Latin American Politics 01/03/2007 14:29:00 ← February 27, 2007 ← ← Economic Policy ← ← Military Governments in 1960s-70s ← ← Initially attempts to stabilize and transform their economies ← Military government willing to impose significant costs on its population: ← ← Political goal – elimination of left / reaching its own goals ← ← Extent of support – in long run – how people evaluated the costs and benefits of what they were being offered? ← ← All the coups led to Decline in foreign investment ← Needed to remove inflation and restore investment / FDI ← ← Stabilization – caps on wages (reduced labor costs); drew in foreign investment ← Austerity measures – were of course unpopular and by demobilizing unions and political parties – elimination Any organized response ← ← Climate of fear that was imposed – precluded any public response – hope that in long term conditions would improve for all – resignation ← ← See sig. econ stabilization – inflation cut sharply / quickly ← FDI returned quickly also ← ← Inflation – in Chile – 500% ← Fell to 30% in 1978 ← Fell also in Brazil ← ← As stabilized – looked to long term changes ← Came to power to carry out politically difficult tasks – deepening ← ← Really only happened in Brazil; in all cases SOUGHT to transform. ← To PREVENT the reprise of econ stability – transformative projects ← ← The content of these programs varied – all showed a commitment to change using their economic interests. ← ← O’Donnell’s theory and critics – that is part of the midterm paper ← ← Today will look at our 4 cases: ← ← Brazil – focused on orthodox austerity measures ← After 1967 – moved to deepen ISI ← Moved to heavy industry – airplanes, autos, refrigerators ← ← Repression of labor – mdae BR attractive to bringin gin foreign capital ← ← Began to export its production to other Latin American countries: ← Allowed heavy industrial sectors to compete in the world market. ← ← First able to do this because of low wages: ← So in BR – large internal production – ← ← While govt heavily subsidized industry – let it grow and compete effectively ← When tariffs did fall, were able to export to other countries still ← ← At same time, massive expansion of role of state – 1972 – owned 60% steel production and 80% oil production. Country involved itself ← ← Loosened hold on monetary policy - > increased spending ← 1968 – 1974 -> GDP grew @ 10%; massive industrialization ← ← Known as the brazilian miracle – became industrialized country ← Has one of the highest rates of inequality in the world ← ← Development of HEAVY industry in BR: ← Led to sig change in social structure ← ← Geizel – 1974 president ← Aventura - Loosening the political control ← ← New trade unions start opening up: this new union movement – “new unionism” ← Was stronger / more organized / more radical than earlier trade union movement.Was stronger / more organized / more radical than earlier trade union movement....
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This note was uploaded on 04/08/2008 for the course POLS W4461 taught by Professor O'neal during the Spring '07 term at Columbia.

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2.27-3.1lapol - Latin American Politics 01/03/2007 14:29:00...

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