• Trinity College, Department of Economics

• Latin American and Caribbean Economic  Development

• M. D. Ramirez , Economics 231, Fall 2011

General Comments:

This course is designed to provide students with a comprehensive survey of the major theories and leading issues in the study of economic development in Latin America and the Caribbean. Particular emphasis is placed on key economic and historical links between the countries of the region and the developed nations in influencing the nature and direction of their unbalanced growth and delayed development. In so doing, the student acquires 1) a deeper understanding of the socioeconomic challenges and opportunities facing the countries of Latin America; and 2), a greater appreciation of the importance of the interdisciplinary approach in development studies.

The course is divided into five sections described in the general outline below. The first section gives an overall description of quantitative and institutional aspects of underdevelopment in Latin America, with particular emphasis on the problem of inequality and poverty. This is followed in Section 2 by an analysis of past general theories of growth and development, as well as contemporary theories of economic development in the context of Latin America and the Caribbean. Particular attention is given to the economic and social impact of the pursuit of an import-substitution industrialization strategy during the fifties, sixties, and seventies by countries such as Argentina, Brazil, Chile, and Mexico; it also surveys and criticizes Neo-Marxian and dependency theories of economic development. Section 3 examines the relation of trade to development in the region, with particular emphasis on preferential trading arrangements such as the NAFTA and the challenge and opportunities posed to the region by the economic rise of China. Section 4 surveys the vast literature pertaining to rural underdevelopment and poverty in Latin America. Finally, Section 5 introduces the student to the ongoing debate about the causes and consequences of the 1980s debt crisis, and the mixed results of IMF-sponsored stabilization and structural reform programs adopted in several Latin American and Caribbean countries over the past two and one half decades.

During the semester a mid-term and a final examination will be given on dates reported below. Students will be required to write short papers for class discussion based on the articles (in PDF format) available in Moodle (at most 4 papers). Finally, weekly problem sets will be assigned that test your ability to use economic concepts in understanding the challenges and opportunities facing Latin America. 

The schedule of exams and the assignment of grades is given below:

• Assignments              Weights (%)                     Dates

• Mid-term Exam              25                           Oct. 25 (T)

• Final Exam                     35                            Dec. 20 (T at 9:00 a.m.)    

• Problem sets                  20                            (On a weekly basis.)

• Written Exercises           20                             (TBA)

The remaining 5 percent of your grade will be determined on the basis of class-participation and attendance.

My office is located in Rm. 312, Williams Memorial Bldg. and I will be available for consultation on Tuesday from 10:00 -11:00 and W: 1:45-2:45, and by appt. I can be reached at the following phone: x2487. I urge you not to leave messages on my message center unless it is extremely urgent. An emergency constitutes events such as missing class, major exams, or not turning in assignments.  My e-mail address is: miguel.ramirez@trincoll.edu and I will only answer substantive questions that pertain to material discussed in class. One final note: please TURN OFF your cell phones and laptops before entering class and refrain from getting up in class to go to the restroom. Thanks.  

• P. Franko's The Puzzle of Latin American Economic Development  3rd. ed. (New York: Bowman & Littlefield Publishers, Inc.,  2007) and a set of Readings Materials (available as PDF files) specifically prepared for use in this course and available in Moodle.   

• The reading list contains only a first approximation of the type of readings that would best serve the course. Not everything is meant to be read and I reserve the right to change some of the readings if I come across more timely and relevant material.

I. Quantitative and Institutional Aspects of Underdevelopment (approx. 1 1/2 weeks).

• Franko: Chps. 1 and 11.

• Reading Materials (RM): Ramos, Skidmore, and Quintin; and Amann and Baer.

Baer, Werner and Joseph L. Love, eds. Liberalization and Its Consequences. Northampton, MA: Edward Elgar Publishers, 2000, chp. 1. 

Bulmer-Thomas, Victor, The Economic History of Latin America since Independence (New York: Cambridge University Press, 1994).

Cypher, James M. and James L. Dietz, The Process of Economic Development (New York: Routledge, 2005), chs. 1 and 2.

Easterly, William, The Elusive Quest for Growth (Cambridge, Mass.: The MIT Press, 2005), Chps. 1 and 13.

Foders, Federico amd M. Feldsieper, The Transformation of Latin America: Economic Development in the Early 1990s. Northampton: Edward Elgar Publishers, 2000, chs. 1 and 2.

Foders, Federico, "Latin America: The Long and Winding Road to Growth," World Economics, Vol. 2, No.2, April-June 2001, pp. 143-161.

Green, Duncan, Silent Revolution . New York: Monthly Review Press, 2005, chp. 1.

Hofman, Andre A., The Economic Development of Latin America in the Twentieth Century (Northhampton, MA: Edward Elgar Publishers, 2000), chps. 1-3.

Wiesner, Eduardo, The Political Economy of Macroeconomic Reform in Latin America (Northhampton, MA: Edward Elgar Publishers, 2008), chp. 2.

II. Theories of Growth, Development, and Unequal Exchange in Latin America (approx. 3 weeks).

• Franko: Chps. 2 and 3.

• RM:  Victor-Bulmer Thomas, Dominguez, Kay, and Meller; Burns, Frank, and Thorp; and Amsden .

Suggested Readings:

Amsden, Alice H., "Import Substitution in High-Tech Industries: Prebisch Lives in Asia!" Cepal Review, Vol. 82, April 2004, pp. 75-89.

Baer, Werner, "Import-Substitution Industrialization in Latin America: Experiences and Interpretations," Latin American Research Review, Spring 1972.

Baran, Paul, The Political Economy of Growth (New York: Monthly Review Press, 1957), chs. 2, 5, 6, 7, and 8.

Bulmer-Thomas, Victor, The New Economic Model in Latin America and Its Impact on Income Distribution and Poverty (New York: St. Martin's  Press, 1996), chs.1 and 2.

Cardoso, Fernando H. Dependency and Development in Latin America (Berkeley: University of California Press, 1979), chs. 2, 3, and 4.

Cypher, James M. and James L. Dietz, The Process of Economic Development (New York: Routledge, 2005), chs.3-6.

Easterly, William, The Elusive Quest for Growth (Cambridge, Mass.: The MIT Press, 2005), Chps. 2-4.

Fukuyama, Francis, Falling Behind (New York: Oxford University Press, 2008), Chps 3 and 4.

Gerschenkron, Alexander, Economic Backwardness in Historical Perspective (Cambridge Mass.: Harvard University Press, 1966).

Hofman, Andre A., The Economic Development of Latin America in the Twentieth Century (Northampton, MA: Edward Elgar Publishers, 2000), chs. 1-3.

Kay, Cristobal, Latin American Theories of Development and Underdevelopment (New York: Routledge, 1989), chs. 1, 2 and 6.

Marx, Karl, Capital I (New York: International Publishers, 1977), chs. 26-32.

Prebisch, Raul, The Economic Development of Latin America and Its Problems (New York: United Nations, 1950).

Ranis, Gustav, "The Evolution of Development Thinking: Theory and Policy," Center Discussion Paper No. 886. Economic Growth Center, Yale University, 2004,

pp. 1-38.

Wiesner, Eduardo, The Political Economy of Macroeconomic Reform in Latin America (Northhampton, MA: Edward Elgar Publishers, 2008), chp. 5.

III. Trade, Finance, and Development (approx. 2 weeks).

• Franko: Chp. 8.

• RM: Lewis,  Escaith,  Lustig, Ramirez and Wise; Blasquez-Lidoy and Hogenboom (Chp. 7 in Paus).

Berg, Janine, Miracle for Whom? Chilean Workers Under Free Trade (New York: Routledge, 2006), chps. 2 and 3.

Easterly, William, The Elusive Quest for Growth (Cambridge, Mass.: The MIT Press, 2002), Chps. 9-10.

Escaith, Hubert, "Regional Integration and Macroeconomic Coordination in Latin America," Cepal Review, Vol. 82, April 2004, pp. 55-73.

Fernando Henrique Cardoso, Dependency and Development in Latin America (Los Angeles, CA: University of California Press, 1979), chs. 2, 3, and 6.

Fraga, Arminio, "Latin America since the 1990s: Rising from the Sickbed?" Journal of Economic Perspectives, Vol. 18, No.2, Spring 2004, 89-106.

Leiva, Fernando I., Latin American Neostructuralism (Minneapolis: University of Minnesota, 2008), chp. 9.

Love, Joseph L., "The Origins of Dependency Analysis," Journal of Latin American Studies, Vol. 22, 1996, pp. 143-168.

Love, Joseph L., and W. Baer, Brazil Under Lula (New York: Palgrave Macmillan, 2009), chps. 6 and 9

Myrdal, Gunnar, Economic Theory and Underdeveloped Regions. London: Duckworth, 1957.

Paus, Eva., Global Giant: Is China Changing the Rules of the Game? (Palgrave: 2009), chp. 7.

Rodrik, Dani, The Globalization Paradox (New York: W.W. Norton & Co., 2011), Chps. 7-8.

Ricardo, David, The Principles of Political Economy and Taxation, third edition (1817), chp. 6.

IV. Agricultural Development and Poverty (approx. 2 weeks).

• Franko: Chps. 10 and 12.

• RM: Kay, Wiggins and Barkin articles.

Kay, Cristobal, "Rural Latin America: Exclusionary and Uneven Agricultural Development," in Capital, Power, and Inequality in Latin America, edited by Sandor Halebsky and Richard L. Harris (Oxford: Westview Press, 1995).

Austin, James E. and Gustavo Esteva, Food Policy in Mexico (New York: Cornell University Press, 1987).

Barkin, David, Distorted Development (Oxford: Westview Press, 1990), chps. 1-3.

Barkin, David., "The Reconstruction of a Modern Mexican Peasantry," The Journal of Peasant Studies, Vol. 30, No.1, October 2002, pp. 73-90.

Franko, Patrice M., The Puzzle of Latin American Economic Development (New York: Rowman & Littlefield Publishers, 2007), chp. 10. 

Hamilton, Sarah, "Neoliberalism, Gender, and Property Rights in Rural Mexico," Latin American Research Review, Vol. 37, No. 1, 2002, pp. 119-143.

Lopez, Ramon and A. Valdes, Rural Poverty in Latin America. New York: St. Martin's Press, 2000, chps. 1, 3 and 4.

V. Debt, Adjustment, and Structural Reform in Latin America (approx. 3 weeks).

• Franko: Chps. 4 and 5.

• RM:  Pastor and Fraga ; Weisbrot;  Agacino; Cowan and De Gregorio; Moguillansky; and Orrenius.

Suggested Readings:

Bulmer-Thomas, Victor. The New Economic Model In Latin America and its Impact on Income Distribution and Poverty. (New York: St. Martin's Press, 1996.), Chp. 12.

Corbo, Vitorio and L. Hernandez, "Successes and Failures in Real Convergence: The Case of Chile," in Living Standards and The Wealth of Nations, Stanley Fischer, ed. Cambridge, Massachusetts: The MIT Press, 2006, pp. 115-146.

Diaz-Alejandro, Carlos, "Good-bye Financial Repression, Hello Financial Crash," Journal of Development Economics, Vol. 19, No. 1-2, 1985, pp. 1-24.

Edwards, Sebastian, Crisis and Reform in Latin America: From Despair to Hope (New York: Oxford Economic Press, 1995). 

Easterly, William, The Elusive Quest for Growth (Cambridge, Mass.: The MIT Press, 2005), Chps. 6 and 7.

Fraga, Arminio, "Latin America since the 1990s: Rising from the Sickbed?" Journal of Economic Perspectives, Vol. 18, No.2, Spring 2004, 89-106.

Fukuyama, Francis, Falling Behind (New York: Oxford University Press, 2008), Chps 7 and 8.

Green, Duncan, Silent Revolution . New York: Monthly Review Press, 2003, chps. 6, 7 and 8.

Killick, Tony et al., "What Can We Know About the Effects of IMF Programmes?" World Economy, Vol. 20, September 1992, pp. 575-597.

Love, Joseph L., and W. Baer, Brazil Under Lula (New York: Palgrave Macmillan, 2009), chp. 4.

Moguillansky, Graciela, "Foreign Banks in Latin America: A Paradoxical Result," Cepal Review, Vol. 82, April 2004, pp. 19-35.

Ocampo, Jose A., Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability. Palo Alto, CA: Stanford University Press, 2005,

Paus, Eva A., "Productivity Growth in Latin America: The Limits of Neoliberal Reform," World Development, Vol. 32, No. 3, March 2004, pp. 427-446.

Ramirez, Miguel D., "Economic and Institutional Determinants of Foreign Direct Investment in Chile: A Time-Series Analysis, 1960-2001," Contemporary Economic Policy, Vol. 24, No.3, July 2006, pp.459-471.

Ramirez, Miguel D.,  "What Explains Latin America's Poor Investment Performance During the 1980-2001 Period?: A Panel Unit Root Analysis," International Review of Applied Economics, Vol. 22, No. 1, January 2008, pp. 1-15.