• Trinity College, Department of Economics

• Latin American and Caribbean Economic  Development

• M. D. Ramirez , Economics 231, Fall 2008

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 a brief description of quantitative and institutional aspects of underdevelopment in Latin America and other areas of the developing world. This is followed in Section 2 by an analysis of past general theories of growth and development, as well as contemporary theories of economic backwardness in the context of Latin America and the Caribbean. In addition, this section examines critically 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 assesses the economic costs and benefits of the market-based and outward-oriented policies being implemented by many governments of the region. Section 3 surveys the vast literature pertaining to population growth and rural development in Latin America. There follows in Section 4 an examination of the relation of trade to development in the region and a survey and criticism of Neo-Marxian and dependency theories as embodied in the works of Andre G. Frank, Anibal Pinto, Osvaldo Sunkel, Fernando Cardoso, and Raul Prebisch. 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 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 included in the reading packet (at most five 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. 21 (T)

• Final Exam                     35                            Dec. 16 (T at 9:00 a.m.)    

• Problem sets                  20                            (On a weekly basis.)

• Written Exercises           20                             (Every other week)

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 Monday from 9: 45-11:00 and T between 12:50-1:45, 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 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 (New York: Bowman & Littlefield Publishers, Inc.,  2007) and a set of Readings Materials specifically prepared for use in this course.   

• The reading list contains only a first approximation of the type of readings that would best serve to accompany the course. Not everything is meant to be read and I will regularly point to chapters or articles which might be useful to members of the class.

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 Meier and Rauch.

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, 2003, chp. 1.

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

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

• Franko: Chps. 2 and 3.

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

Suggested Readings:

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., State and Capital in Mexico (Oxford: Westview Press, 1990), chps. 1-3.

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.

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.

Reynolds, Clark, The Mexican Economy (New Haven: Yale University Press, 1970).

Stiglitz, Joseph E., "Whither Reform? Towards a New Agenda for Latin America,"   CEPAL Review, Vol. 80, August 2003, pp. 7-37.

III. Trade, Development, and Unequal Exchange (approx. 2 weeks).

• Franko: Chp. 8.

• RM: Lewis (handed out in class), Moreno-Brid, and Ramirez articles.

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

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

Felix, David, "Is the Drive Toward Free-Market Globalization Stalling?" Latin American Research Review, Vol. 33, No. 3, 1998, pp. 191-216.

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

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

Munoz, Heraldo, From Dependency to Development (Boulder, Co.: Westview Press, 1981), chs. 4, 5, 13, and 14.

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

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

IV. Agricultural Development and Population Growth (approx. 2 weeks).

• Franko: Chps. 10 and 12.

• RM: Kay and Wiggins articles.

Alain de Janvry, The Agrarian Question and Reformism in Latin America (Baltimore: The John Hopkins University Press, 1983), chs. 2 and 6.

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.

Franko, Patrice M., The Puzzle of Latin American Economic Development (New York: Rowman & Littlefield Publishers, 2003), 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(handed out in class) and Fraga articles; Keen and Haynes article; Hojman, Agacino, and Cowan and De Gregorio articles;  Freeman and Blasquez-Lidoy articles; and Rios Morales and Teichman articles.

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.

Castaneda, Jorge G., Utopia Unarmed New York: Vintage Books, 1993, Chps. 8 and 13.

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.

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.

Lustig, Nora, ed. Coping With Austerity: Poverty and Inequality in Latin America (Washington, D.C.: The Brookings Institution, 1995, Chps. 2, 8 and 9.

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.