Description
Book SynopsisSince the late 1980s, almost all Latin American countries have undergone a series of far-reaching economic reforms, particularly in the areas of financial and capital account liberalization and trade. This book provides a comparative and analytical framework for assessing the impact of these reforms upon 16 countries in Latin America and the Caribbean, including: Argentina, Brazil, Chile, Colombia, Ecuador, El Salvador, Mexico, and Peru.
The contributors analyse the complex interaction between macro policies, trade and financial liberalization. They illustrate that capital account liberalization in many cases has counteracted objectives of trade liberalization by provoking real exchange-rate appreciation and a profit squeeze in tradable goods sectors.
The book concludes that structural shifts resulting from the reform process - such as greater demand for skilled labour and labour-saving investments in modern economic sectors - are major underlying causes of inequality and poverty. The authors ascertain that although these repercussions are strongly associated with the process of trade liberalization, in several instances the positive impact of macroeconomic stabilization and expansion of aggregate demand on employment and real incomes have counteracted these negative outcomes.
Economic Liberalization, Distribution and Poverty will be of interest to scholars of economic development, policymakers in countries undergoing major economic reforms (Latin America, Africa, Asia and Eastern Europe), economic analysts at multilateral agencies (UN, IMF, World Bank, regional development banks, BIS), and international investment agencies including major banks. The book will also be important to aid agencies and those interested in a better understanding of the impact of globalization on the well-being of people across the globe.
Trade Review'. . . this volume provides an excellent, carefully argued study that grounds its reasoning in both detailed country-specific narratives as well as rigorous and innovative empirical work. Its array of findings should be of great interest to all those concerned with the welfare outcomes of liberalizing policy reform.'
Table of ContentsContents: Preface 1 Balance of payments liberalization in Latin America: effects on growth, distribution and poverty Lance Taylor and Rob Vos 2 Labour market adjustment, poverty and inequality during liberalization Enrique Ganuza, Ricardo Paes de Barros and Rob Vos 3 Argentina: macroeconomic behaviour, employment and income distribution in the 1990s Roberto Frenkel and Martín González Rozada 4 Brazil: economic opening and income distribution Ricardo Paes de Barros and Carlos Henrique Corseuil 5 Chile: trade liberalization, employment and inequality José de Gregorio, Dante Contreras, David Bravo, Tomas Rau and Sergio Urzua 6 Colombia: structural change, labour market adjustment and income distribution in the 1990s José Antonio Ocampo, Fabio Sánchez and Camilo Ernesto Tovar 7 Ecuador: economic liberalization, adjustment and poverty, 1988–99 Rob Vos 8 El Salvador: balance-of-payments liberalization, remittances, employment and poverty Alexander Segovia and Jeannette Larde 9 Mexico: trade liberalization, growth, inequality and poverty Jaime Ros and César Bouillon 10 Peru: stabilization, liberalization and inequality Juan José Díaz, Jaime Saavedra and Máximo Torero Index
