Review by Choice Review
Edwards (UCLA) studies the advent and development of what he labels "the new Latin American consensus" concerning the region's economic problems. This consensus involved balanced fiscal budgets, opening of national economies to foreign competition, privatization of publicly owned sectors of the economy, and deregulation of financial and capital markets. The author first sketches the historical background of the use of the import substitution strategy, accompanied by strong protection of domestic markets and large-scale government intervention--and participation--in the economic development process. He then looks at the collapse of that strategy with the debt crisis, and the "lost decade" of the 1980s. He goes on to trace the conversion of Latin American economists and political leaders to the new consensus. In this connection, he emphasizes the contrast between the performance of Latin America and the countries of the "Asian miracle" in the last quarter of a century. Most of the book presents more detailed analyses of the four components of the new consensus and analysis of particular countries. Edwards recognizes that the polarization of property and income has been intensified in the process of "liberalizing" the Latin American economies. He therefore strongly insists on the need for governments to adopt programs to tackle poverty and expand social programs. One with a critical view might have certain objections to this book: the author places all the blame for the debt crisis on the Latin American governments, as a culmination of "populist" development, ignoring the importance of the creditor banks and governments in bringing it about. He also ignores the fact that the governments established most of the companies now being "privatized." Finally, the author's insistence on immediate institutional and social reforms is somewhat utopian. This book should interest Latin Americanists and students of economic development. Upper-division undergraduate and up. R. J. Alexander; Rutgers, The State University of New Jersey, New Brunswick
Copyright American Library Association, used with permission.
Review by Choice Review
