Another ‘Lost Decade’? Crisis and Structural Adjustment in Europe and Latin America

With the recent economic crisis, conditional lending and mandatory structural reforms arrived in the European Union. Greece and a number of other crisis countries were subjected to a rigorous process of economic adjustment in exchange for emergency credits from the troika (European Commission, European Central Bank, and International Monetary Fund). Conditionality and structural adjustment were first tested in Latin America. This article compares the European adjustment programmes with the structural reforms introduced in Latin American countries several decades earlier. By doing so, the article reveals strong parallels in spite of the fact that the initial adjustment programmes are rarely considered a success story and that the neoliberal ideology which inspired the related reforms is widely made responsible for the recent crisis. The fact that there are differences in the adjustment programmes is not the result of a re-think of the neoliberal agenda, but of the specific dynamics of European integration and of pragmatic responses to financial threats. However, the article also shows parallels in the outcome of structural adjustment. Some European crisis countries face a ‘lost decade’ quite similar to the one experienced in Latin America in the 1980s.     

Social protection in Chile: Reforms to improve equity

At the beginning of the 1980s, Chile pioneered the implementation in Latin America of structural reforms that fully or partially privatized pensions, health‐care and social assistance systems. Implemented without prior social dialogue, these reforms – which subsequently influenced similar reforms in other countries of the region and elsewhere – led to reduced social solidarity and equity and intensified poverty and inequality. Over the past 18 years, however, democratic governments have corrected many design faults in the original reforms. The author examines the progress achieved and areas of persistent social inequality in terms of coverage, gender balance and funding, and identifies future challenges.     

Demographic Responses to Economic Recessions in Latin America Since 1900*

This paper explores the linkages between economic cycles and demographic processes in Latin America since 1900. We identify the mechanisms through which economic conditions have an impact on demographic outcomes and assess the demographic and socioeconomic consequences of the 1980s. Selected historical evidence is reviewed to illustrate the effects of economic cycles in Western Europe and, aided by an heuristic framework, tentative hypotheses are derived to interpret empirical evidence about the effects of the 1929 and 1980 depressions in selected Latin American countries. Results show that the demograhic consequences of the Great Depression were nontrivial. The analyses of demographic and socioeconomic responses of the post-1980 recession, however, reveal only weak linkages for some outcomes. We argue that the weak relationships may mask important transformations currently underway and conclude with a discussion of the implications for future research.     

Contemporary Research on Social Movements and Protest in Latin America: Promoting Democracy, Resisting Neoliberalism, and Many Themes in between

This essay outlines how research on Latin American social movements has evolved since the late 1980s. Emphasis is given to two topics. First, the essay examines how Latin American social movement research has historically been oriented toward social movement theories that emerged out of the study of European movements and, to a lesser extent, movements in the United States. At the same time, it discusses how the unique historical and contextual factors of Latin American societies have repeatedly been found to defy adequate explanation by these theories. Second, the essay outlines five major themes that characterize the Latin American social movement literature: the dynamics of movements in relation to transitions to democracy, and to neo-liberal economic reforms, as well as transnational movement dynamics, indigenous movements, and women's movements.     

Liberalisation,gender, and the land question in sub-Saharan Africa

This article focuses on land reform initiatives undertaken in sub-Saharan African countries since the late 1980s. Section 1 sheds light on the changes in land tenure during the economic liberalization of the region. Section 2 briefly examines the gender-blind "mainstream" theoretical debates on land, and gender-sensitive studies on land issues. Section 3 offers insights on land issues in Africa from a gender perspective. Sections 4 and 5 reviewed the cases of Tanzania and Zimbabwe who have undergone a radical transition in terms of institutional land reforms since the 1980s, and the impact of economic and political liberalization on women's access and rights to land. Drawing on the two case studies, this paper is a call for policy makers, researchers, and activists to refocus their attention to these neglected issues.     

Workers’ Remittances and Domestic Investment in South Asia: A Comparative Econometric Inquiry

This study explores the effect of workers’ remittances on domestic investment in four selected South Asian countries: Bangladesh, India, Pakistan, and Sri Lanka, using contemporary time series estimation techniques from 1980 to 2017. The estimated results of the ARDL bounds approach to cointegration analysis have revealed that among selected South Asian countries, Pakistan has witnessed a significant negative effect in the long run. Similarly, the findings of other forms of capital flows also revealed varying effects across the countries considered. This study urges the transformation of aggregate economic behaviour from consumption to the production side, by adopting policies that would encourage domestic saving and investment activities. In this regard, among others, reduction in the interest rate and the interest rate spread would be beneficial. It urges the identification of factors that conditions varying effect of workers’ remittances and other capital inflows to mitigate negative effects into positive.     

Informality and Contributory and Non‐Contributory Programmes. Recent Reforms of the Social‐Protection System in Uruguay

Several countries in Latin America are expanding their social‐protection systems. There is an on‐going debate about the trade‐offs implied by these expansions, and by the resulting interactions between contributory and non‐contributory programmes with informality in the labour market. This article analyses the potential incentive effects for formal and informal employment from a set of social‐protection reforms implemented in Uruguay in the 1990s and 2000s. It presents empirical evidence of the expansion of health insurance to formal workers' dependants, and finds that this reform significantly increased formal employment. Finally, it discusses possible alternatives to extend social‐protection systems while maintaining incentives for formal work in Latin America's labour markets.     

Banks That Don't Lend? Unlocking Credit to Spur Growth in Developing Countries

This article explores the level of liquidity within the banking systems of developing countries and the potential impact on rates of economic growth from prudently redirecting a portion of liquid assets into credit to the private sector. It finds that banks in developing countries are extremely liquid and growth rates per capita might increase substantially in response to heightened lending to the private sector. It then summarises the primary obstacles to this and presents several policy reforms that can augment the level of credit to the private sector in developing countries.     

Social security reform in Latin America: policy challenges

Over the last decade Latin American countries have served as the world's laboratory for pension systems based on individual retirement savings accounts. Some countries have adopted defined-contribution individual accounts as a replacement for state-run pension systems; other countries have embraced mixed systems of have made individual accounts optional and supplementary. This article outlines some of the most significant elements of recent Latin American pension reforms and examines some of the most serious policy challenges faced by governments implementing the new systems of individual accounts, including the need to reduce administrative costs, limit evasion, incorporate new categories of workers into the system, and improve competition in the pension fund industry. The authors conclude that there is no single Latin America model, and that reform itself has been and will continue to be an incremental process.     

Women's Welfare and Social Security Privatization in Mexico

Several Latin American countries have fully or partially privatizedtheir public pensions since the 1980s. In 1995 Mexico privatizedits public pension system, including a shift from a definedbenefit to defined contribution system based on privately administeredindividual accounts. This article uses feminist criteria toevaluate the gender impact of welfare regimes and concludesthat the Mexican pension privatization will have a negativeeffect on women’s welfare in old age.     

Poverty and psychological distress in Latin America

The objective of this paper is three-fold: first, to study the psychological distress of the Latin American poor. Second, to study differences in psychological distress between the poor and the relatively wealthy in Latin America. Third, to study how economic growth impacts the psychological well-being of the poor.This paper uses micro-level information from the Gallup 2007 Survey for 16 Latin American countries to study psychological distress of the poor in Latin America; the survey is representative at the country level. The investigation works with approximately 12,500 observations. Psychological distress is measured on the basis of a set of questions regarding a person’s emotional situation the day before he/she answered the questionnaire.The investigation finds out that the poor show greater psychological distress than the wealthy and that the gap is statistically significant. However, it would be inappropriate to attempt predicting a person’s psychological well-being on the basis of his/her poverty condition alone, since many factors affect people’s psychological well-being. The paper also shows that rapid economic growth seems to be detrimental to the psychological well-being of the poor, and that the impact of economic growth on psychological well-being differs between the poor and the relatively wealthy.     

States,elites, and inequality in Latin America

In this article, I review the literature on elites and inequality in Latin America with a focus on the emergence of uneven state structures and how they came to foster the needs of elites for protection. States in Latin America are traditionally thought of as facilitating processes of top‐down modernization that transformed traditional agrarian economies into complex urban polities, while maintaining extreme inequality. The state is thus central in the genealogy of inequality and elite privilege in Latin America. The synergy between states and elites continues to mark Latin American societies, and it helps us to understand how major economic and political changes occur without significant changes in inequality. For the most part, Latin America's current uneven states emerged as the result of exclusionary projects of citizenship during the first half of the 20th century and were advanced by the advent of repressive regimes during the 1960s and 1970s. After democratic transitions during the 1980s and 1990s, Latin American states came to be characterized, on the one hand, by procedural democratic institutions and on the other, by high levels of state violence, exclusion, and segmented citizenship. The present situation is one of a problematic equilibrium between states, elites, and inequality.     

The Rise of China: Implications for Latin American Development

This article analyses the implications of the rapid economic rise of China for the development prospects of Latin America. Based on an analysis of the changing trade relations between China and 15 Latin American countries over the period 2000–6, it argues that these relations have significantly exacerbated the subcontinent's dilemma of being caught in the middle‐income trap. At the same time, some of the key drivers behind China's economic success point to a possible solution, first and foremost the lessons provided by its proactive development strategy which has focused on developing domestic technological capabilities and diversifying the productive structure with a move up the value chain.     

Migration from Latin American countries to the United States: the economic,social and reproductive lives of Hispanic female immigrants, 1980

The authors describe the socioeconomic characteristics and fertility patterns of female immigrants from Latin America to the United States, with a focus on reasons for fertility differentials. "Using the one per cent public use sample from the 1970 and 1980 United States census, we first compare changes in socio economic characteristics from 1970 to 1980, and then examine the determinants of fertility of female immigrants to the United States, aged 16-49, from four Latin American areas or countries of birth.... The findings...suggest that there are direct effects of demographic, assimilation, and socioeconomic variables beyond those mediated by the variables in each of these sets. Further, regardless of the model, the effect of the clusters of demographic characteristics is most apparent. Age categories and marital status are the strongest indexed determinants of immigrant fertility.... The effect of education and employment is strong. Among assimilation variables, duration of residence and language ability are significant determinants of Hispanic immigrant fertility." (SUMMARY IN FRE AND SPA)     

Labour market turnover in Latin America: How intensive is it and to what extent does it differ across countries?

The study of labour market turnover is particularly significant in Latin America, which is characterized by marked economic cycles and limited social protection coverage. This article estimates the intensity of transitions from employment in six countries in Latin America in the new millennium and decomposes the differences observed, furthermore evaluating the employment destinations of workers making such transitions. The countries under analysis show very different turnover rates, which are mostly explained by a dissimilar incidence of informal and temporary employment. In all cases, a large share of job exits imply transitions to precarious jobs or unemployment.     

Changing Economic Opportunities,Family Structure,and Poverty in Rural Areas1

Abstract Instrustrial restructuring in the 1980s ushered in a new pattern of growing economic diversity over geographic space. The objective of this study is to examine the extent and etiology of changing spatial inequality between and within metropolitan (metro) and nonmetropolitan (nonmetro) areas, as measured by increasing or decreasing county poverty rates. Results based on data from the 1980 and 1990 census summary tape files suggest several conclusions. First, poverty rates increased more rapidly in nonmetro than metro counties during the 1980s; historical patterns of metro-nonmetro economic convergence slowed over the past decade. Second, poverty rates tended to decline in nonmetro counties with traditionally high rates of poverty, thus providing counter-evidence to arguments suggesting that the gap between traditionally poor and nonpoor nonmetro counties has widened. Third, spatial differences in poverty rates and relative increases in county poverty rates over the 1980s were most strongly associated with women's employment and headship status. The results raise questions about the extent to which traditional rural economic development strategies address the potentially deleterious economic effects of rising percentages of poor female-headed families.     

The structure of consumer confidence in four EEC countries

This paper reports an exploration of the structure of consumer confidence in four of the countries participating in the EEC harmonized consumer attitudes surveys. The analysis is based on two EEC surveys in each of the countries concerned and uses the rotated solutions on the first three factors of the data. It was found that the different countries and surveys had similar factor structures which were interpreted as general economic conditions: personal financial circumstances; household durable buying intentions. The position of price expectations and attitudes to saving within these factor structures is also of interest in the interpretation of consumer behaviour.     

Persistent marriage regimes in changing times

Marriage among women in Latin America occurs early in life and is nearly universal in spite of the social and economic changes and instability in the region. We use demographic measures to illustrate the precociousness, persistence, and universality of marriage during the past 50 years. We argue that marriage is central to social life because families serve as an important cultural institution for countering the vicissitudes of the economy. Women's roles within families and households are key, as has been illustrated by the growth of literature on household survival strategies during the 1980s and 1990s, when the region experienced widespread economic crisis and restructuring.     

Rapid Reregulation,Agricultural Restructuring,and the Reimaging of Agriculture in New Zealand1

Abstract As a member of the Cairns Group, New Zealand is an excellent case for investigation of the impacts of market-based restructuring and the emergence of new mechanisms for regulation. The paper examines how agriculture in New Zealand has been impacted by economic reforms that have fundamentally changed the nature and interrelations of regulatory arrangements and economic processes. The paper sketches the origins of New Zealand's agricultural crisis and the main features of the reforms, outlines developments in several global commodity chains (meat, dairy, apples) that since the mid 1980s have shaped regulatory and governance adjustments, and explores dimensions of a reimaging of agriculture in new conditions. The paper concludes that agri-food restructuring in New Zealand is implicated in the wider integrative project of globalization. Agriculture's reconstruction reopens the scope and terms under which New Zealand labor and households might be able to participate in the agri-food sector.     

Can Migration Foster Development in Mexico? The Case of Poverty and Inequality

The impact of migration on development can be analysed from a number of perspectives. This article focuses on poverty and inequality. It assesses the relative contribution of migrants to Mexico′s economy through remittances, compared to other Latin American countries; analyses the distributional impact of remittances (with an emphasis on the poor), and compares this impact to the counterfactual impact of migrants’ stay‐at‐home income. It explains the processes leading to scant economic success rates among poor international migrants. Finally, it describes the nature and impact of current Mexican migrant‐oriented policies, and recommends a shift in focus, to lessen emigration, increase the income of migrants, promote returns, and bolster the economic impact of returning migrants.