We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
Published online by Cambridge University Press: 05 June 2012
At the beginning of the 1960s it was widely believed that regional integration would restore the dynamism of the inward-looking model of development in the larger republics and provide a platform for industrialization in the smaller countries. Yet by the end of the decade the mood had changed. Regional integration – at least in South America – had not brought the expected gains, and the inward-looking model seemed to be subject to diminishing returns. The prestige of CEPAL, which had nailed its colors to both inward-looking development and regional integration, declined despite the regional organization's best efforts to revise its approach to industrialization, and the Latin American policymaking elite began to pay more attention to alternative ideas on trade and development.
The Achilles heel of inward-looking development remained the balance-of-payments constraint. After 1929 persistent balance-of-payments problems had persuaded more and more countries to abandon export-led growth based on primary products in favor of a new model that was expected to lower their vulnerability to external shocks. Yet balance-of-payments problems continued under inward-looking development as the policies adopted to favor industry undermined the export sector and shifted the composition of imports in the direction of complementary goods – the demand for which expanded rapidly in line with industrial growth.
Under the new model, therefore, vulnerability to external shocks remained acute, as events after 1970 clearly demonstrated.
To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.
