Latin American capitalism: economic and social policy in transition

Abstract

During the last theree decades, and contrary to expectations, Latin Americas economis performace has been poor nad many of its structural weaknesses have deepened. Despite the recent eport commodity boom, the regions average growth rate in real dollars over the last two decades (from 1986 to 2006) has been only 2.8 per cent, trailing almost all other regions of the world. Neo-liberal reforms not only failed to stimulate the hoped- for levels for growth, but also made little impact on Latin Americas high levels of persistent poverty and ncome inequelity. By the mind-twentieth century- when the first credible data on income distribution were produced - Latin Americas was already the most unequal region, and it remains in the same position fifty years later (Mann & Riley, 2007). In contributing to the consolidation of a dual economy syndrme, and failing to invest in human resources, Latin Americans high concentration of incomeand wealth has impacted negatively on its economic performace.