European integration and Latin American trade

Difficult as it is to forecast the magnitude of the impact of the Single European Market (SEM); on the rest of the world and on the European Community (EC); itself, the predominant feeling is one of concern, especially in the developing countries. This article seeks to determine how the completion of the SEM may affect Latin America's exports to the Community, using basically a short- and medium-term analytical approach. This is because a series of elements make it possible to predict with some confidence that the deepening of Community integration will take more time than originally fore…

In memory of Pedro Vuskovic

For those of us who shared many years of friendship and professional collaboration with Pedro Vuskovic, the news of his recent death in Mexico has been the cause of great sorrow, not only because of the circumstances of his death, following a cruel disease that gradually sapped his physical -but not intellectual- strength, but also because it signifies the loss of a great Latin American, of a teacher who helped shape so many generations of young people in our region, and of a companion during so many days of intellectual strivings and political struggle. Pedro joined the Commission in 1950, sh…

The monetary crisis, dollarization and the exchange rate

The purpose of this paper is to contribute to the debate on stabilization policies in conditions of high inflation in the light of the experience of Brazil and some other countries, especially the European monetary crises of the 1920s and the stabilization of the Argentine currency in 1991/1992. The paper begins with some comments on certain special features of situations of high inflation, with emphasis on the unfeasibility of following the sequence of measures recommended for dealing with only moderate imbalances. It goes on to criticise some aspects of the economic policy adopted in Brazil …

Capital flows and their effect on the monetary base

The large capital inflows into some Latin American countries since 1990 are a mixed blessing, for they widen the trade-off between disinflation at home and competitiveness abroad. A large part of the flows seems to be temporary rather than permanent. Permanent flows should be accommodated by an upward float of the currency, temporary flows by sterilized intervention on the foreign exchange market. Recent evidence suggests that sterilized intervention is more effective and carries lower fiscal costs than is often maintained. Asian policy practice suggests ways of sterilized intervention even wi…

Flying geese or sitting ducks? Transnationals and industry in developing countries

The constitution of a new international industrial order dominated by a core of large transnational corporations generally makes life more difficult for the great majority of developing countries because, since most are not in a position to compete effectively, they face still greater marginalization. TNCS more than ever before can significantly influence the international competitiveness and therefore the nature of incorporation of developing countries into the new increasingly integrated international production system. The national origin and form of foreign direct investment and technology…

The challenge of industrial competitiveness

Latin American manufacturing industry has undergone various changes in recent years. It has registered a favourable performance as far as exports are concerned, but production and investment have grown only slowly in a context of sluggish recovery of domestic demand and greater foreign competition. Other features are greater specialization in natural resource-based intermediate goods characterized by the importance of economies of scale, relatively long lead times for the heavy investments required, and the presence of privatized and transnational enterprises. At the same time, there are signs…

Integration and trade diversion

Regional integration has once again become an important issue for Latin America and the Caribbean. Compared with previous experiences, however, recent integration commitments have a number of new aspects in such areas as negotiating procedures, the issues involved in the various agreements -some of which are as unprecedented as the adoption of common currencies, the creation of binational companies, common labour laws, etc.- and the actual timing of these steps. Among the various integration initiatives now being pursued, four are particularly important by virtue of the relative weight of the …

Market failure and technological policy

This article highlights the need to complement macroeconomic policies designed to secure stabilization, deregulation and greater openness with other macroeconomic and microeconomic measures aimed at revitalizing the growth and competitiveness of the countries of the region. At the national level, in terms of macroeconomic measures, it is necessary to increase domestic saving and channel it towards productive investments within the local context, while microeconomic policy should include measures to develop and consolidate in the countries an innovative, wide-ranging system for furthering chang…

Bases de una propuesta temática instrumental para el ciclo de entrenamiento

Uno de los temas recurrentes en esta serie ha sido el tratamiento de los problemas que plantea la Gestión de Información. Por la naturaleza y alcance del tema, la serie ha abordado dichos problemas desde una perspectiva amplia que no pretende agotar la discusión sino por el contrario abrir espacios para la reflexión y el debate. Los productos por lo tanto no pueden considerarse como propuestas acabadas o finales sobre el tema. Más bien constituyen aportes colectivos para una discusión que se espera continúe desarrollándose en diferentes foros e instancias nacionales y regionales. Específicamen…

Regional integration in the 1990s

The renewed interest sparked by the potential for intraregional cooperation in Latin America and the Caribbean today has been reflected in numerous agreements regarding trade preferences and in attempts to establish free trade areas, customs unions or common markets. The possibility has even been discussed of setting up free trade arrangements on a hemispheric scale. This plethora of proposals inevitably raises a great many questions. What is the reason for this renewed interest? Are the differences between the schemes of today and those of the 1960s and 1970s significant enough to avert the o…

Socioeconomic structure and colective behaviour

This article provides an overview of a number of changes that have taken place in the region's economy, together with their effects in terms of its social stratification, and analyses the different social sectors' options for political action. A series of economic changes have altered both the traditional heterogeneity of the Latin American economy and the relative weight of its various sectors; this is reflected, for example, 9n the heightened importance of agribusiness and the reciprocal penetration of the services and production sectors. Today a generic distinction between i…

Anuario Estadístico de América Latina y el Caribe 1992 = Statistical Yearbook for Latin America and the Caribbean 1992

La edición 1992 del Anuario estadístico de América Latina y el Caribe contiene una selección actualizada a fines de diciembre de las principales series estadísticas disponibles sobre la evolución económica y social de los países de la región.…

Methodological bases for the programming and efficient management of public investment

Domestic requirements and complementary policies for a WHFTA