Democracy and Neoliberalism

Essay by tornalboy2College, UndergraduateA-, April 2004

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There are many problems with Latin America's economic development. Even though Latin America is working on being economically sound, there are still glitches in the system. The economic policies of Latin America negate democracy in many ways. This includes the economic polices after the 1930's and after the 1980's. The social structure of Latin America was based on Neoliberalism, and the demise of women because of Neoliberalism. The gap between the rice and the poor is becoming larger, instead of decreasing. This causes a huge problem for the economic development of Latin America.

Latin America is very rich in natural resources. Between the period of 1860's, and 1929, Latin America's economy was based on exports. 1929 is when the stock market crashed, and the start of the great depression. The fall of the stock market caused the prices of Latin America's exports to decline. This was a problem, so there was a need for a new economic policy.

The Import Substitution model was born. This was created because Latin America was too dependent on industrialization. Therefore, raw materials and machinery were imported. The more industry increased the more dependent Latin America was on foreign exchange. This caused a small domestic market with in Latin American countries. Import Substitution Industrialization or (ISI) was based on the internal market of Latin Market. Latin America wanted to better there own countries with their natural resources, instead of shipping them to other countries. Latin America wanted their own people to buy goods from with in the country, to help the economy grow. This would protect there own industries. This policy worked for three decades. For this policy there was a constant need for the flow of the money, but did not work out as planned. The rich, who had all the money, were not...