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Contemporary Latin America: Development and Democracy beyond by Francisco Panizza

By Francisco Panizza

Latin the USA has replaced dramatically during the last few years. whereas the Nineteen Nineties have been ruled by way of the political orthodoxy of the Washington Consensus and the political uniformity of centre correct governments the 1st decade of the hot century has obvious the emergence of a plurality of financial and political possible choices. In an summary of the heritage of the quarter during the last twenty-five years this ebook lines the highbrow and political origins of the Washington Consensus, assesses its effect on democracy and financial improvement and discusses no matter if the emergence of various left-wing governments within the area represents a transparent holiday with the politics and guidelines of the Washington Consensus. basically written and carefully argued the booklet can be of curiosity to lecturers, scholars of Latin American politics and anyone attracted to figuring out modern Latin America..

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In this new narrative, the failure of incumbent governments (most of them first- or second-generation post-military regime democratic governments) became part of a long historical period of failure, which paradoxically bound together the embattled democratic governments and the military regimes that preceded them as upholders of an outdated ‘populist’ economic model. Within this new political context, economic liberalism’s mistrust of 28 the state and ultimately of politics resounded with popular disillusionment with the status quo.

After 1983, the government eliminated import licence requirements, official import prices and quantitative restrictions. Stabilization measures adopted in 1983 were largely abandoned in 1984, but the oil crisis of 1985–86 made the status quo unsustainable (Philip 1993). In spite of the de la Madrid administration’s economic failures, the ruling PRI maintained control of the political order by appealing to traditional corporatist-style agreements to secure political and economic stability. In 1986 Mexico acceded to the General Agreement on Tariffs and Trade (GATT), now the World Trade Organization (WTO) (Stallings 1992: 80), and in 1987 it agreed to a major liberalization of bilateral trade relations with the United States.

To ensure that these conditions are fulfilled, it is in principle a legitimate part of the Fund’s purpose to attach conditions to its lending, particularly as, in the Fund’s view, conditions would merely be a statement of the policies that a deficit country should adopt in any case (Thirkell-White 2005: 21–2). The legitimacy of the IMF’s conditionality mechanism has, however, been challenged on three grounds: the way in which con­ditions are imposed, their content, and the interests they serve.

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