Industrialization in Latin America: from the “black box” to the “empty mailbox”
Abstract
In this paper the author offers an alternative development strategy to the previous
import substitution inner oriented, state led one, but also to the “new orthodoxy of the 1980’s”-
the neoliberal approach. This alternative is based on the experience of European countries and
particularly of the Asian Tigers, that he calls GEICs (Growth with Equity Industrializing Countries).
These countries were able to develop combining high rates of growth with a reasonable
distribution of income. This “mail box” is void in Latin America. If we build a two entry matrix
having in the lines the growth rate (low or high) and in the colons the degree of equity (bad or
reasonable), and we plot the Latin American countries in this matrix, the box “high rate of
growth-reasonable degree of equity” will be void. If Latin America is able to fill this box, savings
will increase, technical progress will be accelerated, growth will be resumed.
JEL Classification: O25; L52.
Keywords: Economic development industrialization industrialization of Latin America