By Jerry Haar, John Price
With dynamic progress in China and India, restoration in Europe and Japan, and striking profits in U.S. productiveness, the query arises: Can Latin the USA compete? Many argue that macroeconomic and exchange reforms accomplished within the Nineties basically positioned a good-looking coat of paint over schooling, hard work, judicial, and administrative reforms that stay incomplete. This publication identifies and analyzes ten components that the majority impact the competitiveness of Latin American international locations and may form their financial futures. In their frank and direct assessment--pulling no punches--the authors additionally current conceivable classes of motion that Latin the USA can take to extend its skill to compete within the worldwide economic climate.
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Extra resources for Can Latin America Compete?: Confronting the Challenges of Globalization
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9. : Institute for International Economics, 1990). 10. Nevertheless, there is a downside to globalization for China—namely, the inability of the economy to generate enough jobs for its population, especially those citizens who continue to flock to the cities in large numbers. Although the United States and other industrialized nations lament, and in many cases condemn, the outsourcing of jobs to China, that nation is actually losing manufacturing jobs. See Caroline Baum, “So Who’s Stealing China’s Manufacturing Jobs?
Another Washington Consensus tenet that has gone unheeded is that of deregulation and building a level playing field that allows all companies to compete head on. With few exceptions, Latin American industry regulators still lack the authority, if not good intentions, to correct the anticompetitive practices of powerful industrialists. A noted example is the battle waged between Telmex and foreign long-distance carriers who claimed that Mexico’s local phone company held a monopoly position and, therefore, could and did charge outlandishly high (and unfair) connection rates for out-of-country calls.
The return of populism to politics in Venezuela, Ecuador, Bolivia, Peru, and Mexico is partly explained by the wide-scale rejection of neoliberal reforms, and undoubtedly includes also a healthy dose of anti-Americanism caused by that country’s unpopular war in Iraq and the renewed neglect of Latin America. 27 Of the ten areas of reform outlined in the Washington Consensus, only two were properly executed in Latin America, another four were mismanaged, and the four most difficult reforms were never touched.
