Latin America

Question 1

History of Latin America (1850s - 1880s)

Answer 1

Nation Building by Europe’s elite

• after slave trade, ruling elites promoted immigration from Europe.
• Post-independence nation building: transportation networks; railroads, canals, roads: British and North American investments

Question 2

Export - Import growth (1880s - 1930s)

Answer 2

• manufactured products from Europe, USA;
  Exports of raw materials and agricultural product to ^
• economic liberalism - political liberalism - the reformist movements: e.g. Brazils end of monarchy in 1889, mexican revolutian 1910

Question 3

Dependency theory (1948 by latin scholars) e.g. Rubber Boom

Answer 3

Dependency theory was very much about criticizing the western development theories that hindered the underdeveloped countries by exploiting their resources and labour force, as to develop themselves more.

Question 4

Reaction to great depression 1929

Answer 4

Import Substitution Industrialization (ISI)

• seeking less reliance on global market
• increasing direct/ indirect involvement of the state in creating the market
• ‘strong’ government, state owned cooperations, government loans

> Leading to the rise of military regimes.

Question 5

Military regimes > Redemocratization (1960s - 1980s)

Answer 5

• Getulio Vargas, Brazil (1930-1945; 1953-1954);
‘good dictator’ – state builder
military coup in 1964, democratization 1988

• Juan Peron, Argentina (1945 – 1955; 1973 - 1974 ); ‘good dictator’ – state builder
military coup in 1966 Videla – democratization 1983

• August Pinochet, Chile (1973-1990) – neoliberalism

Question 6

The lost decade: 1980s

Answer 6

• Limitations of ISI: not complete (import capital goods), limited demand, technology intensive, expensive
• 70s: oil crisis, debt crisis, inflation peaked
• 80s: Structural adjustment – debt cancellation, default
• 90s: Neoliberalization

Question 7

Leftist turn and backlash (2000s)

Answer 7

Emergence of peasant movements
• Impact ISI > subordinate role for agriculture
• Production of cheap food; expansion of agribusinesses
• Smallholders; landless and indigenous farmers neglected
• Modernization of the agricultural sector
• Provision agricultural services
• Persisting haciendas; fazendas (big pieces of land), demands for land reform 1960s/1970s

Question 8

Latin America’s Left Turn

Answer 8

(1950s – Cuban revolution – present)
• 1999-2013: Hugo Chavez; 2013-present: Maduro (Venezuela)
• 2003-2011: Lula da Silva; 2011- present: Dilma Roussef (Brazil)
• 2003-2007; 2007-2015: Kirchners (Argentina)
• 2006 – present: Evo Morales (Bolivia)
• 2006-2010: Michele Bachelet (Chile)
• 2007 – present: Rafael Correa (Ecuador)

Question 9

Conditional Cash Transfer (CCT)

Answer 9

program aims to reduce poverty by making welfare programs conditional upon receivers actions. Generally related to children’s health care and education

Question 10

Demographic statistics Latin America

Answer 10

in Demographic transition, currently stage 3.

• Fertility rate: 2.1
• Mortality under 5 years old: 1.0% to 4.9%
• Life expectancy at birth between 65- 80

Question 11

Debates on pension reform in Brazil

Answer 11

“ The Brazilian pension system has been subject to a series of ongoing reforms undertaken since the late 1990s. The need for reforms stemmed primarily from an overgenerous pension system that placed heavy pressure on the governmental budget. With the end of the military rule in 1988, the new democratic government implemented legislation that made the pension system the most generous and expensive among developing countries.” – esp. public servants – men 53 years; women 40 years!

Question 12

Ethnicities in Latin America (a cultural region

Answer 12

• Indigenous peoples – quechua, aymala, guarani, kayapo…
• Iberians - Spanish; Portuguese origins
• Africans brought to Latin America through slave trade
• Mulattos; mestizos

Question 13

President Chavez (Venezuela)

Answer 13

Profited massively from oil export. Invested oil money in social programs. When this led to overspending he borrowed heavily.

Question 14

President Maduro (Venezuela)

Answer 14

Followed in Chavez footsteps; government regulations, takeovers, corruption and restriction on imports led to a hostile business environment and the death of private companies.

Question 15

Consequences of urbanization

Answer 15

• no adequate/affordable housing for the vulnerable groups
• expansion of informal settlements: favelas
• youth unemployment, drug trade, voilence

Question 16

Middle income trap definition Latin America

Answer 16

Refers to the fact that a lot of countries reach a particular standard of living called “middle income”, but then they don’t break through to become fully developed and fully wealthy countries.

Question 17

Hypothese why countries get stuck in the Middle income trap

Answer 17

• as countries get wealthier, wages rise; they are no longer able to compete with cheap labor countries
• as countries get wealthier, fertility drops and longevity is increased; this causes a decline (sometimes negative) demographic dividend
• economic growth depends a lot on innovation. Mexico went from producing tomatoes to cars, but producing the next Google or Facebook will be harder.

Question 18

Have countries have broken through the trap (Japan, South Korea)

Answer 18

• continue to invest in economic specialisation
• improve systems of education
• worked at being innovators
• they have moved to democracy
• they have a thick middle class, which demands decent results from their government
• Large scale institutions at world class levels.

Question 19

Neo-extractivism

Answer 19

Policies that rely heavily on extractivist activities to finance social reforms and programs.

Question 20

consequences of Neo-extractivism

Answer 20

• dependence of extractivism - mining - which is dependent on the global market (demand)
• corruption charges
• losing support from social/environmental movements

Question 21

The Washington Consensus

Answer 21

Term for the 10 specific governance prescriptions that belonged to the standard reform package as administrated by the IMF, WB and the US department of the Treasury

Question 22

Free-trade agreement in Latin America

Answer 22

• 1989 – APEC – Asia-Pacific Economic Coooperation: Asian countries, US,
Canada, Mexico, Chile, Peru
• 1994 – NAFTA - The North American Free Trade Agreement: US, Canada,
Mexico
• 1995 – Mercosur: Argentine, Brazil, Bolivia, Paraguay, Urguay, Venezuela
• 1997 – Andean Free Trade Community: Bolivia, Peru, Ecuador, Colombia,
Venezuela
• 2003 – CAFTA - Central American Free Trade Agreement: US, Guatemala,
El Salvador, Honduras, Nicaragua, Costa Rica, Dominican Republic
• 2016 – TPP – Trans-Pacific Partnership: Different Asian countries from
APEC, US, Canada, Mexico, Chile, Peru

Question 23

Ten points of the Washington Consensus

Answer 23

1. Fiscal policy with avoidance of large fiscal deficits relative to GDP;
2. Redirection of public spending from subsidies toward market-based provision of key progrowth, pro-poor services like primary education, primary health care and infrastructure investment;
3. Tax reform, broadening the tax base;
4. Interest rates reform
5. Competitive exchange rates
6. Trade liberalization: liberalization of imports, with particular emphasis on elimination of
   quantitative restrictions (licensing, etc.); any trade protection to be provided by low and
   relatively uniform tariffs
7. Liberalization of foreign direct investment
8. Privatization of state enterprises
9. Deregulation: abolition of regulations that impede market entry or restrict competition
10. Legal security for property rights

Question 24

Development in the Amazone (Development = environmental destruction)

Answer 24

• 1960 – construction of Brasilia
• 1960s-1970s Highway constructions to open up Amazone
• 1970s- Land reform attracting land seeking farmers
• Logging industries
• Large cattle ranchers
• Large land investments

Question 25

United Nation on the Human Environment (Stockholm, 1972)

Answer 25

• first time environmental problems were discussed on a international level.
• resulted in the declaration of Stockholm - 114 delegations from over the whole world concluded collective measures to protect the environment are needed.
• beginning of the UNEP (United Nations Environmental Program)

Question 26

World Conservation Strategy 1980

Answer 26

• first time that governments, non-governmental organistions, and experts throughout the world have been involved in preparing a global conservation document.
• first time development has been suggested as a major means of achieving conservation, instead of being viewed as an obstruction to it.

Question 27

Sustainable development

Answer 27

“development that meets the needs of the present without compromising the ability of future generations to meet their own needs”

Question 28

Environmental Governance

Answer 28

• involves system of governing, means for the allocation of resources and the exercise of control and coordination in which state and nonstate actors play various roles
• corporate social responsability

Question 29

Environmental justice (movement)

Answer 29

1) distributive justice
- fair distribution of cost and benefits - compensation,
livelihoods security
2) procedural justice based on recognition
- Equal rights for everyone to participate in negotiation
and decisionmaking about environmental
management and governance.