Lecture 14: Neoliberalism and its discontents in Latin America Flashcards
Summarize the debt crisis starting from 19th century to 1990
Debt began after wars of independence
- borrowing from foreign countries
- a lot of corruption and clientelism
- loss of control over key industries/resources
1910-1959: Wave of nationalization
1960s-1970s: push for more infrastructure/industrialization leads to more borrowing (debt increases again)
- debt balloons in authoritarian regimes
- After Cold War –> neoliberalism
What were the benefits of 1990s neoliberalism?
- GDP rises
- new middle class
- democratic governments begin to replace dictatorships
- debt reduction
What was the Washington Consensus?
Reform package for countries in crisis (elaborated by many US institutions)
How did the economic paradigm shift in the 1990s?
Went from import substitution industrialization to export-led industrialization
What are the consequences of the 1990s neoliberalism wave?
- Widening economic inequality
- Environmental destruction
- Loss of key industries to multi-national corporations
- Currencies become unstable
- Worsening social services
- The Great Recession
What characterizes the Velasco era (1968-1975) in Peru?
- Left-wing military rule under General Velasco
- Ambitious social reforms
What were the social reforms put in place during the Velasco era?
- Agrarian reform (ending hacienda system)
- Nationalization of oil, mining, and fishing industries
- Workers got partial ownership of companies through industrial communities (middle path between socialism and capitalism)
What characterizes the Fujimori era 1990-2000?
- Fujishock –> immediate pain but stopped hyperinflation
- Becomes increasingly authoritarian
- Economy stabilized but at the cost of democratic institutions
- Successfully fights Shining Path
What happened after the Velasco era in Peru?
- Oil prices crahsing, high debt, rising inflation
- Return to democracy
- Shining Path guerrilla movement
Who is the current president of Peru?
Boluarte
What are the contemporary challenges that Peru faces?
- Political system seems to be broken
- Huge gap between Lima and rural regions despite overall economic growth
- Environment problems (mining/deforestation)
- Informal economy –> lack of worker protections
- Inadequate education/healthcare
- Corruption
- Social conflicts especially around mining
- Ineffective and politicized justice system
What happens after Fujimori flees Peru in 2000?
- Democratic reconstruction
- Significant poverty reduction and middle class growth
- However, inequality remains
When was the first peaceful democratic transition in modern-day Mexico?
2000-2012 during the PAN era that ended PRI dominance
What happened in Mexico in 2012-2018?
- PRI returns
- Major structural reforms
- Energy sector opens to private investment
- Corruption –> rising public dissatisfaction
What party is currently in power in Mexico? What characterizes them?
MORENO (leftist party)
- Shift to nationalist-populist governance
- Focus on anti-corruption and social programs
What are the key transformations in Mexico?
- Evolution from one-party state to multi-party democracy
- Ongoing challenges with corruption and organized crime
- Changing relationship with US
- Rise of new political movements and voter realignment
What characterizes Chavismo era (1999-2013) in Venezuela?
- Renames to Bolivarian Republic (in honour of Simon Bolivar)
- Implementation of social policies and oil nationalization
- Growing international tensions, especially with US
What happened since Chavez’s presidency?
- Severe economic crisis and hyperinflation
- Institutional crisis
- International community divided over recognition of government
- Mass emigration
- Madura is president
Who is the current president of Venezuela?
Maduro
What are the key impacts in Venezuela?
- Transformation from democracy to authoritarian system
- Collapse of oil-dependent economy despite vast reserves
- Humanitarian crisis
- Venezuelan migration
What makes telenovelas different from US soap operas?
Closed structure and tailored to the whole family
