ost Decades? Economic Performance in Post-Independence Latin America (Prados De La Escosura)

Question 1

What time period does the paper assess regarding Latin America’s economic performance?

Answer 1

1820-1870

This period is noted as the post-independence era for Latin America.

Question 2

What term does the paper argue is an unwarranted depiction of the post-independence period?

Answer 2

‘lost decades’

The paper challenges the view that the half-century after independence were ‘lost decades’.

Question 3

What alternative comparison does the paper suggest for analyzing Latin America’s economic performance?

Answer 3

Former European colonies

This comparison is said to provide new insights into Latin America’s performance.

Question 4

What offset the release from the colonial fiscal burden according to the paper?

Answer 4

Higher costs of self-government

The transition to self-governance introduced new financial burdens.

Question 5

What was the general impact of integration into the world economy on Latin American economies?

Answer 5

Net gains, though unevenly distributed

The integration had a long-term positive effect, despite regional disparities.

Question 6

How did per capita GDP in Latin America change on average during the post-independence period?

Answer 6

Moderate average growth

This growth varied significantly across different regions.

Question 7

Compared to which regions did Latin America maintain or improve its position during this period?

Answer 7

Africa and Asia

Latin America’s growth outpaced these regions, despite falling behind the United States.

Question 8

What does the paper suggest about the economic discontinuity caused by independence?

Answer 8

It was shorter than often assumed

The paper presents a more gradual economic picture than previously thought.

Question 9

What significant issue did independence exacerbate within Latin America?

Answer 9

Regional disparities

The economic differences between regions increased after independence.

Question 10

Why is relying solely on the United States as a benchmark considered problematic?

Answer 10

Differing initial conditions and development potential

The US had unique factors that may not apply to Latin American countries.

Question 11

What does the paper argue about the experience of former European colonies in Asia and Africa?

Answer 11

They provide a more relevant comparison

Their similar initial conditions may yield useful insights for Latin America.

Question 12

What impact did the opening up to the international economy have on Latin American countries?

Answer 12

Substantial but uneven impact

The integration into global markets was significant but varied among countries.

Question 13

What claims about early post-independence Latin America does the paper contradict?

Answer 13

Aggressive anti-trade policies and stagnant per capita export growth

Evidence presented in the paper shows significant trade growth.

Question 14

What did the inflow of British capital indicate about Latin America?

Answer 14

Significant integration into the international capital market

This integration, however, was uneven across different countries.

Question 15

What role did institutional modernisation play in economic performance?

Answer 15

Good predictor of long-term economic performance

Earlier modernisation in certain regions correlated with better economic outcomes.

Question 16

How did geography affect Latin American countries’ access to global markets?

Answer 16

Conditioned access and growth potential

Coastal regions generally had better access than landlocked areas.

Question 17

What was the growth rate of per capita product in Latin America between 1820 and 1870 compared to global averages?

Answer 17

Similar to the global average and European periphery; higher than Asia and Africa

This suggests that Latin America’s growth was competitive on a global scale.

Question 18

What is the central argument of the paper regarding Latin America’s economic performance after independence?

Answer 18

The paper argues against the notion of ‘lost decades’, suggesting moderate but sustained growth in per capita income.

The author contends that Latin America kept pace with the European periphery and outperformed Asia and Africa between 1820 and 1870.

Question 19

What were the initial economic consequences of independence from colonial rule in Latin America?

Answer 19

Independence brought potential benefits but significant costs, including increased administrative costs for new governments and disruption of fiscal transfers.

The colonial fiscal burden was removed, theoretically boosting GDP.

Question 20

How did the opening of Latin America to the international economy affect its post-independence economic performance?

Answer 20

The end of colonial trade restrictions allowed access to global markets, reducing costs and increasing trade volume, with improvements in net barter terms of trade.

The ratio of export to import prices improved for most countries.

Question 21

What fiscal challenges did newly independent Latin American nations face?

Answer 21

Increased costs of administering independent states and the disintegration of colonial fiscal systems.

This also included chronic deficits and destruction of colonial treasuries.

Question 22

Define net barter terms of trade (NBTT).

Answer 22

The ratio of a country’s export prices to its import prices, indicating purchasing power.

NBTT reflects the quantity of imports that can be purchased with a given quantity of exports.

Question 23

How did geographical factors influence trade patterns in post-independence Latin America?

Answer 23

Location (coastal vs. landlocked) and transportation infrastructure significantly impacted trade patterns and costs.

Geographical challenges affected regions’ integration into the global economy.

Question 24

What does the analysis of purchasing power of exports per capita suggest about economic impacts in Latin America?

Answer 24

It indicates significant but uneven impacts, with the Southern Cone and Caribbean showing greater growth rates.

There was a notable increase in trade size for many countries.

Question 25

What were some primary economic consequences of political instability and war in post-independence Mexico and Peru?

Answer 25

Wartime destruction, capital flight, mining depressions, and fiscal mismanagement negatively impacted growth. ## Footnote Political turmoil was a significant factor in these countries.

Question 26

How did Cuba's economic performance as a slave economy compare to independent Latin American republics in the mid-19th century?

Answer 26

Cuba experienced sustained economic progress until around 1860, unlike many independent republics that faced upheaval. ## Footnote This highlights different economic trajectories post-independence.

Question 27

What does the comparison of per capita GDP levels between Latin America and the United States reveal?

Answer 27

Latin America saw a relative decline in per capita GDP compared to the rapidly growing United States. ## Footnote The United States' exceptional growth raises questions about its suitability as a comparator.

Question 28

What notable similarities existed between Latin America's initial economic conditions at independence and those of African and Asian countries gaining independence in the mid-20th century?

Answer 28

High fertility rates, high land-labour ratios, high transport costs, and low human capital endowment. ## Footnote Shared experiences with colonial governance and state formation were also significant.

Question 29

How does the author evaluate the term 'lost decades' for post-independence Latin America?

Answer 29

The author argues it is inadequate, citing growth rates similar to the global average and better than Asia and Africa during 1820-1870. ## Footnote Aggregate data suggests a more nuanced economic performance.

Question 30

What role did institutional modernisation play in Latin America's economic performance post-independence?

Answer 30

It was significant in influencing long-term economic performance across the new republics. ## Footnote Institutional factors were critical alongside geographical considerations.

Question 31

Fill in the blank: The _______ refers to the breakdown of the centralized colonial financial system into multiple national fiscal entities after independence.

Answer 31

Fiscal Disintegration

Question 32

True or False: The Prebisch School argues that the terms of trade tend to improve for developing countries that primarily export raw materials.

Answer 32

False

Question 33

What are the Exports/GDP ratios used to measure?

Answer 33

The value of a country's exports as a percentage of its Gross Domestic Product. ## Footnote This indicates the importance of international trade to the economy.

Question 34

What is the significance of British Portfolio Investment in Latin America?

Answer 34

It measures integration into the international capital market and indicates the sectoral distribution of investment. ## Footnote Investments were concentrated in government loans, railways, and public utilities.

Question 35

What was a key consequence of independence for Buenos Aires?

Answer 35

The end of colonial regulations that forced it to trade through the metropolis, leading to a shift towards livestock exports. ## Footnote This marked a significant change in trade patterns post-independence.

Question 36

What challenges did post-independence Latin America face regarding public goods and fiscal transfers?

Answer 36

Duplicated defence and law enforcement expenditures, challenges in coordinating public goods, disruption of intra-colonial fiscal transfers and trade networks ## Footnote These challenges contributed to a lack of stability and economic integration.

Question 37

How did the opening of Latin America to the international economy affect its trade?

Answer 37

Allowed direct access to global commodity and factor markets, potentially reducing costs and increasing trade volume ## Footnote The integration was uneven, benefiting coastal regions more than landlocked areas.

Question 38

What was the effect of political instability on economic development in post-independence Latin America?

Answer 38

Negatively impacted trade and investment, increased military expenditures, led to capital destruction, hindered fiscal and monetary stability ## Footnote The struggle for fiscal resources exacerbated political tensions.

Question 39

How did Brazil's experience after independence differ from that of Spanish America?

Answer 39

Achieved independence gradually, remained united and centralised, experienced a relatively peaceful transition and institutional continuity ## Footnote This stability contrasts with the fragmentation and turmoil in many Spanish American republics.

Question 40

What was Cuba's economic situation before achieving independence in 1898?

Answer 40

Exhibited sustained economic progress until the late 1860s within a colonial framework ## Footnote This provides a contrast to the disruptions seen in independent Spanish America.

Question 41

How does the paper challenge the narrative of the 'lost decades' in Latin America?

Answer 41

Presents evidence of moderate but positive per capita GDP growth between 1820 and 1870, indicating sustained economic expansion ## Footnote This contrasts with the view of stagnation or decline during this period.

Question 42

How did Latin America's economic growth compare to other regions between 1820 and 1870?

Answer 42

Fell behind the United States and Western Europe but was similar to the European periphery and better than Asia and Africa ## Footnote Latin American countries had comparable starting points to other former colonies despite lower growth.

Question 43

What factors contributed to variations in economic performance among Latin American countries after independence?

Answer 43

Degree of political stability, institutional modernisation, geography, economic policies, external shocks, legacy of colonial institutions ## Footnote Access to the sea and transportation costs also influenced integration into the global economy.