Unit V: Globalisatioin Latin America before 1940 (Bertola)' Flashcards
What period does the text examine regarding the impact of globalization on Latin America?
1820 to 1940
This time frame highlights key economic developments and trends in the region.
What was the growth trend of Latin American economies between the 1860s and 1910s?
Fairly fast growth
This growth was fueled by export-led growth and facilitated by transport revolutions.
How did Latin America’s per capita income relative to Great Britain change from 1820 to 1940?
Increased from 38% to 42%
Despite this increase, Latin America’s position relative to the rapidly growing European core declined.
What role did the transport revolution play in Latin America’s economic integration?
Integrated Latin America into world markets
Innovations like steamships, railways, and refrigeration reduced transport costs.
What factors contributed to varying levels of economic success in Latin America?
Diverse resource endowments, export specialisations, and labour markets
These factors influenced economic trajectories across the region.
What was the impact of independence and conflicts on Latin American economies?
Led to deglobalisation and high tariffs
Newly formed nations faced fiscal constraints, prompting high tariffs for revenue.
What was the trend in Latin America’s terms of trade from the 1820s to the 1890s?
Significant improvement
This was followed by a period of deterioration after the 1890s.
What were the primary motivations behind high tariffs in Latin America during the belle époque?
Revenue needs, strategic responses to tariffs, redistributive goals
These motivations were more significant than fears of deindustrialisation.
Did significant industrialisation occur in Latin America before the 1930s?
No
Factors like small domestic markets and low levels of human capital hindered industrial growth.
How did globalization affect income inequality in Latin America before World War I?
Led to rising inequality
This was characterized by falling wage-rental ratios.
What key areas require further research according to the authors?
Relationship between export-led growth and industrialisation, role of policy changes, consequences of balkanisation, motivations behind tariff policies, historical roots of inequality
These areas can shed light on the complexities of Latin American economic development.
What does the term ‘balkanisation’ refer to in the context of Latin America?
Fragmentation into numerous small republics
This fragmentation hindered economic integration and limited manufacturing opportunities.
What evidence challenges the traditional narrative of Latin American protectionism?
High tariffs existed before the Great Depression
This suggests that protectionism was driven by long-standing factors rather than solely a reaction to economic crises.
What was the primary focus of Latin American economies during the belle époque?
Export of primary products
This focus raised questions about its impact on industrial development.
What statistical data supports the argument of declining transport costs in Latin America?
Real freight rate indexes from 1741 to 1913
This data illustrates the impact of transport innovations on trade.
What trend was observed in the wage/rental ratio in Argentina and Uruguay before World War I?
Declining wage/rental ratio
This trend indicated rising inequality in these economies.
What was the impact of population growth on different regions in Latin America from 1870 to 1930?
Shift from highlands to lowlands, particularly the Atlantic coast
This shift was driven by globalization and booming export sectors.
What does the term ‘tariff-growth paradox’ refer to?
High tariffs were associated with faster growth in the European core, but not in Latin America
This finding suggests that high tariffs didn’t lead to significant industrial growth in the periphery.
What were the implications of the historical roots of inequality in Latin America?
Understanding distributional consequences of globalization
This knowledge is vital for contemporary debates on inequality.
What is balkanisation in the context of Latin America?
The fragmentation of Latin America into numerous small republics following independence
What are the negative consequences of balkanisation?
Lost economies of scale, limited opportunities for specialisation in manufacturing, hindered economic integration
What period is referred to as the belle époque in Latin America?
The period of economic prosperity before the inward-looking industrialisation
How might modern regional unification schemes affect Latin America?
They could help reverse the historical disadvantages caused by fragmentation
What impact did globalisation have on inequality in Latin America?
Globalisation significantly impacted inequality trends, with rising inequality during the first globalisation boom and falling inequality during the interwar years
