Unit V: GLobalisation, Instiution bu Flashcards
What period does the analysis of Latin America’s economic development cover?
Approximately 1870 to 1929
What was the main driver of economic growth in Latin America during this period?
Export-led growth
What external factor significantly contributed to Latin America’s economic growth?
Increased demand from industrialized nations
What internal factors fueled economic growth in Latin America?
Institution-building and strengthening of nation-states
What types of products primarily drove Latin American exports during this period?
Agricultural and mining products
True or False: Latin America’s share in world trade consistently increased throughout the period.
False
What percentage of Latin America’s output was constituted by the domestic market?
Over 80 percent
What role did the expansion of railroads play in Latin America’s economy?
Connected regions and facilitated trade
What political trend was observed in many Latin American countries during this period?
Increased political stability, often under authoritarian governments
Fill in the blank: Immigration played a role in _______ markets and technology transfer.
labor
Which foreign nation initially dominated capital inflows into Latin America?
Great Britain
What significant event ended the period of export-led growth in Latin America?
The global financial crash of 1929
What term describes the reliance on specific commodities that implies an element of ‘luck’ in export capacity?
Commodity lottery
What was a key characteristic of the three groups of Latin American countries during this period?
Distinct economic performances and characteristics
What was the impact of large-scale immigration on countries like Argentina and Uruguay?
Significant population growth
What transformation occurred in land markets during this era?
Targeting indigenous lands and changes in land ownership
What is one of the main social indicators that showed disparities across Latin American countries?
Life expectancy
What was the role of the state in economic development during this period?
Protecting infant industries and developing banking systems
Fill in the blank: The early stages of _______ began to emerge in some Latin American countries.
industrialization
What was the impact of foreign investment patterns shifting from British to American dominance?
Different sectoral focuses
What type of economic policy was employed by some countries to support local industries?
High customs duties
What characterized the export-led growth process in Latin America?
Path-dependent nature of economic development
What was a limitation of human capital in Latin America during this period?
Relatively low levels compared to international standards
True or False: The economic expansion of this period was sustained and continuous.
False
What were ‘backward linkages’ in the context of Latin America’s export sector?
Development in other parts of the domestic economies stimulated by export growth
What were some forms of rural life in Latin America during this period?
Haciendas, small and medium-scale producers
How did the expansion of the agricultural frontier occur in many Latin American countries?
The expansion involved the appropriation of new lands, often through military campaigns against indigenous populations and the shifting of traditional crops to marginal areas for export crops.
This resulted in the displacement of indigenous communities and concentration of land ownership.
What evidence suggests that land markets in Argentina and Uruguay became more integrated during this period?
Evidence includes a significant increase in land prices across regions and the convergence of price differences following the expansion of transport networks like railways.
In what sectors did Latin American governments begin to play a more active role during this era?
Governments became more active in:
* Protecting infant industries in manufacturing
* Promoting national banking systems
* Investing in infrastructure development like railways and ports.
What were the primary weaknesses of industrial growth in Latin America between 1870 and 1929?
Primary weaknesses included:
* Vulnerability to fluctuations in international demand and prices
* Dependence on a limited number of natural resources
* Potential for boom-and-bust cycles.
Which group of Latin American countries saw the highest levels of per capita income during the export boom?
Group 3 (e.g., Argentina, Chile, Uruguay) achieved the highest levels of per capita income and exhibited strong export performance.
What were the consequences of high rates of intercontinental immigration in Argentina, Uruguay, and Cuba?
Consequences included:
* Population growth
* Expanded labour force
* Development of new skills and industries.
What general trend was observed regarding nation-state power in Latin America during this period?
The trend was towards the consolidation of centralized power, often led by strong, sometimes authoritarian figures.
What is meant by ‘backward linkages’ in the context of economic growth?
Backward linkages refer to the stimulus that the growth of one sector provides to other domestic industries through increased demand for inputs, services, and infrastructure.
What does the term ‘commodity lottery’ signify in the context of Latin American economies?
The ‘commodity lottery’ signifies that a country’s export success is largely determined by its natural resource endowments and fluctuating global demand, implying an element of luck.
What role did foreign capital play in Latin American economies from 1870 to 1929?
Foreign capital financed infrastructure projects like railroads and ports, with Great Britain being the dominant source until World War I.
Fill in the blank: The economic growth in Latin America between 1870 and 1913 was largely driven by the consolidation of _______ and integration into the world economy.
[nation-states]
What was a significant impact of the structure of land ownership in rural Latin America during this period?
The structure remained highly concentrated, with large landholders appropriating land often at the expense of indigenous communities.
What was one of the key social developments in Latin America during the export boom?
The growth of urban centers led to the emergence of a middle class and a working class increasingly engaged in social struggles.
True or False: By 1929, Latin America’s per capita GDP was equal to that of the world’s leading economies.
False
What were some limitations of the industrial growth observed in Mexico under Porfirio Díaz?
Limitations included that industrial growth did not fundamentally alter reliance on primary exports and was linked to the domestic market.
What is the definition of ‘hacienda’ in the context of Latin American agriculture?
A large agricultural estate characterized by hierarchical social relations and varying forms of labour, from tenant farming to wage labour.
What does ‘financial deepening’ refer to?
The expansion and sophistication of a country’s financial sector, including the growth of banking, credit markets, and other financial institutions.
What was the significance of the terms of trade for Latin American countries?
The terms of trade refer to the ratio of export prices to import prices, with improvements allowing countries to buy more imports for a given quantity of exports.
What is an ‘infant industry’?
A new domestic industry that is still developing and may require protection from foreign competition in its early stages.
Fill in the blank: The _______ system was a form of tenant farming prevalent in Chile.
[inquilinato]
What were the two main interconnected sets of factors driving economic growth in Latin America between 1870 and 1913?
- Consolidation of nation-states
- Increased integration into the world economy.
What was the primary characteristic of rural life and labor relations in Latin America during the export boom?
A gradual shift towards monetisation of contracts and payments, with a movement from tenant farming to wage labor.
