TOPIC 14: NEOLIBERALISM IN LATIN AMERICA , 1.14 , 2.14 , 3.14 , …
TOPIC 14: NEOLIBERALISM IN LATIN AMERICA
1.- Latin America Stagnant
In the second half of the 20th, there were poverty, external debt, and social instability.
European and Asian countries were in front of those of Latin America.
During the military and constitutional regimes, there were economic problems.
2.- Debt crisis
Latin America depended on international commercial banking and government loans.
Mexico could not pay its debts and there was a crisis in 1982. There were other countries in similar positions.
It was known that the debt was unfair because it was created by illegal actions. Also, it was known that the debt was already paid with the interest charged.
3.- The Neoliberalism
That refers to free commerce.
With this trend, subsidies were eliminated, there was the privatization of state enterprises and the number of public employees was reduced.
Sometimes the IMF maintained economic stabilization but the rich and poor class were profoundly differentiated.
Neoliberalism caused layoffs of employees, an increase in the price of fuel, a decrease in the prices of export products, and the number of private companies.
Due to those facts, there were protests and social mobilization.
4.- Neoliberalism in Latin America
Latin American military dictatorships and civilian governments carried out privatization processes and complied with neoliberal rules thanks to the support of the IMF, the World Bank, and the U.S.A.