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731. Market Versus State: Postcrisis Economics in Latin America

Author:
Alejandro Foxley
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The global financial crisis has reignited the fierce debate about the roles of the market and the state in modern economies. Latin America, in particular, revisits this debate every time it suffers an external shock. While some blame unregulated markets, others fault states' inability to design institutions or implement policies capable of neutralizing the negative impact of these shocks on output, employment, and social welfare.
Topic:
Economics, International Trade and Finance, and Financial Crisis
Political Geography:
Latin America

732. Minimum Wages, Globalization, and Poverty in Honduras

Author:
T.H. Gindling and Katherine Terrell
Publication Date:
03-2008
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
To be competitive in the global economy, some argue that Latin American countries need to reduce or eliminate labour market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the other hand, minimum wage increases can have a direct positive impact on family income and may therefore help to reduce poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find the net effect of minimum wage increases in Honduras is the reduction of extreme poverty, with an elasticity of -0.18, and all poverty, with an elasticity of -0.10 (using the national poverty lines). These results are driven entirely by the effect on workers in large private sector firms, where minimum wage legislation is enforced. Increases in the minimum do not affect the incidence of poverty among workers in sectors where minimum wages are not enforced (small firms) or do not apply (self-employed and public sector). Hence, we show that minimum wages can be used as a poverty reduction tool in the formal sector. However, we do not endorse minimum wages as the best tool as we have not carried out a complete cost-benefit analysis of this policy vis-à-vis others.
Topic:
Poverty
Political Geography:
Latin America, Central America, and Honduras

733. Beyond the RMA: Survival Strategies for Small Defense Economies

Author:
Ron Matthews and Curie Maharani
Publication Date:
06-2008
Content Type:
Journal Article
Journal:
Connections
Institution:
Partnership for Peace Consortium of Defense Academies and Security Studies Institutes
Abstract:
Life was straightforward during the Cold War. There were the big guys in the bi-polar strategic stand-off—the United States and the Soviet Union—and there were the little guys: the Eastern European countries, such as Poland, Hungary, and Yugoslavia; Chile in Latin America; Spain in Southern Europe; Sweden in Scandinavia; Israel in the Middle East; and Singapore in the Far East. All these countries, big or small, capitalist or communist, possessed comprehensive and diversified defense industrial bases. However, times have changed, and in some senses they have changed dramatically. More than anything else, economics does not favor small countries. Previously, Cold War doctrine was premised on mass formations of artillery, main battle groups of tanks and combat aircraft located on the Central European front. In the twenty-first century, these formations have disappeared. Militaries have been transformed by the need to respond to new, emerging, asymmetrical threats arising anywhere across the globe, a shift that is captured under the umbrella term of the “Revolution in Military Affairs” (RMA). Contemporary doctrine focuses on high-intensity warfare, characterized by sophisticated defense systems, such as telemetry and cruise missiles, fiber optic technologies, sensors, modern telecommunication systems, “stealth” coatings of modern weapon platforms, light-weight composite materials, and the miniaturization of technologies in, for instance, unmanned aerial vehicles (UAVs).
Political Geography:
United States, Middle East, Israel, Poland, Soviet Union, Yugoslavia, Hungary, Latin America, Spain, Sweden, Singapore, Chile, and Scandinavia

734. Colombia's Crossroads: The FARC and the Future of the Hostages

Author:
Virginia M. Bouvier
Publication Date:
06-2008
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
This USIPeace Briefing discusses the condition of the Colombian Revolutionary Armed Forces (FARC), their hostages and the potential direction of this situation. The briefing stresses insights that key figures in the issue raised in recent visits to Washington, DC.
Topic:
Terrorism
Political Geography:
United States, Colombia, South America, Latin America, and Central America

735. Democracy, Parties and Political Finance in Latin America

Author:
Eduardo Posada-Carbó
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This paper tries to link the topic of political finance to the wider question of democracy and political parties in Latin America. By doing so, it aims at providing a conceptual framework within which the subject of political finance could acquire some centrality, hitherto missing in both the academic literature and current debates. The first section examines the extent to which, in spite of renewed democratic developments in Latin America during the last two decades, dominant views of democracy in the region continue to neglect and even undermine the significance of political parties and elections in the workings of democracy. This is followed by a discussion of how prevalent concepts of democracy can impinge on the course of political reform. Admittedly any attempt at establishing such a link is fraught with difficulties, and I only venture a few suggestions by looking at the debate among opinion makers and legislators regarding the prospects for political reform in a single country: Colombia. In the last section, I discuss how public funding—a trend visible in most Latin American countries, apparently adopted to fight corruption and to guarantee equality—may be affecting political parties and party systems in the region. A central, underlying assumption of this paper is that ideas are paramount in shaping the course of policy making, thus conditioning any process of political reform.
Topic:
Government and Politics
Political Geography:
Colombia and Latin America

736. Democracy and Populism in Latin America

Author:
Ignacio Walker
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
There appears to be an inherent tension between populism, old and new, and the institutions of representative democracy. This paper focuses on those intrinsic contradictions through a systematic analysis of old and new populism and of its relationship with political democracy. At the core of those tensions is the question of personalization versus institutionalization of power. “Old populism,” as I term it, appears as the most salient and paradigmatic Latin American response to the crisis of oligarchic rule in the 1930s and 1940s. The continuing process of “desoligarquización” may help us to explain the emergence of “neopopulism.” In contrast to old populism, which emerged in the middle of an authoritarian wave, neopopulism has emerged in the middle of a democratic wave, and thus out of the dynamics of electoral democracy. No doubt neopopulist leaders have a formal democratic legitimacy. However, neopopulist regimes appeal to the superior quality of the leader, who appears as the redeemer and the embodiment of the people and the nation. Populism is not the real problem in Latin America; rather, the real problem is the factors that cause populism, namely, the persistence of poverty and inequality, and the decomposition of traditional political institutions and elites in the region. Finally, I shall argue that Hugo Chávez is not Latin America, and Latin America is not Chávez. He may be the most visible and strident political figure, but he is not the most representative one. In fact, he is the exception and not the rule.
Topic:
Civil Society and Government
Political Geography:
Latin America

737. Institutions and Politicians: An Analysis of the Factors that Determine Presidential Legislative Success

Author:
Manuel Alcántara and Mercedes García Montero
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
This study questions the level of influence that different Latin American presidents have on the making of laws. In order to delimit this analysis, it is necessary to understand the factors that affect decision making in Latin American parliaments. Many of the theoretical approaches that tackle the study of decision making within legislative bodies maintain that the laws that arise from this decisional process, in addition to depending on the institutional organization of the parliament itself, depends on the political actors taking part, on their strategies when adapting to this institutional framework, and on their interests as well as on their collective and individual preferences.
Topic:
Government
Political Geography:
Latin America

738. The Durability of Constitutions in Changing Environments: Explaining Constitutional Replacements in Latin America

Author:
Gabriel L. Negretto
Publication Date:
08-2008
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
Given the costs entailed in replacing a constitution, most works on political institutions assume that constitutions are a stable set of rules that become self-enforcing over time. The durability of constitutions is, however, subject to variation. I argue that this variation depends on specific institutions and on the relative stability of the political environment that the constitution is supposed to regulate. Using a duration analysis of constitutions in eighteen Latin American countries between 1946 and 2000, this paper finds that while the lifespan of constitutions is negatively affected by political and social instability, institutions that diffuse power and make possible the flexible adaptation of the constitution to changing circumstances decrease the risk of constitutional replacement. It also shows that for the Latin American region, the durability of constitutions tends to decrease rather than increase over time.
Topic:
Government and Politics
Political Geography:
Latin America

739. U.S.-Latin America Relations: A New Direction for a New Reality

Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
This Task Force report takes stock of the current situation in Latin America and the main challenges and opportunities for U.S.-Latin America relations. Latin America has benefited greatly in recent years from democratic opening, stable economic policies, and increasing growth. Many countries are taking advantage of these developments to consolidate democratic institutions, broaden economic opportunities, and better serve their citizens. Yet Latin American nations face daunting challenges as they integrate into global markets and work to strengthen historically weak state institutions. These challenges increasingly matter for the United States, as deepening economic and social ties link U.S. well-being to the region's stability and development.
Topic:
Foreign Policy, Diplomacy, Economics, and Poverty
Political Geography:
United States, South America, Latin America, and Caribbean

740. Morning in Latin America

Author:
Jorge G. Castañeda
Publication Date:
09-2008
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
The key to a successful foreign policy in Latin America will be focusing on four critical issues -- Cuba, immigration, trade, and the 'two lefts'.
Political Geography:
Cuba and Latin America