Showing papers in "Cepal Review in 1997"
TL;DR: In this paper, the authors take the view that the restructuring of industry in Mexico is taking place in two different territorial environments which, to some extent, have independent development paths: on the one hand, there is the territorial environment shaped in accordance with the logic of northern border industrialization, while on the other hand, the industries set up during the import substitution industrialization phase, concentrated in the metropolitan areas of Central Mexico.
Abstract: This article takes the view that the restructuring of industry in Mexico is taking place in two different territorial environments which, to some extent, have independent development paths: on the one hand, there is the territorial environment shaped in accordance with the logic of northern border industrialization, while on the other hand there is the territorial environment of the industries set up during the import substitution industrialization phase, concentrated in the metropolitan areas of Central Mexico. In the authors’ opinion, these arc parallel but different industrialization paths, with different processes and forms of social organization of production in their territories: consequently, in order to understand the true significance of the restructuring of production it is necessary to study the logic of the industrial sectors and that of the territory simultaneously, since the course of events with regard to industrial restructuring is strongly affected by regional and local dynamics.
30 citations
14 citations
TL;DR: A general feeling of uneasiness, in which all evils tend to be blamed on bad government and the imperfections of social life are seen as the direct consequence of political ineptitude, is expressed in this paper.
Abstract: Modernization brings with it a rapid process of differentiation which increases the dynamism of society but also aggravates the phenomena of disintegration and fragmentation. These opposing sides of the process give rise to uncertainty and a sense of defence-lessness. The protective aura of the State fades away, while at the same time the very notion of society becomes empty and unsubstantial. There is a general feeling of uneasiness, in which all evils tend to be blamed on “bad government” and the imperfections of social life are seen as the direct consequence of political ineptitude. However, the natural concern to tackle the (very obvious) problems of governance may prevent us from seeing the real underlying conditions.
10 citations
TL;DR: In this paper, the authors analyze the recent increase in the importance of indigenous peoples as political and social actors in the region, reviewing the changes that have taken place in the situation of the indigenous peoples, the relationship between the State and such peoples, forging of new identities, and cultural changes: questions that are all being reappraised in the light of what has become known as "the ethnic question".
Abstract: This article analyses the recent increase in the importance of indigenous peoples as political and social actors in the region, reviewing the changes that have taken place in the situation of the indigenous peoples, the relationship between the State and such peoples, the forging of new identities, and cultural changes: questions that are all being reappraised in the light of what has become known as “the ethnic question". The author highlights the existence of a number of leading threads which appear and reappear in the various types of indigenous movements.
9 citations
8 citations
TL;DR: In this paper, the authors proposed that the factors determining marginal forms of behaviour build up their effects in a cyclical manner throughout the different stages of individual lives and from generation to generation, and the explanation for these types of behaviour has been sought in the divergences between cultural goals, the structures of opportunities for attaining those goals, and shaping of individual capacities for taking advantage of them.
Abstract: Within Latin America, Uruguay stands out by its equalitarian income distribution, the solidity of its democratic institutions, and its level of social integration. Over the last decade, however, there have been signs of cracks in this desirable image which adversely affect the harmony of social relations. These cracks take the form of marginal behaviour: i.e., types of behaviour which are not governed by socially accepted patterns. In this study, the explanation for these types of behaviour has been sought in the divergences between cultural goals, the structures of opportunities for attaining those goals, and the shaping of individual capacities for taking advantage of them. A central premise of the approach adopted is that the factors determining marginal forms of behaviour build up their effects in a cyclical manner throughout the different stages of individual lives and from generation to generation.
7 citations
TL;DR: In this article, the authors analyzed the levels and evolution of social inequalities in Colombia over the last 25 years, describing the main recent trends in Colombian social development, comparing them with past periods, and contrasting them with those of other countries.
Abstract: This article analyses the levels and evolution of social inequalities in Colombia over the last 25 years, describing the main recent trends in Colombian social development, comparing them with past periods, and contrasting them with those of other countries. First of all, a recent estimate of income distribution and the rest of the social indicators is given. Next, trends in the distribution of monetary income over the period 1938-1993 are analysed, the impact of social expenditure on secondary income distribution is examined, and on this basis trends in the distribution of income effectively received by individuals are evaluated. The evolution of poverty and other indicators of well-being is then described and compared.
6 citations
TL;DR: The system of currency convertibility has shown that it is effective in overcoming inflation in Argentina, but its capacity for supporting a stable growth process and acting as a monetary and exchange-rate system which does not involve intervention and heavy costs on the part of the State is currently being questioned as discussed by the authors.
Abstract: The system of currency convertibility has shown that it is effective in overcoming inflation in Argentina, but its capacity for supporting a stable growth process and acting as a monetary and exchange-rate system which does not involve intervention and heavy costs on the part of the State is currently being questioned. The present article deals with this aspect on the basis of an analysis of the 1991-1995 period and identifies some key features of the functioning of the system: its reactions to movements of foreign capital; its interrelations with the domestic banking system; the extent to which it is capable of operating automatically without any need for a lender of last resort, as claimed in the theory on which it is based; and the degree to which the currency issued really has effective backing to ensure its convertibility.
5 citations
TL;DR: In this article, an inventory and assessment of 15 non-market valuation studies in Central American and Caribbean countries was made, most of which used the contingent valuation method to determine willingness to pay for drinking water or protected areas.
Abstract: An inventory and assessment was made of 15 non-market valuation studies in Central American and Caribbean countries. Most utilized the contingent valuation method to determine willingness to pay for drinking water or protected areas. The method used suffered from a reliance on open-ended bidding, information framing and contingent scenarios lacking detail, limited population samples, and possible cultural-strategic biases associated with surveying local residents. Problems observed with respect to the single travel cost method study reviewed were a reliance on poor quality census data rather than visitor survey data, and unrealistic assumptions regarding transportation cost estimates, single-destination visitors, and consumer surplus levels of international visitors.
5 citations
TL;DR: In this paper, the effect of the stabilization of fiscal expenditure and the anti-cyclical use of taxes as stabilization variables in the Chilean economy, through the calibration of a basic macroeconomic model adapted to the actual conditions of that economy, was studied.
Abstract: This article studies the effect of the stabilization of fiscal expenditure and the anti-cyclical use of taxes as stabilization variables in the Chilean economy, through the calibration of a basic macro-economic model adapted to the actual conditions of that economy. The results show that some 25% of the variability of economic growth could be eliminated by obviating fiscal cyclical impulses through constant growth of public investment and consumption and through anti-cyclical taxes. On the one hand, it is proposed that a system of stabilization of the growth of fiscal expenditure should be established, through a system of rules and degrees of flexibility subject to specific clauses.
5 citations
TL;DR: In this article, the authors analyse the complex process of generation and application of environmental policies in the countries of the region, beginning by examining the evolution of the corresponding structures of public institutions and making some recommendations aimed at promoting more novel and efficient ways of setting about new environmental policies and shaping a system of public environmental institutions which will help to generate such policies.
Abstract: In recent years the question of the environment has been increasingly prominent in studies and proposals on the development of the Latin American and Caribbean countries. The serious processes of ecological imbalance in the world, together with numerous disasters and the ongoing loss of natural resources, have given rise to increasing concern over these matters. To a greater or lesser extent, all the governments of the region have tried to strengthen their environmental policies through various legal, technical, institutional and economic measures. Much still needs to be done, however, to correct the existing deficits and ensure that the new measures put into effect are really efficient and effective. The problems behind the ineffectiveness observed with regard to environmental issues are much more complex than the level of political will or the degree of administrative efficiency of the environmental arrangements adopted. This article seeks to analyse the complex process of generation and application of environmental policies in the countries of the region, beginning by examining the evolution of the corresponding structures of public institutions and going on to make some recommendations aimed at promoting more novel and efficient ways of setting about new environmental policies and shaping a system of public environmental institutions which will help to generate such policies.
TL;DR: In this article, the main obligations arising from the World Trade Organization and their repercussions on the design of trade policy are analyzed, and the authors highlight the fact that, as the number of questions considered expands and an ever increasing number of policies are brought under international scrutiny, the delicate balance between trade policy and negotiations must be adjusted more and more exactly.
Abstract: This study looks at the main obligations arising from the World Trade Organization and their repercussions on the design of trade policy. First of all, the study analyses the content of the world trade system and the problems it raises, and highlights the fact that, as the number of questions considered expands and an ever-increasing number of policies are brought under international scrutiny, the delicate balance between trade policy and negotiations must be adjusted more and more exactly. It is pointed out that the commitments entered into within the context of the WTO indicate the direction but not the depth of trade reforms in Latin America. Closer analysis of the obligations arising from the WTO shows that they offer substantial leeway.
TL;DR: The fact that different studies seeking to measure poverty in a given country often give differing results, although they apparently use the same method and the same data sources, has long given rise to a feeling of confusion among both experts in the field and the public in general.
Abstract: The fact that different studies seeking to measure poverty in a given country often give differing results, although they apparently use the same method and the same data sources, has long given rise to a feeling of confusion among both experts in the field and the public in general. Such discrepancies (regarding the size of the phenomenon and the characteristics of households considered to be poor) reduce the credibility and technical reliability of these measurements, shed doubts on estimates of the level and evolution of poverty, and hinder international comparisons. This is why it is important to foster greater consensus among researchers regarding the criteria and procedures to be used, with a view to progressing towards a common pattern which will make the measurements more consistent and homogeneous and guarantee their effective comparability.
TL;DR: In this paper, the authors examined the conditions under which non-agricultural activities may help to improve rural employment and income in Central American countries, including Honduras and Costa Rica.
Abstract: Non-agricultural rural employment accounts for an increasing proportion of total rural employment in Latin America. Its potential for stimulating rural development has been noted, but it has also been analysed as a focal point of poverty. This article considers the magnitude and composition of this employment in some of the Central American countries and examines the conditions under which nonagricultural activities may help to improve rural employment and income.
TL;DR: In this paper, the authors analyzed the strategies applied by the Brazilian industrial groups during the period 1980-1993: that is to say, before the Real Plan was put into effect, and made a general analysis of the strategies of a sample of industrial groups, and in conclusion some aspects of the Brazilian groups are compared with those of "winning" business organizations.
Abstract: This article analyses the strategies applied by the Brazilian industrial groups during the period 1980-1993: that is to say, before the Real Plan was put into effect. After some introductory comments regarding the debate on economic groups, hypotheses are presented on the evolution of the Brazilian industrial groups in the 1980s and early 1990s; the main elements in the Brazilian economy which conditioned the restructuring strategies of the groups are identified, and these strategies are categorized on the basis of this analysis and of the hypotheses put forward in the introductory section. A general analysis is then made of the strategies of a sample of industrial groups, and in conclusion some aspects of the Brazilian groups are compared with those of "winning" business organizations (the Japanese Keiretsu and the South Korean Chaebol); and some theoretical considerations are put forward on the possibilities of expansion of the Brazilian groups in the light of their sectoral location.
TL;DR: In this paper, the authors argue that the generation dynamic competitive advantages in Latin America and the Caribbean cannot be assumed to result automatically from the achievement of the necessary macroeconomic stability and the incorporation of part of the system of production into some dynamic segments (or niches); of the international economy.
Abstract: The generation dynamic competitive advantages in Latin America and the Caribbean cannot be assumed to result automatically from the achievement of the necessary macroeconomic stability and the incorporation of part of the system of production into some dynamic segments (or niches); of the international economy. Recent empirical information on local economic development initiatives in the developed countries indicates that macroeconomic adjustment policies must be accompanied by other specific policies at the microeconomic and mesoeconomic levels. These policies must incorporate the various local public and private actors into the development strategy in order to ensure the introduction of organizational and technological innovations throughout the system of production and business, which is made up largely of small and medium-sized enterprises and microenterprises with few linkages to the globalized core of the world economy. It is therefore clear that it is necessary not only to promote endogenous development potential by giving due importance to the territorial dimension of technological policy and to small and medium-sized enterprises, but also to ensure that the production sectors have access to advanced services throughout the territorial area, to strengthen institutions and cooperation and complementation agreements in the area, and to include environmental sustainability in local development management.
TL;DR: In this article, the authors explore the process of the restructuring of production of a Chilean metal products and machinery company and the way it gradually modified its operations from the 1970s onwards, adapting them to new macroeconomic and mesoeconomic signals.
Abstract: Processes of adjustment and restructuring of the production sectors to a new system of macroeconomic incentives are slow, costly and more inefficient than conventional microeconomic theory would lead one to suppose. In this article, the authors explore the process of the restructuring of production of a Chilean metal products and machinery company and the way it gradually modified its operations from the 1970s onwards, adapting them to new macroeconomic and mesoeconomic signals. As is well known, in the last two decades the system off incentives and the regulatory framework for production activities in Chile have undergone profound changes, gradually moving --with advances but also setbacks-- towards an organizational model more open to external competition, more deregulated, and with less public sector participation in the field of production proper. In the case of the company studied here, in spite of the considerable length of time that the Chilean economy has been open to the exterior and the fact that the company has been notably successful in its global restructuring, the transition to international levels of productivity is still not complete and displays areas of fragmentation and weakness. Section I of the article describes the general background for the functioning of the Chilean economy in which the company's activities evolved; section II describes the evolution of the firm's manufacturing facilities, and the third and last section explores the links between microeconomic and macroeconomic aspects and sets forth some conclusions drawn from this study.
TL;DR: In this article, the authors analyze the effect of subsidies in the form of tax credits for goods exported outside Central America on the exports of five Central American countries, with special attention to the possibility that the subsidies granted in respect of goods exported to extra-regional rather than regional markets may induce exporters to give preference to extra regional markets.
Abstract: Ten years ago the member countries of the Central American Common Market (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua); began to abandon the "inward-oriented development" policy they had been applying for decades. They are now stimulating non-traditional exports by lowering tariff barriers, unifying exchange rates, and giving exporters access to intermediate and capital goods at international prices. Some governments have also granted direct subsidies in the form of tax credits for goods exported outside Central America. This article reviews these policies and analyses their effects on the exports of each of the five Central American countries, with special attention to the possibility that the subsidies granted in respect of goods exported outside the Central American Common Market may induce exporters to give preference to extra-regional rather than regional markets.
TL;DR: In this article, the authors make a walk-through in the virtual reality of budgetary and fiscal matters in order to identify the possible degrees of freedom to achieve a higher level of convergence between the public discourse on equity and the real content of public policies aimed at that goal.
Abstract: This article aims to make a walk-through in the virtual reality of budgetary and fiscal matters in order to identify the possible degrees of freedom to achieve a higher level of convergence between the public discourse on equity and the real content of public policies aimed at that goal. To this end, the author explores possible answers to four questions: what is the current meaning of the concept of equity; how much leeway is there in the field of taxation for expanding resources and improving vertical equity; what means are there for giving priority to the objective of equity in managing public expenditure; and how could greater dynamic consistency be ensured between growth and equity. He concludes that it would be possible to make considerable progress in terms of social equity in the fiscal field, but this would call for top-level political will, backed up by active public policies in a serious, sustained and consistent effort. In order for that political will to go beyond the levels of mere declarations or clientage, it must be directed towards society at large, clearly setting forth the priorities involved, and in order to avoid it being frustrated, it must be based on operational methods that combine social participation with the creative and judicious use of public policy instruments.
TL;DR: The difficulties encountered in trying to make reforms ensure the fulfillment of both economic and social functions are discussed in this paper, where the difficulties stem from the need to consider the reform of the pension system as a whole, where, parallel with the capitalization component, it is necessary to develop another pay-as-you-go component to finance the costs of the transition from one pension system to another, minimum pensions, and social welfare pensions.
Abstract: Pension system reforms seek to combine and reconcile both economic and social functions. On the basis of both conceptual aspects and the actual experience of Chile, this article illustrates the difficulties encountered in trying to make reforms ensure the fulfillment of both types of functions. These difficulties stem from two factors: i); the need to consider the reform of the pension system as a whole, where, parallel with the capitalization component, it is necessary to develop another pay-as-you-go component to finance the costs of the transition from one pension system to another, minimum pensions, and social welfare pensions; and ii); the need to distinguish between financial saving and real saving (or national saving in the national accounts sense); and to study the financial sector's capacity to intermediate financial saving towards real investment. The Chilean experience confirms this view. The fiscal resources needed to finance the cost of the transition and the other items of the pay-as-you-go component represent flows which exceed those coming from workers' contributions, thus affecting the size and composition of the net flows of savings generated by the reforms. Furthermore, the relatively incipient nature of the capital markets and the regulation needed to ensure protection of the workers' pension funds in an investment portfolio approach make it more difficult to turn this financial saving into real investment. In the final analysis, although both types of functions include objectives which are desirable from the point of view of public policies, the mere reform of pension systems to change them from predominantly pay-as-you-go systems to others with substantial capitalization components does not guarantee that such objectives will be achieved.
TL;DR: In this paper, the authors classify and analyze the efforts at structural change made in the Brazilian motor industry between 1990 and 1996, seeking to relate them with the economic policy measures which had most impact on the sector.
Abstract: This article aims to classify and analyze the efforts at structural change made in the Brazilian motor industry between 1990 and 1996, seeking to relate them with the economic policy measures which had most impact on the sector The study begins by examining the explosive increase in domestic demand for motor vehicles, its determining factors, and its main implications, especially the achievement of efficient scales of production and the initiation of a wave of investments which has been further intensified in the last three years It goes on to study the increase in the technological dynamism of the sector, which is partly the result of these new investments A series of changes relating to the new international linkages of the Brazilian motor industry are then analyzed, since as a result of greater trade openness there has been a significant increase in the coefficients of importation of parts and components or finished vehicles Finally, an analysis is also made of some aspects of the Motor Industry Regime, whose adoption has had repercussions on the external linkages of the motor industry not only in the short term, by establishing import barriers, but also in the long term, by bringing it home to the big firms in the sector that they must make investments to expand local production and maintain higher levels of competitiveness
TL;DR: The social and political viability of the measures adopted, which does not depend solely on their technical qualities, is often overlooked in these assessments, which is what might be called the "social" (or perhaps even the "psychosocial"); factor of the reforms as mentioned in this paper.
Abstract: Now that the neoliberal economic model, which is still in force as Latin America prepares to see out the milennium, has completed a number of years of application, it is becoming increasingly desirable to assess the experience gathered so far. Economists are busily engaged in this task by breaking down and analysing the various characteristics and components of the programmes applied in the different countries. An aspect which is often overlooked in these assessments, however, is the social and political viability of the measures adopted, which does not depend solely on their technical qualities. The acceptance of such measures by the various sectors of the population has come to be just as important as their technical merits, especially since the replacement of military regimes with democratic systems which make it necessary to take greater account of the will of the people. This is what might be called the "social" (or perhaps even the "psychosocial"); factor of the reforms. A better understanding of the variables affecting popular reactions to the economic policy measures applied would make it easier to assess their possibilities of success in advance. A store of experience from various countries is already available for this purpose. One of the most interesting cases is perhaps that deriving from the repeated application of the neoliberal model in Venezuela. The different reactions of that country's population to the two neoliberal-type programmes applied in 1989 and 1996 could well be due to the different evolution of the real values of the economy (growth of the product and employment);, despite the similarity of the macroeconomic imbalances which existed in both cases.
TL;DR: This article takes the view that when a new metro line or similar system is opened, many travellers who previously used the buses transfer to it, as do a few who previous used their cars.
Abstract: There is urban traffic congestion in most parts of the world, including Latin America. Among the measures aimed at solving this problem, many cities have built suburban railways or metros. However, these have had little or no effect, as is shown by studies which indicate that investments in the public transport system are incapable of solving this problem on their cars. This article takes the view that when a new metro line or similar system is opened, many travellers who previously used the buses transfer to it, as do a few who previously used their cars.
TL;DR: A theoretical and an empirical analysis of the new policies applied in Argentina since 1992 with regard to the treatment accorded to capital goods: exemption from import duties, with drawback facilities for domestic producers in respect of their local sales is presented in this article.
Abstract: This article makes both a theoretical and an empirical analysis of the new policies applied in Argentina since 1992 with regard to the treatment accorded to capital goods: exemption from import duties, with drawback facilities for domestic producers in respect of their local sales. The new system is evaluated through a detailed analysis of its effects on demand for capital goods (section II);; on the domestic supply of such goods (section III);; and on some macroeconomic variables such as the fiscal balance (section IV); and the external balance (section V);. Some aspects relating to the management and control of the new system are then dealt with (section VI);, the main results of an empirical analysis of its effects are outlined (section VII);, and finally a global appraisal is made of it (section VIII);. It is concluded that the new system regarding capital goods has had both favourable and unfavourable effects. Among the former are an increase in the investment rate and general productivity of the economy and a reduction in costs made possible by cheaper capital goods, while the unfavourable effects include the unsatisfactory evolution of the domestic supply of capital goods (except transport equipment);, the macroeconomic impact on the fiscal sector, the external sector and unemployment, and the higher management costs, both public and private, of the new system compared with the previous one.