Showing papers in "Cepal Review in 1998"
TL;DR: In this article, the authors argue that the rapid development of Latin America and the Caribbean will depend on how fast it learns to industrialize and process its natural resources and to develop the necessary suppliers of inputs, engineering services and equipment for this.
Abstract: This article contends that the rapid development of Latin America and the Caribbean - a region rich in natural resources- will depend on how fast it learns to industrialize and process its natural resources and to develop the necessary suppliers of inputs, engineering services and equipment for this. Consequently, this will not be a form of development based on the mere extraction of natural resources, as at present, but rather one based on the processing of such resources and the development of the activities that naturally tend to spring up and concentrate around this base (production complexes or clusters).
37 citations
TL;DR: The region of the world with the highest levels of inequality of income distribution has been identified as the region with high levels of social inequality in the developing world as mentioned in this paper, where the prevailing levels of poverty are higher in Latin America than those typical of other parts of the developed world.
Abstract: Great social inequality has long been a frustrating feature of Latin American economic development. Not in vain has Latin America been described as the region of the world with the highest levels of inequality of income distribution. Although the prevailing levels of poverty are lower than those typical of other parts of the developing world, they are still extremely high and, taking the region as a whole, are higher now than they were before the debt crisis.
30 citations
30 citations
TL;DR: The ejido was originally organized as an institution with the multiple aims of achieving political control over the peasantry, representing peasants in their relations with the State, and assisting production by smallholders as mentioned in this paper.
Abstract: As a product of the Mexican revolution, the ejido was originally organized as an institution with the multiple aims of achieving political control over the peasantry, representing peasants in their relations with the State, and assisting production by smallholders. These multiple objectives, which were initially consistent and supported a successful phase of growth and improved welfare, became increasingly contradictory, precipitating a major crisis in both production and rural welfare.
25 citations
TL;DR: In this article, the authors identify those institutions which might matter the most with respect to economic performance, and provide a rationale as to why they might matter, and confront that rationale with some systematic empirical evidence.
Abstract: This paper attempts to provide a sounder link between institutions and economic growth. It does so by i) identifying those institutions which might matter the most with respect to economic performance, ii) providing a rationale as to why they might matter, and iii) confronting that rationale with some systematic empirical evidence. We postulate that the central and common characteristic of relevant institutions is that they give agents a voice, a stake in the system.
25 citations
22 citations
TL;DR: Although the governments of the region have increased their spending on health and education, the results have been unsatisfactory as discussed by the authors, and expenditure on these services has traditionally been considered as a transfer rather than an investment.
Abstract: Although the governments of the region have increased their spending on health and education, the results have been unsatisfactory. Expenditure on these services has traditionally been considered as a transfer rather than an investment. The accumulation of human capital has been relatively slow, with negative effects on economic growth, and it has been distributed unevenly among the different income groups, thereby further increasing inequality.
17 citations
TL;DR: In this article, the European environment and cleaner technology industries are reviewed in order to establish their competitiveness and the shift between the two different approaches to environmental management: amelioration by environment industries and prevention by cleaner process and production technologies.
Abstract: The environment industry, which includes a wide range of products and services relating to the monitoring, treatment, control and management of industrial and domestic pollution, has grown rapidly during the 1980s and 1990s in response to environmental regulations. Due to the relatively early application of these regulations in the United States, Europe and Japan, these areas have become competitive producers and exporters of environmental products and services. As the industrial sector has developed, environmental awareness has been raised and competition and international trade in the environment industry has expanded. There is now a clear North/South dimension to international patterns of development of the industry and its trade. Whilst environment industries were originally established to deal with waste reduction and disposal strategies, there has also been a drive towards cleaner production. The European environment and cleaner technology industries are reviewed in order to establish their competitiveness and the shift between the two different approaches to environmental management: amelioration by environment industries and prevention by cleaner process and production technologies. Latin American provides the counterexample in terms of the experience of the environment industry and cleaner production in the South. The nature of the expansion of the industrial environmental management sector is questioned, particularly as regards the composition of the sector and the way it is interpreted in different countries. The paper suggests that the environment industry and cleaner technologies should be understood as industries rather than as unquestionably "environmentally positive" sets of products and services. It also addresses the extent to which these industries reveal an information and technology gap in environmental management. This gap may, on the one hand, assist environmental managers in the South, but on the other hand it may lead to a condition of environmental management dependence.
17 citations
TL;DR: In this paper, the authors presented the results of an analysis of the long-term factors affecting income distribution in five countries of the region (Argentina, Brazil, Chile, Colombia and Mexico) on the basis of household surveys made in those countries between 1979 and 1992.
Abstract: This article summarizes the results of an analysis of the long-term factors affecting income distribution in five countries of the region (Argentina, Brazil, Chile, Colombia and Mexico);, on the basis of household surveys made in those countries between 1979 and 1992. After a brief introduction (section I);, the article describes the methodology applied (section II); and then details the main findings (section III);. These include in particular the lower labour remuneration received by the first income deciles, associated among other things with inequalities in the educational levels attained. It is also observed that those deciles have below-average employment rates and above-average rates of inactivity. This latter phenomenon appears to be connected with household composition: the first deciles register a relatively greater presence of minors in the household, so that the burden of looking after children is greater and the cost of participating in the labour market is higher, thus leading to lower participation in it and reducing income generation. The article concludes with some suggestions for a redistribution policy (section IV);. Such a policy should seek to advance simultaneously in at least four fields: generation of productive employment, improvement of the income of the poorest households, lowering of the barriers hindering such households' access to the labour market and, finally, aspects related with population dynamics.
12 citations
Abstract: This article aims to describe and analyse the formulation, implementation and results of the macroeconomic policy carried out by the Central Bank of Chile in the first half of the 1990s. Section I explains the importance of the macroeconomic balances from the standpoint of the Central Bank of Chile. Section II describes the Central Bank's objectives and its interpretation of the achievement of domestic and external balances. Section III summarizes the institutional, structural and conjunctural features which make the Chilean experience a special case. Section IV sets out the criteria adopted by the Bank in formulating and implementing its macroeconomic policy. Section V describes and explains the essential features of the monetary, exchange-rate, international reserves and capital account openness policies applied during the period. Finally, section VI describes the most important results of the above policies and sums up the main conclusions of this study.
10 citations
TL;DR: In this article, the authors summarize the results of some studies on the structure and dynamics of big domestically owned industrial companies and groups in five Latin American countries (Argentina, Brazil, Chile, Colombia and Mexico) and present supplementary elements for placing them in an overall perspective.
Abstract: This article seeks to summarize the results of some studies on the structure and dynamics of the big domestically owned industrial companies and groups in five Latin American countries (Argentina, Brazil, Chile, Colombia and Mexico) and presents supplementary elements for placing them in an overall perspective. The studies include individual analyses of 46 leading companies (in Brazil, Chile and Colombia) and 15 economic groups with an industrial base (in Brazil and Mexico), together with aggregated studies of such groups in Argentina, Brazil and Mexico.
TL;DR: In this article, public military expenditure (PME) has been analysed very little in the region, mainly for political reasons, which have also limited access to the relevant information, and it is beginning to be the subject of economic analysis both by governments and by multilateral bodies, especially with regard to its appropriate level (how much is enough?), its opportunity cost (what are its direct and indirect economic impacts), and its cost-effectiveness as a system of acquiring arms (what is its effect per monetary unit?).
Abstract: Public military expenditure (PME) has been analysed very little in the region, mainly for political reasons, which have also limited access to the relevant information. Because of various events, however, it is beginning to be the subject of economic analysis both by governments and by multilateral bodies, especially with regard to its appropriate level (how much is enough?), its opportunity cost (what are its direct and indirect economic impacts?), and its cost-effectiveness as a system of acquiring arms (what is its effect per monetary unit?).
TL;DR: In this article, the authors analyzed the various internationalization paths and strategies of Mexican firms and concluded that 60% of the biggest non-financial groups in Mexico carry on at least two types of activities in transnational markets.
Abstract: Almost 60% of the biggest non-financial groups in Mexico carry on at least two types of activities in transnational markets. This article describes and analyses the various internationalization paths and strategies of Mexican firms. This drive for internationalization is taking place against the background of an open export-oriented economy and growing integration with the United States and Canada. There are various national and international factors, as well as others specific to the firms themselves, which influence the strategies chosen and their results. This article consists of an introduction (section I);, followed by six sections analysing the various paths followed by Mexican firms in order to become "global players". Section II identifies the firms which have set up subsidiaries in developed countries. Section III reviews the firms which have resorted to strategic alliances that could convert them into transnational corporations, and some outstanding examples of this are cited. Section IV describes the presence of Mexican firms on the international securities markets and the interaction that this involves with world financial institutions. Section V looks at the strategies followed by some Mexican firms in order to establish global marketing networks. Section VI examines the rapid expansion of the solutions and strategies applied by firms to gain a world-level position, and finally section VII offers some conclusions evaluating the paths and preferences of Mexican firms seeking to become transnationals, the obstacles they have had to overcome, and the consequences of their international activities.
TL;DR: In this paper, the relation between the 1992 Dublin Principles, integrated water planning, and water law is analyzed and a set of alternatives and experiences which may be of use to readers desiring information on institutional aspects of water management is provided.
Abstract: This article analyses the relation between the 1992 Dublin Principles, integrated water planning, and water law. The Dublin Principles were an attempt to concisely state the main issues and purpose of water management in the following terms: fresh water is a finite and vulnerable resource, essential to sustain life, development and the environment; water development and management should be based on a participatory approach, involving users, planners and policy makers at all levels; women play a central part in the provision, management, and safeguarding of water; and water has an economic value in all its competing uses and should be recognized as an economic good. The article does not seek to endorse any single given model or solution, but to provide a set of alternatives and experiences which may be of use to readers desiring information on institutional aspects of water management. Globally, water law provides examples of systemic approaches to water resources which include, more or less comprehensively, principles and norms relating to integrated water management and planning. However, the forms of approach and degrees of development differ. Among the main differences are those relating to the ethical aspects of integrated water management, the capabilities of water management agencies, the generally scanty level of public participation, information, water rights and planning, water pricing, and the limits of planning.
TL;DR: In this article, the authors analyze the recent establishment of quasi-markets in the field of public health in Costa Rica through the internal separation within the Costa Rican Social Security Fund of the functions of revenue collection, financing, purchasing and provision of services.
Abstract: This article analyses the recent establishment of quasi-markets in the field of public health in Costa Rica through the internal separation within the Costa Rican Social Security Fund of the functions of revenue collection, financing, purchasing and provision of services; the application of a new financing model; and the introduction of management contracts with hospitals and health areas as a key instrument for allocating and transferring resources in accordance with performance and fulfillment of goals.
TL;DR: In this paper, the authors examine the issues facing the countries of the Association of South East Asian Nations (ASEAN) and other developing countries of Asia in their efforts to comply with the World Trade Organization's Trade-Related Investment Measures (TRIMS) by the year 2000.
Abstract: International experience shows that cost-free replication and adoption of industrial best practices on a universal basis is a misconception. Rather, it is a matter of a progressive and reciprocal adaptation between external and local practices in which learning costs and times are an essential factor. The potential for convergence of policies, practices and institutions triggered by globalization appears to be greater at the macroeconomic than at the microeconomic level. This article first examines such issues in a general way and then focuses on the dilemmas facing the countries of the Association of South East Asian Nations (ASEAN) and other developing countries of Asia in their efforts to comply with the World Trade Organization’s Trade-Related Investment Measures (TRIMS) by the year 2000.
TL;DR: In this article, the authors argue that private sector involvement in the provision of these services offers potentially significant efficiency gains, but it will not, in itself, guarantee lasting welfare improvement unless these services are provided in a competitive market.
Abstract: Ever since the 1970s, the governm ents of the region have been transferring public com panies and other State institutions to the private sector in one m anner or another. Privatization has now spread to all sectors of the economy, including drinking water supply and sanitation services. Private sector involvement in the provision of these services offers potentially significant efficiency gains, but it will not, in itself, guarantee lasting welfare improvement unless these services are provided in a competitive market.
TL;DR: In this article, the authors analyzed the economic rationale of Brazil's tariff policy during the first two years of the Plano Real (1994-1994) and made a study of the changes made in import duties for all the products traded.
Abstract: This article analyses the economic rationale of Brazil's tariff policy during the first two years of the Plano Real. To this end, a study is made of the changes made in import duties for all the products traded. The tariff reform process in Brazil was begun in 1988, after the old Tariff Act had been in effect for thirty years, and represented a marked intensification in the process of trade openness, with the definition of a schedule of gradually decreasing tariffs which was further speeded up as from 1990. The Plano Real began in July 1994 and had many effects on import policy. The trade liberalization process reached its height in the first quarter of 1995 in terms of the average level of tariffs and their degree of dispersion. Since then there have been several episodes of tariff increases, differentiated by sectors, which have increased the degree of dispersion of the tariff structure. If two sectors with special treatment (petroleum and motor vehicles); are excluded, a direct relation may be observed between the value of imports and the nominal tariff level, with pronounced variations over the period studied. At the same time, the fact that for some sectors the tariff rate weighted by the value of imports was below the average rate for a number of months indicates that there are grounds for reviewing tariff levels in some cases. The article concludes with some observations on the performance of import policy.
TL;DR: This paper analyzed the experiences of a group of Latin American and Caribbean countries with high inflows of external capital in 1992-1996 and places them within the context of the capital movements which have taken place in the region since 1977.
Abstract: This article analyses the experiences of a group of Latin American and Caribbean countries with high inflows of external capital in 1992-1996 and places them within the context of the capital movements which have taken place in the region since 1977. Over the last two decades, capital flows to the region have been marked by their great variability: periods of high inflows of capital have alternated with periods of low inflows. In the three-year period 1992-1994, there was a heavy inflow of capital which was concentrated in a few countries, was more volatile because its composition changed in the direction of portfolio investments, and continued to be high in 1995-1996 in some countries.
TL;DR: In this article, the main elements of the modem theory of distributive justice, covering the ethical and economic dimensions of inequality, are reviewed and the main components of the modality are discussed.
Abstract: After more than a decade of economic reform and structural adjustment in the developing countries, there is increased recognition that economic growth and social equity must go hand in hand This article starts by asking what is meant by “social equity" It notes that reduction of poverty and improvement of income distribution are two perfectly complementary policy objectives, since less inequality can help both to reduce poverty and to speed up economic growth It reviews the main elements of the modem theory of distributive justice, covering the ethical and economic dimensions of inequality
TL;DR: In this article, the authors analyse the relation between the competitiveness of an economy and the labour regulations in force in it and argue that economic theory is by no means conclusive regarding the impact of labour regulations on competitiveness, since different schools of thought maintain opposing positions in many respects.
Abstract: This article analyses the relations between the competitiveness of an economy and the labour regulations in force in it. It is argued that economic theory is by no means conclusive regarding the impact of labour regulations on competitiveness, since different schools of thought maintain opposing positions in many respects. Moreover, empirical research has shown that the evidence put forward with respect to these assumed linkages is not very relevant. Various policy consequences follow from this: countries have various strategies open to them and greater leeway that is usually suggested, since many policies designed to improve equity do not necessarily involve any restrictions on competitiveness. A country can therefore choose the desired level of social protection. The improvement of competitiveness becomes, at least partly, a matter of income distribution. The most conventional formula proposes the reduction of workers' quality of life for a period whose duration is difficult to forecast, with the aim of providing enterprises with certain initial conditions which will allow them to make up for differences of productivity. This is not the only formula, however, nor is it the most equitable or effective. In order to generate those same conditions, it is possible to design income redistribution schemes which make investment for international competitiveness attractive, without resorting to further erosion of the wages of those who were already the most seriously affected during the last years of application of the import substitution models. The analysis made suggests that there is ample leeway for choosing between various combinations of equity and efficiency, and their selection depends on the power relations of the various social actors and the structure of the State.
TL;DR: In this article, the importance of quality issues in national strategies for increased productivity and competitiveness in Latin America is demonstrated, and the application of quality management techniques is therefore considered to make a positive contribution to the competitive performance of countries, economic sectors and individual organizations.
Abstract: Hie author aims to demonstrate the importance of quality issues in national strategies for increased productivity and competitiveness in Latin America. Quality is an important factor in today’s increasingly globalized and liberalized markets, and the application of quality management techniques is therefore considered to make a positive contribution to the competitive performance of countries, economic sectors and individual organizations. Since competitiveness contributes to sustainable development, the widespread diffusion and implementation of quality management seems desirable from a national point of view.
TL;DR: In this paper, the authors look at macroeconomic trends in Paraguay since 1989, a critical date, because it marks the return to democracy and a move towards liberalization of the economy, and the stabilization process embarked upon at that time resulted in favorable evolution of the monetary variables, but not of investment or of growth of the product.
Abstract: This article looks at macroeconomic trends in Paraguay since 1989: a critical date, because it marks the return to democracy and a move towards liberalization of the economy. The stabilization process embarked upon at that time resulted in favourable evolution of the monetary variables, but not of investment or of growth of the product. The combination of heavy inflows of capital and an excessive increase in aggregate demand gave rise to a growing external imbalance reflected in a domestic consumption bubble.
TL;DR: In this paper, the degree of economic inequality is taken into account in the determination of countries' competitiveness, and the relative levels of productivity of countries depend in a positive manner on the allocation of investments.
Abstract: Is the degree of competitiveness of countries independent of their degree of inequality? Is competitiveness only a question of microeconomic and sectoral efficiency, of the real exchange rate, or is it also a social question? So far, the specialized literature has ignored the problem of equity in the determination of countries' competitiveness. It has then been unable to provide a full explanation of the competitiveness actually observed, however. In this article, equity is incorporated into the production function and also into investors' decisions in a world of perfect mobility of capital. The predictions of the proposed theoretical system are generally consistent with the data observed in the world economy. In particular, Latin American displays the highest degree of inequality of all the regions of the world, yet its share of foreign direct investment flows is low, and so is its share of world trade (its competitiveness);. The theory presented here and the data assembled suggest that the relative levels of productivity of countries depend in a positive manner on the allocation of investments, and this allocation in turn depends, likewise in a positive manner, on the degree of equity prevailing in the countries. The competitiveness of a country therefore depends, among other factors, on its degree of economic inequality. Societies compete in the capital market, seeking to attract private investment in order to make themselves competitive in the goods market, and this is influenced, among other factors, by their current degree of equity.