Latin America's Political Economy of the Possible
Beyond Good Revolutionaries and Free-Marketeers
272 pp., 6 x 9 in, 30 illus.
- Published: September 28, 2007
- Publisher: The MIT Press
- Published: March 17, 2006
- Publisher: The MIT Press
The political and economic transformation now emerging in Latin America, as some countries eschew rigid ideologies and adopt a more pragmatic combination of neoclassical orthodoxies and progressive social policies.
Neither socialism nor free-market neoliberalism has been a very helpful model for Latin America, writes Javier Santiso in this witty and literate reading of that region's economic and political condition. Latin America must move beyond utopian schemes and rigid ideologies invented in other hemispheres and acknowledge its own social realities of inequality and poverty. And today some countries—notably Chile and Brazil, but also Mexico and Colombia—are doing just that: abandoning the economic "magic realism" that plots miraculous but impossible solutions and forging instead a pragmatic path of gradual reform. Many Latin American leaders are adopting an approach combining monetary and fiscal orthodoxies with progressive social policies. This, says Santiso, is "the silent arrival of the political economy of the possible," which offers hope to a region exhausted by economic reform programs entailing macroeconomic shocks and countershocks.
Santiso describes the creation in Chile and Brazil of institutions and policies that are connected to social realities rather than to theories found in economics textbooks. Mexico too has created its own fiscal and monetary policies and institutions, and it has the additional benefit of being a party to NAFTA. Santiso outlines the development strategies unfolding in Latin America, from Chile and Brazil to Colombia and Uruguay, strategies anchored externally by treaties and trade agreements and internally by strong fiscal and monetary institutions and policies. And he charts the less successful trajectories of Argentina, Venezuela, and Bolivia, which are still in thrall to utopian but impossible miracle cures.
Santiso's account of this emerging transformation describes Latin America at a crossroads. Beginning in 2006, elections in Brazil, Mexico, and elsewhere may signal whether Latin America will decisively choose the political economy of the possible over the political economy of the impossible.
Here Javier Santiso offers us an original and passionate view of the historic moment that Latin America is actually living through right now. It is required reading for all those who are interested in the region's development.
Ricardo Hausmann, Kennedy School of Government, Harvard University
A beautiful and elegant book. A well-argued and convincing thesis: that after centuries of dream chasing, pragmatism has come to Latin America. One passionately hopes that it will not go away.
Olivier Blanchard, Professor of Economics, MIT
A brilliant analysisclear, concise, and a must for all those interested in Latin America.
Jacques de Larosière, former Managing Director, International Monetary Fund
This book is a refreshing look at Latin America and will be encouraging to those who fear those countries are turning too for to the left, or for anyone who wishes to see how the land of magical realism has become quite pragmatic.