The invisible hand, capital flows and stalled recovery in Latin America

One of the most important consequences of the debt crisis in Latin America was to bring about a radical change in economic philosophy, thus laying the basis for comprehensive policy reforms. In contrast to the external shocks and crisis of the 1930s, which had led to a switch away from laissezfaire towards a strategy of import substitution, and provided for a greatly enlarged role for the State, the shocks and crisis of the 1980s led to exactly the reverse movement, towards an outward-oriented development strategy based on deregulation, liberalization, and privatization.

Sustainable Development Goals:

Decent Work and Economic Growth

Partnerships for the Goals