The empty box syndrome

This article examines the thesis -posited in the book entitled “Changing Production Patterns with Social Equity” published by ECLAC- that no country in Latin America was successful in achieving high overall economic growth with a reduction of income inequalities in the 1980s. As compared to the experience of many countries in South East Asia, this was a lost decade for the region. This situation in Latin America has been referred to by Fernando Fajnzylber as the “casillero vacío” or “empty box” syndrome. The examination presented here is based on a comprehensive set of 33 variables related to economic stabilization, structural change, overall economic growth, and the standard of living. It is shown that many Latin American countries did indeed score relatively poorly as compared to Asian countries.