The state and the private sector in Latin America: Reflections on the past, the present and the future

Abstract

The role of the state, priva te domestic firms, and foreign firms has changed substantially in recent years throughout Latin America's economies. An almost universall y accepted goal in the 1990s seems to be to reduce the presence of the state in the region's economies, to reduce state regulations, to encourage the growth of the private domestic sector, and to welcome the participation of foreign capital not only in manufacturing industries, but also in areas reserved for the state for the 1ast half century (such as public utilities and the exploitation of natural resources). This is quite a change from the mood that prevailed in most of Latin America during the heyday of import-substitution industrialization (ISI) in the three decades following World War n. Then, state firms dominated public utilities, the exploitation of natural resources, and some basic industries (like petroleum refining and steel), and was a prominent player in banking, petrochemicals, and some other industries. A longer view, however, reveals that the current privatization thrust might not be a 180-but rather a 360-degree swing, since in the early decades of this century the private sector (especially foreign capital) was dominant in extractive industries and public utilities. We shall first review the role of the public and private sectors in distinct periods of Latin America's development-the pre-1S1 period, when primary exports were the leading sector; the ISI period, which spanned the period from the Great Depression of the 1930s to the 1960s; and the two decades (the 1970s and the 1980s) when the region suffered external (oil prices and interest rate) shocks, became heavily indebted, and then stagnated during the debt crisis decade of the 1980s. We shall then examine implications of the privatization trend in Latin America-its promises and pitfalls, its implication for a new state rol e in the economy, the extent to which it will require a more open economy, and its implication for a new growth model for the region.

Families, Schools, and Primary-School Learning : Evidence for Argentina and Colombia in an International Perspective

“…This paper estimates empirically the importance of family features and school policies for learning achievement in primary school in two Latin American countries, Argentina and Colombia. It has long been realized that education is one of the key challenges for government policy in Latin America in the era of government withdrawal due to economic liberalization and privatization (cf., e.g., Edwards and Baer 1993). Furthermore, the supply of skilled workers through widespread high-quality education, rather than the liberalization reforms, can be expected to affect the long-run income distribution in Latin America (Baer and Maloney 1997).…”

The consolidation of adjustment: Implications for public administration

“…'Progress' in formal privatisation has been modest except in some specific more advanced countries: Chile, Mexico, Argentina, Malaysia, Thailand and to some extent in French West Africa. It has often been imposed by fiscal crisis, debt, donor pressure and political last resort (Adam et al, 1993, Edwards andBaer, 1992;Cook and Kirkpatrick, 1988). 0 incremental 'privatisation' in response to the failure of public services, where enterprises and households find their own market solutions especially in the spheres of essential personal services (transport, education, health) and infrastructure (water, power).…”

Families, schools and primary-school learning: evidence for Argentina and Colombia in an international perspective

“…It has long been realized that education is one of the key challenges for government policy in Latin America in the era of government withdrawal due to economic liberalization and privatization (cf., e.g., Edwards and Baer 1993). Furthermore, the supply of skilled workers through widespread high-quality education, rather than the liberalization reforms, can be expected to affect the long-run income distribution in Latin America (Baer and Maloney 1997).…”