Abstract
From the perspective of results in terms of growth as a whole, Latin America and particularly some countries of the continent are experiencing an economic stage that could be described as fairly pleasant. There are, of course, differences among countries, but several of them have reported GDP growth rates of over 4 % in real terms since 2000. The impact of the international economic-financial crisis had its worst manifestation in 2009, when Brazil, Chile, Venezuela and especially Mexico reported real negative rates in the variation in their GDP. However, in 2010, all of them returned to very positive rates of expansion and as some reliable reports have suggested, Latin America and the Caribbean (LAC) confirmed its economic power in 2012 because the region was capable of resisting international economic instabilities and maintains expectations of growth of 3.5–4 % for the next 2 years. Theses positive perspectives constitute a clear opportunity to re-consider the territorial problems and regional disparities that exist in the majority of the L.A. countries. The authors suggest why and how.
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Notes
- 1.
Data extracted from World Bank reports, Anuario Estadístico de América Latina y Caribe 2012, and statistics and forecasts through 2012 published by ECLAC (CEPAL). When this text was written, reliable data on 2012 results were not available.
- 2.
See Perspectivas económicas de America Latina 2012 (OECD-CEPAL 2011) and the more recent report by the International Monetary Fund.
- 3.
It is important to keep in mind that Santa Cruz is responsible for exceptional energy production that increases the average per capita production.
- 4.
The content of this expression – stagflation – was also applied to several European nations, neither the causes, the levels that inflation reached, nor the limited growth and scant job creation are comparable to the situation of various Latin American nations, as in the cases of Peru, Ecuador, and Brazil.
- 5.
- 6.
These ‘lacks’ include at least the following: the existence of non-competitive markets; the failure to consider external effects; the deficient or non-existent assessment of public goods; the existence of increasing production of scale; the lack of consideration for income distribution; the failure to resolve imbalances and growth of the economy; the existence of preferential and undesired needs; the lack of solidarity that the market promotes in social conduct; the flawed allocation in relation to the ‘moral risk’; and the ineffectiveness of the market when urgent problems develop.
- 7.
This is also sometimes called the ‘social market economy.’
- 8.
Or of a set of countries if one is considering nations linked to an economic integration process, like the European Union, or connected through an agreement that is more limited to the commercial realm, as MERCOSUR essentially continues to be, or like NAFTA.
- 9.
The possible confusion may increase when the concept of ‘territorial organization policies’ is included. These policies have a different meaning than the other two, though they can be incorporated as part of them. ‘Organizing’ a territory is not the same as economically balancing the regions of a country or a group of countries. Territorial organization looks to do something that is much more closely linked with a respectful treatment of space, evaluating the consequences – mainly physical, of respect for nature, etc. – that may come from any public action (transportation networks and new infrastructure) and urban problems and systems, rural areas, natural spaces that must be protected, etc.
- 10.
- 11.
By contrast, deregulation policies, privatizations, etc., that is, elements that are favorable to the free movement of the market and competition, are accepted.
- 12.
Some could qualify them as ‘preferences’ or ‘value judgments’ of those who build any theory. Regarding the ‘Hume rule’ on the need to establish a border between what ‘science’ can contribute and preferences around specific ‘values’ have been – as G. Myrdal demonstrated in his doctoral thesis – a common note for all economists (Myrdal 1953).
- 13.
- 14.
In the case of the EU, the main argument in favor of a shared regional policy is linked to the concept of social and territorial ‘cohesion,’ which was introduced for the first time in the Maastricht Treaty of 1992. This document states (Art. 130 a) that “Con el fin de promover un desarrollo armonioso del conjunto de la Comunidad, ésta desarrollará y proseguirá su acción encaminada a reforzar su cohesión económica y social. En particular, la Comunidad tendrá por objetivo reducir las disparidades entre las diversas regiones y el retraso de las regiones menos desarrolladas, incluidas las zonas rurales” (‘In order to promote harmonious development of the entire Community, it will develop and pursue action aimed at reinforcing economic and social cohesion. Specifically, the Community will seek to reduce disparities among its various regions and the delay of less developed regions including rural areas’).
- 15.
This concept includes both unemployment and labor participation rates. Policies related to labor activation seek to improve skills and abilities, looking to better match supply and demand and other aspects of the labor market rather than simply focusing on the reform of labor markets in terms of salaries.
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Cuadrado-Roura, J.R., Aroca, P. (2013). Facing the Need for Regional Policies in Latin America. In: Cuadrado-Roura, J., Aroca, P. (eds) Regional Problems and Policies in Latin America. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-39674-8_2
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