The New Economic Model in Latin America and its Impact on by Victor Bulmer-Thomas

By Victor Bulmer-Thomas

The economies of Latin the United States have gone through a deep technique of switch within the final decade as a result of program of significant reforms. the end result will be particularly defined as a brand new financial version. This New fiscal version is individual from its predecessor, in strength prior to the Nineteen Eighties debt trouble, by means of an emphasis on marketplace forces and export-led development. This ebook explores the most gains of the recent financial version in Latin the US and, via research of the reform approach and case experiences, examines its influence on source of revenue distribution and poverty.

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By Victor Bulmer-Thomas

The economies of Latin the United States have gone through a deep technique of switch within the final decade as a result of program of significant reforms. the end result will be particularly defined as a brand new financial version. This New fiscal version is individual from its predecessor, in strength prior to the Nineteen Eighties debt trouble, by means of an emphasis on marketplace forces and export-led development. This ebook explores the most gains of the recent financial version in Latin the US and, via research of the reform approach and case experiences, examines its influence on source of revenue distribution and poverty.

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These barriers have become legendary, although the combination of tariff and non-tariff barriers makes it difficult to quantify them. 1. 27. This point cannot be stressed too much. Some studies of trade liberalisation erroneously imply that REER devaluation is optional. 28. High inflation rates, even if stable, tend to promote financial over real investment, reducing the importance of productive activity in generating profits. See Welch (1992) for a case study of Brazil. 29. See Perry and Herrera (1994).

35. 108-9. For a detailed axiomatic treatment of each of the main income distribution indicators, see Kakwani (1980). 36. The size distribution measures the share of income received by each decile (or some other equal division) of the population. When the information is presented cumulatively, it can be used to construct a Lorenz curve in which the horizontal axis records population and the vertical axis income. The Introduction 25 graph can then be used to measure the share of income received by any given proportion of the population starting from the poorest.

178-9. 3. 2. 4. 100. There are, however, other estimates of poverty in 1980. 5% for the headcount index of poverty as a result of different assumptions and the use of a different methodology. 66. 5. Between 1970 and 1980 the proportion of the urban population living in poverty rose from 27% to 30%, although the proportion living in extreme poverty fell from 12% to 11%. 100. 6. Fields ( 1992) could not find a single case in which expansion of real GDP per head before 1980 was not accompanied by a fall in national poverty as measured by the headcount index.

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