"development strategies? For 15 years Latin America has been experiencing an unprecedented strategic shift. The region has abandoned the strategy of inward-oriented development, with a market heavily involved and leading state and has taken a development strategy oriented towards external markets, where the allocation of resources is determined primarily by the market and where the principal agent of development is private.
Today is broad consensus that at least since the mid-seventies, the strategy of industrialization based on import substitution was having strongly diminishing returns and that the hyperactivity of the state had exceeded its capacity for effective action. However, it is also clear that to date the region has seen the promise, but not the reality, the expected results of the current strategic shift. Indeed, while inflation has been contained, the pace of economic expansion accuses a mediocre 3.3%: indeed, higher than the eighties, but well below the 7.5% of the "Asian tigers", and in particular , much less the 5.5% recorded between 1950-1980, when the prevailing strategy of import substitution.
Source: http://www.eclac.org/publicaciones/xml/3/13493/LCG2122P_I.pdf , last seen on November 7, 2007.
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