Productive Structure, Distribution and Growth in Latin America.
A Critical Review of Two Recent Heterodox Approaches.
Keywords:
distributive conflict, new-structuralism, new-developmentalism, exchange rate, economic growthAbstract
In this paper we develop a theoretical framework to critically examine two recent approaches, whose main conclusions and policy prescriptions for Latin American countries heavily depend on the prevailing productive structure of the economy: the New-Structuralism and the New-Developmentalism. We argue that: a) although each view assumes a different pattern of specialization, both consider that the prevailing technical conditions are a purely technical datum of the economy, which cannot be modified by changes in the conditions that regulate income distribution; b) the growth regimes adopted by each of these positions are valid only under very restrictive conditions, and are therefore inadequate to explore the challenges of development faced by Latin American peripheral economies. As a result, we warn about the potential risks of employing exchange rate policy –the key instrument under both views- as a fundamental tool for promoting growth.
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