1. © T. M. Whitmore TODAY Exam 2 results Industrialization & development continued

2. © T. M. Whitmore Industrialization & Development Colonial era Post-colonial (19 th C and early 20 th ) Import substitution industrialization Export promotion industrialization  Special case of maquiladoras Currents geographies of industrialization

3. © T. M. Whitmore Export Promotion Industrialization I Due to failures of ISI and need of LA countries to satisfy banks from whom they borrowed to do the ISI Idea was to mimic success of Asian “Tigers” Based on “neo-classical” economic ideas  Assumes that markets manage best  Thus, open markets best (lower or eliminate tariffs) (tariffs are usually reciprocal)  Allow transnational corporationstransnational  Thus, attempts to create zones of free trade

4. © T. M. Whitmore Export Promotion Industrialization II Main advantage of LA in world economy (in addition to availability of some raw materials and agricultural products) for manufacturing is  Location near USA mkt.  The low cost of labor => labor- intensive (assembly) industries

5. © T. M. Whitmore Export Promotion Industrialization III Mexico and Brazil initially first in this due to their already existing industrial infrastructure MexicoBrazil  E.g., auto factories initially designed for ISI changed to export This pattern is greatest in the sphere of small-scale assembly of finished goods or parts – often in special zonesspecial These are usually referred to as Maquiladora assembly plants

6. © T. M. Whitmore Maquiladoras Foreign owned (mostly) assembly plants Located in special (low tax) zones or near US border Import parts – assemble them – export completed product (or sub-component) Major sources of new jobs in LA Mostly female Environmental and other problemsproblems

7. © T. M. Whitmore Current industrialization Mexico + Brazil ~ ½ of Latin American population but > 70% of industrial output Mexico + Brazil Brazil ~ 1/3 of pop but has ~ ½ industrial output by itself Argentina, Peru, Venezuela have ~ 25% of industrial output in LA Thus, ALL the rest of LA combined has less than 10% of all industrial output end

10. Auto train near Saltillo. Mexico

11. Kenworth (18 wheelers) exported FROM Monterey, Mexico to USA

13. Honda plant near Sao Paulo

18. © Secretaría de Economía, Mexico

27. © Zachary Miles Baddorf. www.baddorf.com

28. © Amnesty International