1. ECO 359 Economic Development Economic Development of Latin America Professor Malamud BEH 502 895 – 3294 Fax: 895 – 1354 Email: malamud@ccmail.nevada.edumalamud@ccmail.nevada.edu Website: follow the links

2. Why has Latin American development lagged? Why is per capita income in Argentina, the richest country in South America, only 1/3 of US income (after adjusting for living costs)? Why is per capita income in neighboring Mexico only ¼ of US income? Why is per capita income in Bolivia, the poorest country in SA, less than 10% of US income?

3. What to do? Neoliberalism: Prescription du jour Privatize Free Trade: Export – Led Growth Free Capital Flows: Encourage FDI Fiscal Discipline Price Stability … Dollarization?

4. Former Fads Import Substitution Industrialization Plan and Protect Redistribution Populist Spurts

5. Final Thoughts 1) In what ways has Latin America fallen behind economically? (Answer generally and specifically for at least two countries). 2) Why has Latin America fallen behind economically? (Refer to at least two theories of development in your answer). 3) What development strategies that have worked elsewhere are most promising for Latin America? (If you believe that no strategy is promising, explain why).

6. Mexico: Bloom off Boom NAFTA Ties Trade Migration Lowest Short Rate Ever (<7%) Vincente Fox A promise of inclusion

7. Mercosur Argentina: A Neoliberal Poster Child ??? Peso collapse Default Depression Brazil IMF Conditionality Populism Redux