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LATIN AMERICAN POLITICS
Unit 3 Focus Questions: The Political Economy of Development in Latin America
1.
Why do we need to study Latin American economies to understand the region’s politics? What is the
relationship between political choices in the region and its economic development? Looking back at
the last several decades, how is development fairing in the region as a whole?
2. What major theories have been used to explain why the region has long struggled with development?
Why did most Latin American economies initially focus on one or two exportable primary products,
and what problems came from this? How do “dependency theory” and “modernization theory” differ
in their explanations for why countries in Latin America stayed poor over time, and what different
growth strategies have their adherents recommended? What was the logic of “import-substitution
industrialization” (ISI) and what is its track-record?
3. How does “neo-liberal” economic theory account for underdevelopment in Latin America, and what is
the track-record of its “Washington Consensus” recommendations for development policy-makers?
4. Why do scholars like Francis Fukuyama see inequality as both a political and economic problem for
the region? Which economic measures—per capita GDP, inequality, poverty rates or levels of
corruption and clientelism—are most closely tied to support for democracy in the region? Which
countries are the most and least equal? Which are the most and least prosperous?
5. Which ones deal with poverty best? How do cash transfer programs address poverty? How wide
spread are these in Latin America and how are they working?
6. Using your understanding of the economies of Ven., Cuba, Chile, and (looking back to the last unit)
Brazil, what factors distinguish “market capitalism,” “state capitalism,” and instituting a “command
economy”? What are the priorities, core assumptions, strengths, and weaknesses of each approach to
development and equity? Which approaches have had the most success in Latin America? Which
models are being pursued in the region today? Which model is most reflected in the “Washington
Consensus,” and why is that consensus now under attack throughout Latin America?
7. Which of the development strategies discussed in class (market capitalism, state capitalism, and a
command economy) best applies to the different historical periods of the case study countries we have
examined closely (including Brazil, Mexico)? Which strategy is being used today in Chile, Cuba, and
Venezuela? Is there any evidence from these countries to suggest that one approach is superior to the
others?
8. Chile, Cuba, and Venezuela—our three case studies in this unit—have very different reputations when
it comes to development and dealing with poverty. What do the statistics we reviewed in class and
those highlighted by the economic data covered in class have to say about these countries’ differences
and similarities? Do any of these countries’ economies stand out as being especially effective or weak
in providing for its citizens?
9. What did socioeconomic life in Cuba look like before its revolution? Why did the US interfere in the
first Cuban revolution (its independence at the turn of the century) and then support various dictators
afterwards? How did the 1959 revolution transform economics and society in Cuba, and why did Cuba
end up being an ally of the Soviet Union and an enemy of the United States?
10. What role do the Cuban Communist Party and the army play in the governance of Cuba? Is Cuba
remotely democratic as one might perhaps think given the fact that it has a legislature and elections?
How repressive has Cuban socialism been?
11. How well does Cuba’s economy work? What do its growth rates, inflation, and unemployment rates
look like? How well do Cubans live? What major reforms has the Cuban government pursued of the
years, and how successful have they been in trying to make the Cuban economy sustainable? What
role, if any, does the US embargo play in Cuba’s growth problems?
12. Given your understanding of political institutions in Cuba, how likely is it that the death of Fidel
Castro will result in democracy or market capitalism quickly emerging in Cuba?
13. What is it about the history of Venezuela and particularly its military that makes Venezuela unusually
susceptible to military governments? To what extent did the goals of the coup led by Hugo Chavez
when he was a colonel differ from those of the coup led by Augusto Pinochet in Chile?
14. How did oil help Venezuela come to be one of the region’s best regarded democracies between 1958
and 1989? Why did the political alliance between AD and COPEI work to decrease political violence,
and why did it eventually breed the corruption that led to the rise of Hugo Chavez? How rich was
Venezuela during its era of two-party democracy, and who most benefited from its economic policies
during this period?
15. What type of leader is Hugo Chavez: A democratic, a populist, a dictator, or a tyrant? What major
changes did he make to the Venezuelan political and economic system after his election in 1989? Is
there any evidence to suggest that he’s a lot more radical in rhetoric than he is in changing the way
the economy works?
16. What are the key components of Chavismo, and how radical is it compared to the Cuban experience?
How much support does Chavez have in the Venezuelan population, and which groups support/hate
him the most? Has he rebalanced Venezuelan politics away from serving the interests of the few in
favor of serving the many?
17. Chavez frequently says that his political priority is to help working class Venezuelans improve their
lives. What major changes has he made to the Venezuelan economy that supposedly will benefit the
poor? How has the economy performed under his leadership, and what evidence is there to suggest
inflation, unemployment, growth, and even poverty have all become worse under his leadership? Why
does Chavez still enjoy so much support among working-class Venezuelans despite the poor economic
record of his governments?
18. Why is the left presently doing so well politically in many different countries in Latin America? What
are the main types of left-leaning leaders in Latin America today? Which types of leftist leaders have
been most successful in effectively governing their country? Which, if any, of the economic strategies
and social policies implemented by left-of-center governments have worked very well?
19. Why did an authoritarian military regime take over Chile in the 1970s? What aspects of the design of
the Chilean political system made it more susceptible to political gridlock and presidents pursuing
radical policies that were not supported by a majority of the population? What was the view of the
military regime regarding the value of politics and democracy? Who did it repress and how?
20. What circumstances led Chile’s military regime finally to step down? How radical was the government
that replaced it, and how did it address the serious human rights violations committed by former
government officials? How have changes to the electoral system instituted by the military helped to
keep Chilean politics in the center? What, if anything, have post-Pinochet governments done to make
the political system more democratic than was the case under military rule?
21. How did the “Chicago Boys” transform the Chilean economy during the military regime, and what
aspects of their approach to economic development have been retained in the post-Pinochet period?
How well does today’s Chile take care of its poorer citizens when compared to the era of military rule
and left-of-center government in other parts of Latin America?
22. Some scholars point to Chile as evidence that military governments can be very successful
economically. Looking at various data and charts on Chile, is there any evidence to suggest that the
several post-Pinochet democratic governments have been more successful at running the economy
than the military regime was?