ECONOMIC DEVELOPMENT OF THE NEWLY INDUSTRIAL COUNTRIES OF LATIN AMERICA: HISTORICAL ASPECT
DOI:
https://doi.org/10.32689/2523-4536/71-1Keywords:
economic development, economic growth, Latin American countries, import-substituting industrialization, new industrialized countriesAbstract
The retrospective review of the formation and development of the new industrial countries of Latin America, beginning with the colonial period and continuing through the 20th century and ending with the 20s of the XXI century is provided in the article. The prevailing development trends of Argentina, Brazil, Mexico during the selected historical period are considered. The main drivers and restraining factors of growth are determined. The dynamics of the main economic indicators, in particular gross domestic products (GDP) growth, the share of the leading sectors of the economy in the GDP structure, the share of exports of goods and services, etc. are studied. The experience of new industrial countries of Latin American countries proves that the foundations for the formation of the economic policy of these countries is founded in the colonial period and related to the nature of the use of natural resources, social institutions, foreign trade and financial relations. It is revealed that the peak of economic growth of the newly industrialized countries was reached after the countries gained independence and due to the industrialization policy aimed at import substitution, which at the initial stage provided many benefits for the economy, when consumer goods were substituted. This made it possible to achieve self-sufficiency in a wide range of consumer goods, to create a sufficiently diversified manufacturing industry, to change the sectorial structure of the economy, etc. At the same time, its positive influence was not long lasting, because it did not contribute to the technological development of industry and the export of highly competitive products, instead, it caused macroeconomic and financial instability, social upheavals and crises in the new industrial countries of Latin America. This was due to the action of “peripheral capitalism” (the process of borrowing and spreading technology, economical model, consumption standards, as well as cultural values to other social cultures that are not adapted to their adoption), imperfections of socio-political institutions, and dependence on the world economy.
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