Development Policy and the Possibility of a “Livable” Future for Latin America

Abstract

The legacy of problems associated with Latin American development policy in the postwar era necessitates the asking of some fundamental questions about the future of development in that region. Economic growth rates have been insufficient, and the employment and distributional problems have been worsening. This situation is in large measure attributable to specific policies pursued by Latin American governments, especially the array of policies included under the rubric of “import-substituting industrialization.” Such policies are critically analyzed as a prelude to the discussion of a suggested reorientation of Latin American development policy. The goal of such a redirected, poverty-oriented development policy is the creation of “livable” (if not “developed”) societies. The effort to fashion development policies aiming at “livability” entails, at the most general level, distributional and short-run emphases. But it also involves the need for major innovations in such diverse areas as technological, agricultural, regional, and educational development. Reorientations of international development lending would also be required. The economic problems of the livability approach are formidable, but recent findings indicate that poverty-oriented development strategies may be economically viable. The political problems are equally if not more formidable, and it is likely that their confrontation will involve new ways of thinking about “political development” and about the relationship of political regime types to economic development.