By Enrique Cárdenas, José Antonio Ocampo, Rosemary Thorp (eds.)
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Additional info for An Economic History of Twentieth-Century Latin America: Volume 3: Industrialization and the State in Latin America: The Postwar Years
On the contrary, the weight of agricultural interests was certainly behind the more balanced model that Colombia followed. This was also true of Central America where, nonetheless, size also mattered. This particular political economy was obviously no better in other regards. In Central America, the conflicts that exploded into civil wars in the 1970s and 1980s were rooted in the primary export model and, of course, played a central role in the demise of its peculiar marriage with weak state-led industrialization.
It distorted, moreover, the structure of incentives which the model itself required, particularly the relative price shifts necessary to induce import substitution in new sectors and exports in mature manufacturing and primary producing activities. It implied that, to Enrique CaÂrdenas, JoseÂ Antonio Ocampo and Rosemary Thorp 25 encourage additional import substitution, the only effective instruments became quantitative restrictions and even outright prohibition of competitive imports. This cumbersome system of protection was, thus, self-defeating in terms of its explicit objectives: to generate capital accumulation and an adequate diversification of the structure of production.
7 It is, however, appropriate to ask to what extent the neo-classical description of the events of the import substitution period actually derives from the very particular lenses through which these writers look at the world. 8 Rather the use of a certain package of information generally requires adaptation to the context, and this in turn demands ad hoc generation of new localized technical knowledge. By using an overly simplistic model which suggests the existence of generic production functions freely available in a stock or `shelf' of technologies to which the whole world has access, the neoclassical model simply isolates itself from the possibility of understanding the historical and cultural complexity of technological learning, and the profound influence of institutions on the path of a community's learning.
An Economic History of Twentieth-Century Latin America: Volume 3: Industrialization and the State in Latin America: The Postwar Years by Enrique Cárdenas, José Antonio Ocampo, Rosemary Thorp (eds.)