Slides Week 1 2024-25 AIGH

Question 1

What is the main focus of Part I of the outline?

Answer 1

Introduction: Why Latin America? Why EH225?

This section sets the stage for understanding the importance of studying Latin America within the context of the course.

Question 2

What does Part II of the outline address?

Answer 2

Latin America Today: Comparative study of the region

This part examines current challenges and conditions in Latin America.

Question 3

What are the main themes discussed in Part III?

Answer 3

Main Historical Challenges: Long-term view of development dynamics

This section explores historical factors affecting development in Latin America.

Question 4

What does Part IV focus on?

Answer 4

Historical Method: Historical approach vis-à-vis other methods

This part discusses the methodology used in studying history in comparison to other disciplines.

Question 5

What is highlighted in Part V?

Answer 5

Practicalities: Course Organization

This section outlines the organization and logistics of the course.

Question 6

What is a significant characteristic of Latin America regarding economic development?

Answer 6

Development with Inequality: Rich (Chile) and Middle-Income countries (Peru), all with high inequality (Gini)

This indicates that despite some wealth, inequality remains a critical issue.

Question 7

What has been the trend in poverty in Latin America since the 2000s?

Answer 7

Significant poverty reduction, yet 30% of the population remains poor

This reflects ongoing challenges despite improvements.

Question 8

What is a major vulnerability of Latin American economies?

Answer 8

Dependency on Commodity Exports: Reliant on natural resources, vulnerable to global economic changes

This indicates the risks associated with relying heavily on commodities.

Question 9

What is the urbanization rate in Latin America today?

Answer 9

80%

This high rate has implications for labor market dynamics.

Question 10

What percentage of the labor force in Latin America is informal?

Answer 10

50%

This highlights the challenges related to job security and labor rights.

Question 11

What does the term ‘Political and Social Instability’ refer to in the context of Latin America?

Answer 11

Mostly democratic, with frequent protests, corruption, and political shifts

This instability affects governance and economic development.

Question 12

What historical periods are significant in the economic history of Latin America?

Answer 12

From colonial times (16th), First Globalization (19th) to present globalization and entry of China (21st)

These periods mark significant shifts in economic patterns and global integration.

Question 13

What is the ‘puzzle’ of Latin American development?

Answer 13

Inequality, growth, and political dynamics engage with other social sciences

This indicates the complexity of understanding development in the region.

Question 14

What is the Gini coefficient’s significance in Latin America?

Answer 14

Latin America is the world’s most unequal region; Gini levels are roughly 50% higher than in Western Europe

This statistic highlights extreme income disparity in the region.

Question 15

What are some of the needed reforms for Latin America?

Answer 15

Political systems, inequality, economic distortions, high corruption

These reforms are crucial for improving governance and economic conditions.

Question 16

Current Challegnes Today oin Latin America

Answer 16

• High Corruption
• • Ei Far West (Lack of rule of law)
• Failed Estates (lack of state capacity)

Question 17

What does the term ‘Development trap’ refer to?

Answer 17

A vicious circle of high inequality and low growth

caused by concentration of economic and political power in part by widespread political criminal and social violence

This concept suggests systemic barriers to progress.

Question 18

What does the absence of the rule of law indicate in Latin America?

Answer 18

Weakness shown by impunity for the corrupt and high murder rates

This reflects serious governance issues in the region.

Question 19

What is the significance of ‘Failed Estates’ in Latin America?

Answer 19

Indicates the lack of state capacity and the need for more tax revenues

This points to systemic issues in governance and fiscal policy.

Question 20

What is a common sentiment among citizens regarding inequality in Latin America?

Answer 20

A sense of injustice and unequal opportunities

taxes only 19.8% of GDP compared to 33.5% in OECD

This sentiment fuels social unrest and protests.

Question 21

What is the historical context for populism in Latin America?

Answer 21

A long history of caudillos and populists, often arising from inequality and resource wealth

countries rich in natural reosurces –> legacies of slavery and colonialism scarred by extreme income inequality

This context is crucial for understanding contemporary political dynamics.

Question 22

What has contributed to the widening productivity gap in Latin America with other westner countries?

Answer 22

A lack of competition and prevalence of oligopolies

• half of country in informal economy for decades

This gap has implications for economic growth and innovation.

Question 23

What is a characteristic of the business landscape in Latin America?

Answer 23

Dominated by a small number of large, often family-run companies and many unproductive small firms

This structure affects overall economic performance.

Question 24

What does the quote from Adam Smith about the discovery of America imply?

Answer 24

It underscores the historical significance of America in global history

This perspective highlights the transformative potential of the continent.

Question 25

What is one of the key resources Latin America is rich in?

Answer 25

Natural resources such as water, forests (Amazonia), and minerals (copper, lithium, gold) ## Footnote These resources are crucial for both the local and global economy.

Question 26

What does the term 'strongman tradition' refer to?

Answer 26

A historical pattern of authoritarian leadership emerging from wars of independence ## Footnote This tradition influences current political structures in Latin America.

Question 27

What is the historical significance of Latin America in relation to Europe's industrial development?

Answer 27

Latin America plays a key role in Europe's industrial development at the cost of its own economic decline. ## Footnote This relationship highlights the extractive nature of colonialism and its long-term impacts.

Question 28

By what percentage was Latin America's income per capita in 1820 compared to the United States and Canada?

Answer 28

About two-thirds that of the United States and Canada. ## Footnote This indicates significant economic disparity that began in the early 19th century.

Question 29

What was Latin America's income per person approximately in the 2010s compared to North America?

Answer 29

Roughly one-fifth that of North America. ## Footnote This statistic reflects the ongoing economic challenges faced by the region.

Question 30

What does Douglass North argue about the connection between history and institutions?

Answer 30

The present and the future are connected to the past by the continuity of society's institutions. ## Footnote This emphasizes the importance of understanding historical roots for current development.

Question 31

What are the two types of colonization mentioned in relation to different development paths?

Answer 31

* Extractive systems (LAC) * Inclusive systems (USA-Canada) ## Footnote These types of colonization resulted in divergent economic outcomes for the regions.

Question 32

According to Polanyi, what constrains economic actors beyond pure economic logic?

Answer 32

Economic actors are constrained by overlapping institutions such as political and cultural contexts. ## Footnote This concept reinforces the idea of embeddedness in economic behavior.

Question 33

True or False: History has no impact on current economic activity.

Answer 33

False. ## Footnote Historical context shapes economic interactions and decisions.

Question 34

What key themes are discussed in the seminar regarding Latin America's economic development?

Answer 34

* Geography * Institutions * Colonial origins and legacies * Political and policy factors * Economic performance determinants ## Footnote These themes are crucial for understanding the complexities of Latin America's economic landscape.

Question 35

Fill in the blank: The gradual economic decline in Latin America has affected the lives of millions and explains why many among Latin America's youth strive to _______.

Answer 35

emigrate from their countries of birth. ## Footnote This reflects the socio-economic pressures faced by the youth in the region.

Question 36

What is the significance of studying history according to the text?

Answer 36

It allows us to apply and understand abstract economic theory from concrete cases. ## Footnote This approach enhances the relevance of economic theories to real-world scenarios.

Question 37

Who are the economists referred to as 'Worldly Philosophers'?

Answer 37

Economists who draw on the real world and history to develop their theories. ## Footnote This term highlights the integration of empirical evidence in economic thought.

Question 38

What does the term 'embeddedness' refer to in economic interactions?

Answer 38

Economic relations are embedded in complex social relations and an institutional/historical context. ## Footnote This concept challenges the notion of atomized economic actors.

Question 39

What is one of the aims of the seminar mentioned in the text?

Answer 39

To explore differences and similarities among individual countries as examples. ## Footnote This aim facilitates a deeper understanding of regional dynamics.

Question 40

What type of economic growth is referred to in the 21st century for Latin America?

Answer 40

Return of export-led growth and populism. ## Footnote This reflects the shifting economic strategies in response to global trends.

Question 41

What historical events are analyzed as determinants of current economic performance?

Answer 41

* Colonization * Institutional evolution * Economic policies ## Footnote These factors are crucial for understanding long-term economic trajectories.

Question 42

What does the course structure aim to build upon?

Answer 42

The course has a 'thread' to follow that complements the lecture. ## Footnote This structure is designed to enhance learning and retention of concepts.