Unit X -Democracy and Globalization 2.0 (1) Flashcards
What event marks the beginning of the debt crisis in Latin America?
Mexico’s default in 1982
The debt crisis led to significant economic challenges for Latin America, resulting in a ‘Lost Decade’.
What economic model ended in the 1980s in Latin America?
ISI model
ISI stands for Import Substitution Industrialization.
What was the average public deficit as a percentage of GDP for Nicaragua from 1982 to 1990?
18.3%
This was one of the highest deficits in Latin America during that period.
Which economic condition characterized the 1980s in Latin America?
Stagflation
Stagflation is a combination of stagnation and inflation, leading to high inflation and unemployment.
What was the impact of the debt crisis on economic development in Latin America?
10 years of lost economic development
Latin America lagged behind both developed and developing countries during this period.
What were the general characteristics of the economic adjustment in the 1990s?
Severe cut in spending, sharp devaluations, and pro-market reforms
This included trade liberalization and privatizations of public enterprises.
What was a significant social consequence of the economic reforms in the 1990s?
Rising inequality and poverty
These social issues contributed to increased unrest and the rise of populism.
Fill in the blank: The democratization process in Latin America began in the _______.
1980s
This marked a shift from authoritarian regimes toward more democratic governance.
What was the Gini index trend in Latin America between the 1970s and 1990s?
Gini rises by 10%
This indicates increasing inequality during that period.
True or False: The debt crisis in the 1980s had a negative impact on inflation, poverty, and inequality.
True
The crisis exacerbated existing social and economic issues.
What did the structural reforms in the 1990s aim to achieve in Latin America?
Liberalization of markets
This included reducing state intervention and encouraging foreign investment.
What was one of the key factors contributing to the fall of dictatorships in Latin America during the 1980s?
Social unrest and protests
Notable events included protests in Argentina and Brazil.
What does the term ‘dirigiste model’ refer to in the context of Latin America?
A state-led economic model that collapsed in the 1980s
This model was characterized by heavy government intervention in the economy.
What were the main mechanisms leading to rising inequality during the economic reforms?
Employment reallocation and lack of social protections
These mechanisms led to adverse effects on vulnerable populations.
What was the effect of trade liberalization on labor informality in Latin America?
Increased labor informality
Trade liberalization often resulted in job insecurity and informal employment.
What was a significant economic trend observed in Latin America during the 1980s?
High public deficits
Many countries faced growing deficits due to increased expenditures.
What was the role of the IMF and World Bank during the end of the debt crisis?
Impose conditionalities for reforms
These conditionalities included trade and financial liberalization.
What were the consequences of the debt crisis on social spending?
Cuts in social and education spending
These cuts disproportionately affected vulnerable populations.
What is liberalization in the context of trade?
Reform and significant reduction of the tariff
It involves dismantling protectionism distortions, primarily for services.
What major trade agreement was established during the GATT Uruguay Round?
WTO created, elimination of non-tariff barriers
What historical event occurred in 2001 regarding global trade?
China joins the WTO
What characterized the 1990s in terms of political and economic environment?
Freer politics and freer markets
What does the term ‘Commodity Super-Cycle’ refer to?
A period of explosive demand for oil, metals, and agro products
What caused the super-cycle to end between 2013 and 2015?
China’s slowdown and rebalancing
