Looking at how Latin American countries have coped with the 1994 Mexican crisis and the earlier debt crisis of the 1980s, this book reveals the full extent of what has come to be known as the tequila effect. Written by distinguished economists and financiers from Latin America, the Caribbean, and the United States, the volume also examines the social, political, and economic issues associated with ever-expanding trade and globalization.

The book opens with chapters considering the impact of the Mexican crisis on Argentina, Colombia, and Venezuela, and it provides an interesting account of the events leading up to the crisis itself. In the following section, the contributors examine issues of economic growth by considering such topics as the need for a new growth strategy, by comparing the Latin American and Asian economies, and by looking at the Cuban economy from a trading partner's perspective. The final section takes an indepth look at the complex issues of neoliberalist versus neopopulist thinking in shaping Latin America's economic policies for the 21st century.

This book advances the theory that a potential leading export sector--in this case, the oil sector--is capable of inducing economic growth even in peripheral countries where the product line is primary in nature. In Venezuela the oil sector has contributed directly and indirectly to the development of the country's overall economy, particularly from 1936 to 1973, when that sector met the criteria of a leading sector, i.e., one that expands rapidly and obtains a large specific size relative to the economy as a whole. Oil investment in Venezuela contributed to the fiscal sector, the foreign sector, GDP, income, backward and forward linkages, the multiplier and accelerator effects, and the retained value of total expenditures. In spite of recent efforts to diversify the production and export mix, the Venezuelan economy continues to remain heavily dependent on oil production for export. During the midcentury decades of solid growth, it became evident that government oversight was needed to ensure that the numerous contributions flowing from the oil sector would be put to good use. Overall, it appears that the contributions were well utilized by the Venezuelan government, although there was plenty of room for improvement. Income distribution problems and other social inequities continued to beset the development process, leaving the economy rigid and inflexible. Consequently, when the oil sector faltered (1974 to 2000), Venezuela was unable to shift into other product lines. Political disarray soon followed, and with it a pervasive aura of economic uncertainty that persists to this day.

This work is the only economic history of Venezuela written in English. In it, Salazar-Carrillo provides estimates that have not been published previously on the Venezuelan economy in general, and the oil component in particular. Evolution of the oil industry in Venezuela is covered in detail and the concept of the retained value of oil expenditures and tnvestment is developed. Recent government policies and the performance of the Venezuelan economy are evaluated, and export-oriented strategies are considered. The appropriateness of these plans in fostering economic development is discussed.

An understanding of price structures and their impact on trade, productivity, and other related factors will aid in formulation of price policies promoting economic growth and development. Price formulation issues are examined within the context of nonmarket and imperfect market conditions, providing insightful linking of exchange rates and domestic prices to a wide array of factors that determine economic growth. Different facets of primary commodity price formation are explored, arriving at such conclusions as the fact that the dramatic rise in oil prices during the 1970s had little to do with the Latin American debt crisis or with the world recession that followed. Some new techniques for analysis are used, and commonly used techniques in price comparison studies are discussed.

This book is a study of Cuba's economic development under communism over the last fifty-five years. The authors find that Cuba's socioeconomic development has gone backward since the Cuban Revolution in 1959. The authors conclude that Fidel Castro's revolution has been an economic disaster for Cuba. The book first outlines Cuba's economic position prior to the revolution. It reviews Cuba's rankings with respect to Gross Domestic Product (GDP) per capita in the 1950s and examines the strength of pre-Castro Cuba's foreign reserves and the health of its monetary system. It also presents pre-Castro Cuba's investments in health care and education and documents the island's development potential in the 1950s. The last few chapters describe the precipitous decline in all of these areas of Cuba's economy under Castro. Despite the socioeconomic catastrophe of the Castro years, the authors envision a post-Castro Cuba, where this book can provide a benchmark to measure the developmental success that the Cuban work-ethic and entrepreneurial spirit can generate in a free-market system.

This book is a study of Cuba's economic development under communism over the last fifty-five years. The authors find that Cuba's socioeconomic development has gone backward since the Cuban Revolution in 1959. The authors conclude that Fidel Castro's revolution has been an economic disaster for Cuba. The book first outlines Cuba's economic position prior to the revolution. It reviews Cuba's rankings with respect to Gross Domestic Product (GDP) per capita in the 1950s and examines the strength of pre-Castro Cuba's foreign reserves and the health of its monetary system. It also presents pre-Castro Cuba's investments in health care and education and documents the island's development potential in the 1950s. The last few chapters describe the precipitous decline in all of these areas of Cuba's economy under Castro. Despite the socioeconomic catastrophe of the Castro years, the authors envision a post-Castro Cuba, where this book can provide a benchmark to measure the developmental success that the Cuban work-ethic and entrepreneurial spirit can generate in a free-market system.