Neoliberal Transition in Latin America Essay Example | Topics and Well Written Essays - 3000 words

Neoliberal Transition in Latin America - leaven ExampleEconomic integration between countries will be examined to see if any neo-liberalism is taking place within the regions of Latin American countries. Discussion includes summary of manufacturing products and those based on renewable resources mainly in relation to regional development in Chile and the growth of non-traditional exports and wear out markets. The paper first examines the origins and image processes of neo-liberalism.Neo-liberalism maintains people act according to self-interest and that markets yield the most efficient outcome by free trade balances within liberalized capital markets with minimal presidency intervention in the economy. Karl Marx developed the theory that under capitalism, technical and distributional changes tend to follow specific patterns of evolution. This course of changes coalesces the expansion of output, capital, and employment. (Other mitigating factors include the rise of labor producti vity, the real wage, and the capital-to-labor ratio.) Further in the evolution lies difficulty to sustain the progress of labor productivity without resorting to increased amounts of capital investment. The decline of the profit rate creates the conditions for self-aggrandising crises resulting in recessions and unemployment. (These movements and tendencies occur at declining rates of variation (Dumenil & Levy, 2004).Marxist economics is deeply rooted in many Latin countriesand enjoy a tender historical foundation however, with the rise of the Cold War and the increasing United States hostility towardanything remotely progressive, the left in Latin America was first, mildly, and then badly repressed. The list of casualties includes The Arbenz regime in Guatemala Goulart in Brazil Allende in Chile and democracy in Uruguay and Argentina (Noble & Weinstein, 2005).