TWO COMPLEMENTARY VISIONS OF LATIN ….doc

TWO COMPLEMENTARY VISIONS OF LATIN AMERICAN DEVELOPMENT The theoretical contributions of Douglass North and Raul Prebisch Armando Di Filippo Tinker Visiting Professor Latin American Studies STANFORD, CALIFORNIA adifilip@ INTRODUCTION The interaction between macro and micro approaches The underlying ideologies similarities and contrasts THE COLONIAL INHERITANCE THE FORMATION OF PERIPHERAL CAPITALISM Types of exporting economies Two examples of rural property rules: Argentina and Bolivia The urban configuration INDUSTRIALIZATION AND URBANIZATION DURING THE 20th CENTURY The strategy of protected development Dynamic insufficiency and structural heterogeneity MIDDLE OF 20th CENTURY: MAIN INSTITUTIONAL CONSTRAINTS The closeness of the development economic model The power structure of rural areas The migration impact as a motor of change LAC: CAPITALISM AND DEMOCRACY IN 21st CENTURY The opening up of LAC economies to the 21st global order The accelerated transformation of rural societies THE COMPLEMENTARY NATURE OF TRANSFORMATIVE FORCES INTRODUCTION This paper tries to elaborate a vision of long term Latin American Development that combines the conceptual contributions of Raul Prebisch and Douglass North. In principle this seems an unfeasible and contradictory task. We shall try to prove the opposite and to show that these two approaches are complementary in their interpretative scientific vision and their empirical sources and methods, even though they may differ in their ideological implications and policy recommendations. The theoretical contributions of Masahiko Aoki (2001) will be additionally considered to evidence the complementary nature of Prebisch’s and North’s approaches to Latin American development. The interest of this paper is not purely theoretical and the concepts and hypothesis here addressed are only tools applied to the understanding of the causal factors that shaped Latin American