Economic Viewpoint on Latin America Is Lost
“In Latin Economies, a Sinking Feeling” [May 29] was revealing in its mistaken view of what has happened in the region.
Since a terrible “debt crisis” in 1982 and a decade-long depression, one country after another has been forced to give up government subsidies to industry and the poor in favor of what writer Chris Kraul calls “free-market reforms.” These were not reforms but impositions.
The results everywhere this “neo-liberalism” (the phrase used by Latin Americans) has been imposed have been just as your article noted: a worsening distribution of income and an intensification of poverty. These consequences were, after all, what was intended by U.S. officials, U.S. economists and officials at international lending agencies who demanded the Latin Americans change policies or go under in a sea of debt.
The comments of professor Steve H. Hanke of Johns Hopkins University are the most striking element in the article. Hanke blames the Latin Americans for their problems, saying “most are still highly protected, bush-league economies that won’t fully open up to international competition.”
What arrogance! If your ideas fail, blame the impoverished victims! This is an “expert” on the region? He is obviously ignorant of the complexities, historic and cultural, that still shape what these nations can do to help themselves and the horrible social costs that have already followed “opening up” their economies.
Michael Monteon
Professor of history
UC San Diego
La Jolla
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