This course discusses Latin America’s economic and social performance, focusing on two salient features: faltering economic development and persistent inequalities. In particular, it explores the following central propositions:

• The secular foundations to the standard of living in Latin America are to be found in labour productivity and real wage levels;
• The lack of convergence with North America and Europe over the long run can be attributed to low levels of capital accumulation both physical and human (with pervasive labour informality);
• These accumulation and growth problems are related to the relationship with the global economy - and recurrent external crisis - and the chronic fiscal weakness of the state;
• Recent long-term evidence suggests that income inequality has been relatively high over time but far from constant and with significant country diversity.

The course combines a historical perspective with recent developments and policy issues. The first part introduces secular trends in living standards, productivity and real wages; documents the key structural transformations (urbanisation, industrialisation and demographic transition), and assess the economic development strategies of state-led industrialisation and export-led growth. The second part deals with income and horizontal inequalities and examines recent trends in inequality and policy efforts intended to close social and economic gaps.

Assessment

The final grade will be a weighted average of the assessment of: a team presentation of a case study (50% of the total grade); a final written work in pairs (50%) of a maximum length of 1,800 words (excluding references). More details to be given in due course

Competences, learning outcomes and teaching activities (PDF)