The new economic modelin Latin America and its impact on income distribution and poverty

All over Latin America there has been a deep process of economic reform in response to the debt crisis of the 1980s. The debt crisis forced Latin America to give a much higher priority to the macroeconomic and microeconomic reforms that had been needed for some time. The reform process has been carried forward in many areas including the current and capital accounts of the balance of payments, financial markets, labour markets and a redrawing of the boundaries between the private and the public sector. These reforms, when fully implemented, represents a sea-change in economic policy in Latin America and can be considered as a 'New Economic Model'. This book, drawing upon the work of a study group based at the Institute of Latin American Studies in London, examines each of the major areas of reform to explore the impact on income distribution and poverty. This research is complemented by case-studies of Brazil, Chile, Honduras, Mexico and the manufacturing sector to derive a series of conclusions on how the New Economic Model is affecting poverty and income distribution in the region.