TRADE LIBERALIZATION AND GROWTH - RECENT EXPERIENCES IN LATIN-AMERICA

After outlining trade liberalization programs in Latin America, this paper reviews some part of the voluminous literature on Asian export-oriented economies (the Republic of Korea, Taiwan, Indonesia, Malaysia and Thailand) so that the more recent experiences of the Latin American countries (LACs) can be compared with others of a longer standing and very different character. The greatest differences between the liberalization efforts of the LACs and the way in which Asian countries have opened up their economies are that most Latin American liberalization programs have been carried out rapidly with the state playing a passive role, whereas the opening of the Asian economies has been a long, state-led process involving construction of a production apparatus oriented towards international markets. The paper examines some of the key elements of reform programs in the light of the conditions that are needed to open up an economy so as to stimulate its long-term development. Regardless of whatever benefits may have been provided on the domestic front in the past, the old sort of protectionist policy is undoubtedly an obstacle to development in today's environment. -from Authors