A Catalyst for Hope

Kevin P. Gallagher

in The Oxford Handbook of Latin American Political Economy

Published in print May 2012 | ISBN: 9780199747504
Published online November 2012 | | DOI:

Series: Oxford Handbooks

A Catalyst for Hope

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  • Economics
  • International Economics
  • Economic Development and Growth



Although both China and Latin America and the Caribbean (LAC) have sought to reform their inward-looking economies and move toward integration into world markets for the last 30 years, the political economy of the two approaches is strikingly different. LAC nations to varying degrees deployed the infamous “Washington Consensus” that emphasizes the rapid liberalization of trade and investment regimes and the general reduction of the state in economic affairs. China has taken a more gradual and managed approach to globalization. This article is organized as follows. Section 2 discusses the positive impact of China's economic expansion on the commodity-driven boom in LAC. Section 3 examines the impact that China is having on the ability of LAC manufacturers to penetrate world manufacturing markets. Section 4 presents a brief overview of the different approaches to economic reform deployed in LAC and China. Section 5 discusses how all these factors may converge to affect the political economy of LAC's policies in years to come.

Keywords: China; Latin America; integration; economic reform; political economy; economic policy; economic expansion

Article.  8670 words. 

Subjects: Economics ; International Economics ; Economic Development and Growth

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