Latin American Structuralism and Current Financialization

Abstract

In this article, we attempt to update the understanding of the external constraint in Latin America by examining the recent history of the region through the analytical framework of Karl Polanyi in The Great Transformation. As we argue, the greatest force behind today’s external restriction is the financial sector, much as it was a century ago. To reinforce this hypothesis, we provide the reader with relatively new historical material and with arguments made by scholars from diverse backgrounds. Taking into consideration the political and economic structures of Latin America, we argue that the international connections between the elite of the center and the periphery remain the key aspect in understanding today’s complex reality.