Progress, Poverty and Exclusion: An Economic History of Latin America in the 20th Century

Abstract

Despite the great diversity of experience in the countries that together make up Latin America, there exists, among its students, a great desire to understand the region as a whole. This is especially true when it comes to questions of national and economic development and the social controversies of the twentieth century. Rosemary Thorp’s survey of the economic and social history of Latin America offers a welcome integration of the current state of knowledge of diverse national experiences into a sweeping account of the great forces of economic change over the past century. Necessarily, the author has left many favorite topics untouched; yet the conciseness and breathtaking pace are to the author’s credit, for with broad strokes, Thorp has painted a picture with remarkable insight and selectivity.The author’s profound experience as a scholar of Latin American economic history was supported by a select team of scholar-consultants, commissioned by the Inter-American Development Bank, and a massive project to compile and assemble an internally consistent database of economic and social indicators for all Latin American countries. Without diminishing the credit to the author, the auxiliary resources have undoubtedly contributed to the book’s success in integrating the individual histories of twenty diverse nations into a narrative that highlights both their unique and common features. It combines a meticulous comparative analysis of patterns and trends observable in the quantitative database with insightful anecdotes and examples. As for the common struggles in the region against poverty and inequality, Thorp maintains an objective voice and emphasizes demographic and international forces. Countries whose experiences deviate from the general trends are often highlighted in attempt to learn lessons from the exceptions.Particularly outstanding are the narratives of the two major crises of the century—the 1930s and the 1980s. The narrative proceeds from the liberal policies of the beginning of the century and ends with an account of the rise of neoliberalism in the 1980s. She concludes that the issues go deeper than the often-heard dispute about the appropriateness of market-based policies. “It turns on the fact that there is no substitute for the long haul of building or rebuilding institutional frameworks” (p. 273). Indeed, “institution building” is a recurrent, if undefined, theme. In context, it seems to refer most often to the growth in activities of formal development institutions, such as the IDB, including state and internationally sponsored organizations, central banks, and so forth. This contrasts sharply with the emphasis in more recent literature on institutions, which focuses on privately determined rules of behavior, legal institutions and property rights. Noticeably absent is any analysis of differences in the design or qualities of institutions or policy implementation. A similar criticism can be made regarding her treatment of the state as a uniform actor to the neglect of enormous differences in the institutions that underpin political representation. While the reader is convinced that institutions matter, no satisfactory explanation is offered as to how they matter. Given the conclusion that questions about institutions point the way forward, she might have given more attention to recent advances in that area.Any work of such magnitude will inevitably leave a gap or two. If unable to treat all themes with equal depth, Thorp has provided a remarkably thorough yet concise outline of the economic developments and their social consequences of the twentieth century in less than 300 pages. Its comprehensiveness and extensive data appendix make it a useful reference tool. As a textbook choice it has no equal, if one seeks a readable survey of the role of economic forces in twentieth-century Latin America that is concise and accessible. An admirable accomplishment, a welcome contribution!