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Trade Liberalization in Latin America 41 Manuel Agosin and Ricardo Ffreneh-Davis

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Trade Liberalization in Latin America 41 Manuel Agosin and Ricardo Ffreneh-Davis United Natio ns E C L il C Ec o n o m ic c o m m is s io n FOR LATIN AMERICA AND THE CARIBBEAN GERT ROSENTHAL Executive Secretary CARLOS MASSAD Deputy Executive Secretary n CEPAL RJE V I E W , NUMBER SO AUGUST 1993 SANTIAGO, CHILE ANIBAL PINTO Director of the Review EUGENIO LAHERA Technical Secretary U nited n at io n s CEPAL Review is prepared by the Secretariat of the Economic Commission for Latin America and the Caribbean. The views expressed in the signed articles, including the contributions of Secretariat staff members, however, represent the personal opinion of the authors and do not necessarily reflect the views of the Organization. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries. Notes and explanation of symbols The following symbols are used in tables in the Review: (...) Three dots indicate that data are not available or are not separately reported. (“ ) A dash indicates that the amount is nil or negligible. A blank space in a table means that the item in question is not applicable. O A minus sign indicates a deficit or decrease, unless otherwise specified. (■) A point is used to indicate decimals. (0 A slash indicates a crop year or fiscal year, e.g., 1970/1971. (-) Use of a hyphen between years, e.g., 1971-1973, indicates reference to the complete number of calendar years involved, including the beginning and end years. References to “tons” mean metric tons, and to “dollars”, United States dollars, unless otherwise stated. Unless otherwise stated, references to annual rates of growth or variation signify compound annual rates. Individual figures and percentages in tables do not necessarily add up to the corresponding totals, because of rounding. LC/G.1767-P August 1993 United Nations Publication ISSN 0251-2920 ISBN 924-121188-3 Applications for the right to reproduce this work or parts thereof are welcomed and should be sent to the Secretary of the Publications Board, United Nations Headquarters, New York, N.Y, 10017, U.S.A. Member States and their governmental institutions may reproduce this work without application, but are requested to mention the source and inform the United Nations of such reproduction. Copyright © United Nations 1993 All rights reserved Printed in Chile CEPAL REVIEW 60 CONTENTS In memory of Pedro Vuskovic 9 Jacobo Schatan Regional integration In the 1990s 11 Gert Rosenthal The integratlonlst revival: A return to Prebisch's policy prescriptions 21 José Manuel Salazar Trade liberalization in Latin America 41 Manuel Agosin and Ricardo Ffreneh-Davis Growth, crises and strategic turnarounds 63 Joseph Ramos Market failure and technological policy 81 Jorge M. Katz The monetary crisis, dollarization and the exchange rate 93 Paulo Nogueira Batista Jr. Financing decentralization 109 Dolores María Rufián Lizana Intraregional migration of skilled manpower 127 Jorge Martinez Social sciences and social reality in Central America 147 Andrés Pérez The history of the social stratification of Latin America 163 Enzo Faletto Socio-economic structure and collective behaviour 181 Rodrigo Baño Index of CEPAL Review, Numbers 1 - 50 201 Guidelines for contributors to CEPAL Review 237 Recent ECLAC publications 239 AUOUST 1993 CEPAL REVIEW SO Issue No. 50 of CEPAL Review W h e n theReview began publication in 1976, its purpose was twofold: it was to carry on the Boletín Econômico de América Latina *s long tradition of exploring a variety of subjects relevant to Latin American and Caribbean economic devel­ opment for a reading public who very probably cover a broader spectrum than does the readership of official ECLAC documents, and it was intended to give professional staff members of the Commission, who usually work anonymously as part of a team effort, the rare opportunity to publish their work under their own name. Today, after nearly 17 years of continuous publication -first under the di­ rection of Raúl Prebisch and then, from 1986 on, under the guidance of Aníbal Pinto- ECLAC is publishing the Review’s fiftieth issue. Thanks in large measure to these men, who have been so integral a part of the Commission’s life as an institution, and to their respective collaborators, including the Review’s technical secretaries, from Adolfo Gurrieri on to Eugenio Lahera, this publication has ably performed those functions. The Review has indeed served as a forum open to all schools of thought, primarily for staff members of the ECLAC system but for others as well, and in so doing has managed to maintain its standards of technical excellence along with the relevance afforded by the analysis of topical events. Furthermore, both its Spanish-speaking and English-speaking audiences have been growing steadily. We are therefore gratified to be marking this milestone in the life of a valu­ able publication which, we trust, will maintain and further enhance its present stature. Gert Rosenthal Executive Secretary AUGUST 1993 CEPAL REVIEW 30 9 In memory of Pedro Vuskovic For those of us who shared many years offriendship and professional collaboration with Pedro Vuskovic, the news of his recent death in Mexico has been the cause of great sorrow, not only because of the circumstances of his death, following a cruel disease that gradually sapped his physical -but not intellectual- strength, but also because it signifies the loss of a great Latin American, of a teacher who helped shape so many generations of young people in our region, and of a companion during so many days of intellectual strivings and political struggle. Pedro joined the Commission in 2950, shortly after its birth as an institution. For nearly 20 years he served it brilliantly in a professional capacity, with his career in ECLAC culminating in the position of Director of the Development Division. He played a crucial role in structuring and disseminating the thinJdng of ECLAC during a time when the very air teemed with the ideas and concerns of a pleiad of gifted economists and social scientists. These were the post-war years, the 1950s and 1960s, when we all had to "construct" Latin America. Pedro Vuskovic laid many of the bricks in that collective theoretical and political edifice which has been o f such importance to the countries of the region. Concurrently, he served as a professor in ECLAC and ILPES training programmes while at the same time teaching classes at the schools of economics and sociology at the University of Chile and the School of Economics at the University of Concepción. When he left ECLAC, Pedro plunged wholeheartedly into the academic world, serving as the Director of the Institute of Economics of the University of Chile, and then went on to claim a position at the forefront of Chilean politics. In November 1970 he was named Minister of Economic Affairs by President Salvador Allende and, in June 1972, took over the cabinet-level position of Executive Vice President of the Production Development Corpor­ ation (CORFO), where he served until September 1973. When political events carried him into exile in Mexico, which generously welcomed him as it did so many other Latin Americans who faced similar problems, Pedro carried on his valuable academic work, first at the Economic Research and Teaching Centre (CIDE), where he directed the Institute of Economic Studies of Latin America, and later at the Centre for Interdisciplinary Research in the Humanities at the National University of Mexico (UNAM), where he was named to the position of Coordinator for a programme on poverty and development options in various countries of Latin America. Although he will be remembered for his important political role, Pedro's work as a scholar and as an economist deserve special mention. He was a brilliant speaker, at the same time both methodical and incisive, who mastered his subjects with great wisdom and intellectual breadth, and he derived a special joy from being with young people, from providing them with intellectual stimulation and receiving it from them in turn. The many generations of Latin American students who were fortunate enough to have him as a teacher can attest to this. Pedro Vuskovic brought to his work as a researcher and teacher a deep sense of political and social responsibility which moved him to espouse the cause of Latin America^ poor and dispossessed, whose position he had come to understand very early on in his life through the many studies he carried out in this area while at ECLAC. He was tenacious in upholding his ideas and principles, he lived in accordance with them, and he championed them in all the forums open to him, in both the political and academic worlds, to the end of his days. His friends and colleagues also remember his geniality, his sense of humour and great personal warmth -traits which were coupled with an unshakable loyalty to his principles and values. Our farewell is deeply felt; Pedro Vuskovic has left us a legacy of memories and lessons that we will always hold close to our hearts. On behalf of his friends and colleagues, Jacobo Schatan former Director of the Joint e c la c /fa o Agriculture Division AUGUST 1993 CEPAL REVIEW SU 11 Regional integration in the 1990s Gert Rosenthal Executive Secretary of the The renewed interest sparked by the potential for intraregional Economic Commission cooperation in Latin America and the Caribbean today has been for Latin America and the Caribbean reflected in numerous agreements regarding trade preferences (ECLAC). and in attempts to establish free trade areas, customs unions or common markets.
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