Development in Latin America Víctor Ramiro Fernández Gabriel Brondino Editors Development in Latin America

Critical Discussions from the Periphery Editors Víctor Ramiro Fernández Gabriel Brondino Institute of the Humanities and Social Institute of the Humanities and Social Sciences of Litoral Sciences of Litoral National Scientific and Technical National Scientific and Technical Research Council (CONICET) and Research Council (CONICET) and National University of Litoral (UNL) National University of Litoral (UNL) Santa Fe, Argentina Santa Fe, Argentina

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This Palgrave Macmillan imprint is published by the registered company Springer International Publishing AG part of Springer Nature. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Preface

This book is part of an ambitious project that attempts to cross the bor- ders of the Spanish and Portuguese speaking worlds and take to the Anglo- Saxon world a proposal oriented at recovering in a creative, non-dogmatic, and critical way the contributions of Latin American structuralism. From this, we expect to promote a novel lecture about the transformations that are taking place in the global economy and, especially, in its periphery. The origins of the project can be traced back to a workshop held in March 2015 at the Institute of Economic Research of the National Autonomous University of Mexico (UNAM) with financial assistance from the Antipode Foundation. The workshop was coordinated by the Globalization, Knowledge, and Development Program (PROGLOCLODE) of UNAM, the Institute of Humanities and Social Sciences of the National University of Litoral and CONICET (Argentina), and the Institute of Urban and Regional Research and Planning of the Federal University of Rio de Janeiro, and a large group of researchers from different parts of Latin America participated. One of the main conclusions in several discussions and debates of the workshop—especially but not exclusively about the fate of national political projects of the governments that were part of the “Pink Tide”—was about the necessity to strategically recover the contributions that Latin American structuralism made to development theory during the first decades after World War II. Such recovery ought to be dynamic, in the sense of recovering the most original elements of this school and interpel- late them to the new global context.

v vi PREFACE

This inspired the editors to organize and promote a new round of debates in another workshop with scholars belonging to different Latin American academic centers that eventually contributed to this volume. This time the workshop was held at Santa Fe, Argentina, in July 2017. There, the idea of revising central aspects of the evolution of structuralist thought was strength- ened. Specifically, the need to recover the notion of power and domination as crucial categories of the analysis of development. Also, to critically revise other elements of the analysis as well as introduce absent ones. All these tasks were (and still are) in order to make structuralism fruitful again for analyzing peripheral development from the periphery. This revision and update distance us from that followed by neo-structuralism in the early nineties. Neo-structuralism revision downplays pre- cisely those elements we highlight: the conflict dimension of the analysis. Such dilution, in our opinion, has limited this school to understand, pre- cisely, the structural factors that explain why the periphery, although it has been transformed into a dynamic space of accumulation, has generated inside its space new asymmetries and new forms of subalternity, and what measures should be taken to reverse them. Alternatively, by following a different path, this book intends to recover Latin America’s critical thinking tradition and contribute to think novel strategies of development. Although each chapter of this book has a different disciplinary background, it pursues a constructive dialogue among several disciplines belonging to the Social Sciences and tries to offer a holistic view of development. We hope with this book to have advanced one step forward (as little as it may be) in recovering Latin America’s capacity to think for itself, developing its own tools, and implementing its own policy. Even more, in building consciousness of the acritical and colonial assimilation of theories from the North in Latin American academic centers, particularly since the advent of the Washington Consensus.

Santa Fe, Argentina Víctor Ramiro Fernández March 2018 Gabriel Brondino Acknowledgments

This book is not an exclusive work of the authors who participate in it, but also of many people who helped during the process of elaboration. We are deeply grateful to Joel Sidler for his patient and careful editing assistance. We thank Andrea Galeotti, Budi Akmal Djafar, and Marion Werner for reading parts of the manuscript and making thoughtful suggestions, as well as improving the English. We also thank our colleagues of the Research Group on Development, State, and Public Policy of the Institute of Humanities and Social Sciences of Litoral (Santa Fe, Argentina) for sup- port during all the endeavor. Special thanks go to Andrés Cammisi and the State’s Workers Association (Asociación de Trabajadores del Estado). Alina Yurova also deserves special thanks for being interested in this project and opening the doors at Palgrave for publishing. Finally, we would like to thank the National University of Litoral and the National Scientific and Technical Research Council of Argentina and congratulate them for their joint effort of creating the Institute of Humanities and Social Sciences of Litoral, the brand-new institute where this project took place.

Víctor Ramiro Fernández Gabriel Brondino

vii Contents

1 Introduction 1 Víctor Ramiro Fernández and Gabriel Brondino

2 Why Does Structuralism Return to the Forefront? 11 Víctor Ramiro Fernández and Gabriel Brondino

3 The Center and the Periphery in the Structural Logic of the New Capitalism 47 Sebastián Sztulwark

4 The Multi-Scalar Articulation of Economic Development 65 Carlos Antônio Brandão

5 Geopolitics, Geoeconomics, and Development Strategies in the New Millennium 89 Carlos Aguiar de Medeiros and Numa Mazat

6 The State in the Capitalist Periphery: From the Structuralist Vacuum to the Neo-Structuralist Deviations and Beyond 123 Víctor Ramiro Fernández and Emilia Ormaechea

ix x CONTENTS

7 The Possibilities of Industrialization and Structural Change for the Periphery in the Context of Globalization 157 Margarita Olivera

8 Financing Development in the Financial Globalization: Revisiting Old Challenges in a New Context 179 Davide Villani and Nicolás Hernán Zeolla

9 The Structuralism of Prebisch and the Integration of Latin America 215 Armando Di Filippo

Index 237 Notes on Contributors

Carlos Antônio Brandão is Professor of Urban and Regional Planning in the Institute of Urban and Regional Research and Planning at Federal University of Rio de Janeiro (IPPUR/UFRJ). After receiving his PhD in Economics from the Unicamp, he focused on Urban and Regional Planning, acting on the following subjects: Latin American underdevelop- ment, regional development, and urban and regional planning. Gabriel Brondino is Lecturer of Political Economy at The School of Social and Juridical Sciences of the National University of Litoral and Doctoral Fellow of Argentina’s National Scientific and Technical Research Council. He received his MSc in Economic Development in 2016 from the University of San Martin and is a PhD candidate at the University of Buenos Aires. Víctor Ramiro Fernández is Professor of Economic Geography and State Theory in the School of Humanities and Sciences at the National University of Litoral, Argentina. After receiving his PhD in Political Science in 1999 from the Autonomous University of Madrid, Spain, he was appointed researcher in Argentina’s National Technical and Scientific Research Council (CONICET). He is the Director of the Institute of Humanities and Social Sciences of the Litoral (CONICET and UNL). Armando Di Filippo is an Argentine economist, graduated from the National University of Litoral Argentina (1965), and Master in Economic Sciences from the University of Chile (1971). He worked as an international civil servant in UN ECLAC during the period (1970–2000). He

xi xii NOTES ON CONTRIBUTORS has been a visiting professor at several universities in Europe and America, including the Universities of Barcelona (1997–2000), Paris (2001), and Stanford California (2005). He is the author among other books of Desarrollo y desigualdad social en América Latina (1981 Fondo de Cultura Económica) and of Poder Capitalismo y Democracia (2012 Editorial RIL). Numa Mazat is Professor of Development Economics in the Institute of Economics at Federal University of Rio de Janeiro, Brazil. He received his PhD in 2013 from the Federal University of Rio de Janeiro. He was a visiting scholar at Columbia University (2013/2014) and an external consultant to the Brazilian Institute for Applied Economic Research (IPEA) and the CGEE/ECLAC. Carlos Aguiar de Medeiros is Professor of Development Economics in the Institute of Economics at Federal University of Rio de Janeiro, Brazil and a CNPq researcher. He received his PhD in 1992 from the University of Campinas, Brazil. He was a visiting scholar at Cambridge University (2006) and an external consultant to the Brazilian Institute for Applied Economic Research (IPEA) and several United Nations organizations. Margarita Olivera is Assistant Professor of Economic Development at the Institute of Economics (IE), Federal University of Rio de Janeiro, Brazil. After receiving her PhD in Economics in 2009 from the Sapienza University of Rome, Italy, she has been a post-doctoral researcher and Lecturer of Trade at the Masters’ Programs of Economic Development and International Cooperation at National University of San Martin, Argentina from 2011 to 2014. She has been a visiting scholar at the JNIAS Institute of the Jawaharlal Nehru University, New Delhi, India in 2010, and a post- doctoral researcher and Lecturer of Economic Policy at the University of Pavia, Italy (2009–2010). Her areas of research are regional integration, trade and geopolitics in Latin America, and theories of growth and economic development. Emilia Ormaechea is Lecturer of Globalization and Development at The School of Social and Juridical Sciences of the National University of Litoral and Doctoral Fellow of Argentina’s National Scientific and Technical Research Council. She received her MSc in Social Science in 2018 from the National University of Litoral and is a PhD candidate in Economic Development at the National University of Quilmes. NOTES ON CONTRIBUTORS xiii

Sebastián Sztulwark is a researcher at the Institute of Industry, National University of General Sarmiento, and at the National Scientific and Technical Research Council of Argentina (CONICET). He obtained his PhD in Economics from the National Autonomous University of México (UNAM). His fields of specialization are knowledge economics and development economics. Davide Villani is a PhD candidate at the Open University, UK, and asso- ciate lecturer at Goldsmiths College. His research interest ranges from financialization, structural change, and economic development. His PhD thesis focuses on the increasing corporate lending of the corporate sector among developed countries. Nicolás Hernán Zeolla holds an MSc in Economic Development from the University of San Martin and is a PhD candidate at the University of Buenos Aires. He is a doctoral fellow at the Centre for Studies on Economics and Development, Institute of High Social Studies, UNSAM, and CONICET. His research fields are international macroeconomics and finance, especially international capital flow regulation, corporate debt issuance, and asset structure. He is lecturer in the University of Buenos Aires, the National University of Avellaneda, and the National University of Lomas de Zamora. List of Figures

Fig. 7.1 GDP per capita (2010 US dollars). 1960–2016. Selected countries. Source: Author’s own elaboration based on World Bank data 163 Fig. 8.1 Stock of financial wealth in the world economy. 1970–2010. Source: Authors’ own elaboration based on Lane and Milesi- Ferreti (2007). Note: Latin America, 8 main economies, Argentina, Brazil, Chile, Mexico, Colombia, Peru, Venezuela, Uruguay. Developed: United States, United Kingdom, Germany, France, and Japan 190 Fig. 8.2 Gross capital flows in the world economy. 1970–2007. Source: Authors’ own elaboration based on Broner et al. (2013). Note: Latin America, 8 main economies, Argentina, Brazil, Chile, Mexico, Colombia, Peru, Venezuela, Uruguay. Developed: United States, United Kingdom, Germany, France, and Japan. Inflows are the net purchases of domestic assets by non- residents; Outflows are net purchases of foreign assets by domestic agents 191 Fig. 8.3 Bond issuances in Latin American economies. 2001–2016. Source: Authors’ own elaboration based on BIS debt statistics 192 Fig. 8.4 World net Official Development Assistance received as % of GNI by Region. Source: Authors’ own elaboration based on OECD data 202 Fig. 8.5 World net Official Development Assistance received as % of GNI by Region. Source: Authors’ own elaboration based on OECD data 203

xv List of Tables

Table 4.1 Three schools of thought and their structure 71 Table 5.1 Average growth rate of GDP (constant prices) of advanced economies and emerging markets and developing economies (1980–2016) 96 Table 5.2 Average growth rate of GDP (constant prices) by regions of the periphery (1980–2016) 97 Table 5.3 Average growth rate of Chinese trade with other BRICS countries 99 Table 5.4 Average growth rate of GDP (constant prices) of South American countries (1980–2016) 101 Table 5.5 Average growth rate of GDP (constant prices) of BRICS countries (1980–2016) 109

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