The Cambridge Economic History of Latin America Edited by Victor Bulmer-Thomas , John Coatsworth , Roberto Cortes-Conde Index More Information

Cambridge University Press 978-0-521-81290-0 — The Cambridge Economic History of Latin America Edited by Victor Bulmer-Thomas , John Coatsworth , Roberto Cortes-Conde Index More Information

INDEX

Adelman, Jeremy, 175, 192, 193, 205 modernization of, 356, 357, 532 Africa No-Till, 364, 518 foreign investment in, 92 peasant, 365, 485, 529 slavery in, 26, 380, 527 Peruvian, 526–530 Age of Empire, 99 prices v. industrial goods prices, 257 Agrarian Credit Bank, 222 protectionism, 159 agricultural production, 503–533 rainfall’s influence on, 488 characteristics of, 503 reduced profitability of, 534 domestic market, 504 research organizations, 492 FAO’s statistics of, 504 savannas and, 359–361 agriculture. See also agriculture, commercial; soybean’s impact on, 360 cattle ranching; coffee; farmers; grain; technology and, 342, 488 land use territorial expansion of, 352 area, total, 361–362 transformation of, 361 Brazil’s expansion of, 357, 493, 511 wheat, 516 Central American import-substitution in, 115 agriculture, commercial characteristics of, 483, 535 expansion of, 361 Chilean, 518–520 intensification outside savannas, 361–364 conservation v., 531 Albert, Bill, 558 Cuban, 511 alcohol, gasoline v., 512 employment in, 408 Allende, Salvador, 442 expansion of, 486 Alliance for Progress, 124 export tax influence on, 517 educational support by, 448 forest land and, 493 Amazon basin GATT and, 138 colonization of, 501 Great Depression and, 496 conversion of, 532 growth strategies in, 493–497 emigration to, 404 illegal crops of, 365 Peruvians moving to, 530 importance of, 483, 484 push into, 530, 533 Incas and, 526 American continent intensification of, 352 Cretaceous period of, 338 interior movement’s impact on, 357 deserts/semideserts of, 340–341 low technology and, 357 eastern flank geography of, 338 Mexico’s, 520–526 geographical features of, 335–341 military governments and, 360 high plateaus of, 340 mineral extraction v., 484 Jurassic period of, 335

729

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730 Index

American continent (cont.) Paraguayan War funded by, 65 mountain regions of, 340 policy inconsistencies of, 157 Precambrian rocks of, 336 railroad’s influence on, 269, 310, 317, 318 savannas, tropical, 340 rising export prices of, 112 temperate/subtropical regions, 340 Rothschild Committee and, 78 tropics of, 339 trade protection of, 551 Upper Tertiary period of, 339 2001 debacle, 99 An Ideal Husband (Wilde), 61 wheat agriculture of, 516 Andean Common Market, 124 World War I influence on, 254 Andean countries Argentine Institute for the Promotion of Trade Kemmerer missions to, 221 (IAPI), 576 land use in, 493 Argentine International Trade Under Inconvertible Andean economies, 14 Paper Money (Williams), 261 Andean Mountain slopes, fragility of, 338 Argentine Pampas, 20 Andean Pact/Community, relaunching of, 150, armed forces, diminishing role of, 209 160 Asia. See also East Asia Antioqueno˜ migration, Colombia’s, 203 financial crisis of, 144 Appleby, John, knotting device of, 345 foreign investment in, 92 Argentina workers of, 26 animal products of, 515 assets. See also income-earning assets Baring Crash in, 76, 77, 78, 261 prices, returns and, 605–607, 629–636 beer industry of, 546 productive use of, 606 belle epoque´ of, 204, 547 use of, 620–629 biotechnology leadership of, 518 Astorga, Pablo, 53 Cafe de Conversion´ of, 107 Atlantic economy civil codes of, 190 investment in, 16 commercial code of, 191 Latin America’s insertion into, 343 Constitution of 1853, 186 Augustan age, 252 creation of, 186 Australia crops of, 515 gold discovered in, 280 Currency Board’s reopening in, 223 immigration policy of, 397–400 customs resources increase in, 213 Aymara people, 472 development strategy of, 77 economic growth in, 517 Bairoch, Paul, 38 exchange control, 111 Baker Plan, 145 export boom, 116 balance of payments exports of, 514 crisis, 131 foreign capital’s influence on, 83 difficulties, 115 foreign debt serviced in, 115 balkanization, 24, 31 foreign trade expansion of, 213 Bank of Brazil (Banco do Brasil ) frontier settlement of, 204 founding of, 211 gold standard and, 107, 217 monopoly issued by, 233 Great Britain linked with, 112, 291 rediscount authorization of, 242–243 immigration to, 515, 516 Bank of England import substitution favored by, 517 gold standard and, 256 industrial development in, 545–547, Issue Department of, 215 562 Bank of Mexico industrialization limited in, 291 increasing reserve ratio of, 244 inflation/devaluation cycle in, 517 Pani’s founding of, 222 Italian immigrants in, 412 Bank of the Republic, credits granted by, land use in, 492 227 landed oligarchy of, 516 banks monetary system of, 214 government-owned industrial financing of, non-default of, 85 581–582 non-tax resources of, 229 systems, MNCs and, 580

Index 731

Baring Crash bond(s) Argentina’s, 76, 77, 78, 261 Brady, 151 steps leading to, 214 foreign, 152 Uruguay influenced by, 76 growth of, 151 Battle of Ayacucho, 59 markets, fickleness of, 163 Bauer, Arnold, 24 Mexican, 272 labor shortages and, 279 spread, external, 78–79 Bautista Alberdi, Juan, aphorism of, 277 yields, 70 Beatty, Edward, 284 boom/bust cycles, 95 export growth, industrialization, and, 287 boundary disputes, 196 behavior Bourbon policy, Spain’s, 189 cooperative, self-enforcing, 171 Brady Plan, 145–146, 163 sustained/equilibrium, 170 Brazil belle époque African slaves in, 26, 77 Argentina’s, 204, 547 agreement of 1934, 120–121 foreign capital’s influence on, 423 agricultural expansion in, 357, 493, 511 growth during, 13 Bank of, founding of, 211 inequality during, 49, 53 civil code of, 191 tariffs during, 34–46 coffee production/exports from, 202, 290 Bello, Andres, 434 commodity price maker, 106 Royal Academy of the Language and, 436 Council of State of, 202 Universidad de Chile and, 436 DFI and, 158 Berry, Wendell, 530 Encilhamento of, 77 Bertola, Luis, 288 exchange controls established by, 227 Bertram, Geoffrey, 262 export share of, 159 Bessemer process, railroads and, 303 failures of, 158 Big 3 (Argentina, Brazil, Mexico) fiscal export incentives and, 129 default crisis, 95 foreign reserves of, 107 international bank lending to, 93–95 forest losses of, 355 bilingual education, 473 Funding Loan of, 78 biotechnology, Argentina’s leadership in, 518 GATT joined by, 123 birth rates GDP of, 130 economic growth and, 422 gold standard and, 77, 210, 217, 260 education and, 422 immigration policy of, 398, 400–401, 406, 425 immigration and, 422 import duties in, 30 urbanization and, 422 industrial capacity in, 110 Black Friday, Wall Street’s, 562 industrial development in, 543–545 black market industrial machinery imports of, 554–555 premiums, 87 industrial tariffs of, 550 rates v. official rates, 87 metal-working/machinery industry of, 566 Blainey, Geoffrey, 14 National Development Plan of, 241 blockade, economic, Great Britain’s, 117 Niemeyer’s report on, 107 Bol´ıvar, Simon,´ 434 obstacles in, 158 Bolivia Ouro Preto monetary/banking reform of, 214 educational responsibility of, 434 Plan de Metas of, 230 land reform of, 499–500 population growth of, 279 Liga Nacional del Magisterio of, 447 port access of, 324 minifundistas of, 529 pre-rail transport system of, 300 National Bank, founding of, 218 railroad construction/expansion in, 309–310, Ordenanzas of Bilbao reinstatement, 311, 318 192 recession of, 77 Peru’s confederation with, 190 republican regime established in, 211 silver devalued in, 215 river systems of, 299 targeting of poor by, 472–478 securities market of, 552 Bolivian Revolution, 443 slavery in, 26, 77

732 Index

Brazil (cont.) postcolonial expansion of, 59 sovereign issues honored by, 299 recovery of, 78 sugar in, 511 capitalism, 141 SUMOC and, 235 capitalists, Stolper-Samuelson theorem and, trade reductions in, 112 43–45 transport subsidies of, 400–401, 406 Cardosa, Fernando Aenrique, 20 Volta Redonda steel works of, 565 Caribbean Free Trade Area water plants of, 231 (CARIFTA/CARICOM), 124, 160 Bretton Woods conference relaunching of, 150 collapse, 93 Carranza, Venustiano, 219 IMF and, 137 Carteira de Redescuento (CARED), 235, 243 ITO and, 137 Castelo Branco, Humberto, administration of, system, 87 243 World Bank and, 137 Castro, Fidel, sugar and, 514 burning Catholic universities, public v., 467 reducing regeneration through, 361 cattle ranching savanna influenced by, 361 Argentina/Uruguay’s pampas region and, 349, 514–518 cacao, 503 breeders, 350 Caixa de Estabilizaçao˜ (CE), Currency Board fatteners, 350 and, 223 Mexico’s, 350 Caixa de Mobilizaçao˜ Bancaria (CAMOB), requirements for, 516 235 savannas and, 359–361 California, 201 Southern Cone, 349–351 Camdessus, Michel, 146 uprisings from, 351 CAMOB. SeeCaixa de Mobilizaçao˜ Bancaria Cattleman’s Association (Sociedad Rural Campos, Roberto, 236 Argentina), 350 Central Bank designed by, 243 CE. SeeCaixa de Estabilizaçao˜ Canada, mass migration to, 397 cement production, 565 capital. See capital controls; capital flows; capital Centeno, Miguel, 30 markets; human capital; physical capital; Central America, agricultural social capital import-substitution in, 115 capital controls Central American Common Market (1960), 124 adoption, 84 relaunching of, 149 countries not adopting, 84 Central bank, Brazil war leading to, 81 Campos’ designing of, 243 capital flows, 3 cost generated by, 237, 243 abundant, 163 foreign trade financing by, 229 acceleration in, 142 institutions backed by, 222 developing countries and, 90–91 public sector credit from, 244 first frenzy of, 59–61 rediscounts, 232 globalization and, 93 central banks, 246 Great Britain’s, 72 Centro de Reforma Agraria (CERA), 501 international investments as, 57 Cheng Yang, Maw, 285 interruptions of, 3, 73, 109 children, indigenous portfolio capital and, 143 marginalization of, 427 return of, 125 progressive educational ideology and, 431 scope of, 69 Chile tightening of, 77 academic’s flight from, 444 U.S. restriction on, 142 agriculture of, 518–520 capital markets. See also world capital markets bondholder’s agreement with, 120 access, London’s, 99 climate of, 518 consequences of shifting, 83 Constitution of, 186 globalization in, 92, 93 defaults of, 108 northwestern Europe, 59 development performance of, 156

Index 733

educational missions of, 437 codes, reforming of, 188, 189 educational reforms of, 446 Codigo Larges,Mexico’s, 193 export reduction of, 105 Coelho Barros, Amir, 285 fundos of, 519 coffee GATT joined, 123 agreements, 534–535 gold standard and, 107, 260 Brazilian, 202, 290 growth, export-led, of, 520 Costa Rican, 509–511 indigenous people (Mapuches) of, 474 early expansion of, 347–349 industrial development of, 547 economy, growth of, 505–511 industrial investment by, 561 environmental impact of, 348 Kemmerer mission and, 220 exporters, 106 land reform in, 500–501 exports, growth of, 509 landed oligarchy of, 518 falling prices of, 117 Ley Organica´ Constitucional de Ensenanza˜ of, forestland influenced by, 507 446 Great Depression’s influence on, 508 livestock of, 519 growing, 508 manufacturing growth of, 561 immigration’s impact on, 403 mining revenues of, 225, 519 importance of, 505 Pacific War and, 212 introduction of, 347, 508 port bottlenecks in, 323 nutrient needs of, 348 public education developed by, 437 overseas immigrants and, 393 trade improvements in, 112 price recovery, 111 vegetables/fruit of, 518–520 price support for, 110 water access of, 519 railroads, 271, 319 Chilean Economic Development Agency species of, 506 (CORFO), 118 taxes, 211 public utilities created by, 231 three-tiered growth system of, 348 China valorization scheme, 507 emergence of, 139 wages and, 390 immigrants of, 378, 379, 396 World War II’s influence on, 507 Church, Catholic coins, silver, 210 challenge to, 433 Cold War, 448 educational dominance of, 433 Colombia private universities v. Catholic universities, Antioqueno˜ migration of, 203 467 Constitutional reform in, 446 cigarettes defaults, production of, 543, 546–547 government centralized in, 212 taxing of, 212 “growth through debt” period of, 220 civil codes internal conflicts in, 31, 508 reform of, 188 Kemmerer’s visit to, 106 Uruguay’s, 190 land appropriation in, 274 Venezuela’s, 190 Land Law of 1936, 203 civil law Liberal Revolution of, 31 common law v., 191–193 National Bank of, 211 principle, 191 Ocampo and, 286 Roman, 191 One Thousand Days’ War of, 216 civil wars, 342, 343 railroad’s social saving for, 315 Clark, Gregory, 49 silver standard in, 262 coastal resources social savings of, 272, 315 endangerment of, 372 Special Exchange Account of, 223 fragility of, 371 Stabilization Fund of, 223 water and, 371–372 tax reform, 224 Coatsworth, John, 58, 59, 174 wartime inflation in, 216 Cobb-Douglas production function (Lucas), 89 Colombian Exchange, 275 Code Napoleon,´ 192 Colonial backdrop, 58–59

734 Index

colonization construction/metal-working, 565 Amazon basin’s, 501 contractarian interpretation early years of, 396 completeness of, 177 European immigration and, 380–381 of constitution, 177 failure of, 58 convergence, economic, 250 projects, 395 Convertibility Act (1899), 227 colono contract, 390–392 convertibility system, 261. see also Columbus, Christopher, 512 inconvertibility commitment problem, 177–182 abandoning of, 227 commodity exports, 2, 105 Mexico’s suspension of, 221 total exports v., 122 World War I and, 220, 221 commodity lottery, 280, 308 copper, export of, 374 commodity prices CORFO. See Chilean Economic Development convergence of, 32 Agency manufacturing prices v., 257 corporations, foreign, 561 relative factor, 649 Cortes´ Conde, Roberto, 261 common law, civil law v., 191–193 Costa Rica composiciones (land grants), 196 coffee of, 509–511 CONDECOR, exchange rates managed by, 576 education law (Ley Fundamental de Confederacion´ Obrera Regional de México (labor Educacion´ ) in, 442–443 federation), Mexico’s, 568 Intel’s factory in, 160 conservation, agriculture v., 531 rural education’s expansion in, 471 conservative educational ideology trade reductions in, 112 colonial, 432 cotton textile industry elite class and, 431 growth of, 542, 544 legacies of, 431 size estimates of, 542–554 progressive educational ideology v., 431–432, tariffs, 550, 569 438 Council of State, Brazil’s, 202 trends, 430 crawling peg rules, 125–126 work orientation of, 431 credit policies, 241 constitution(s) Cretaceous period, 338 consecutive, 183 crisis, balance of payments, 131 constraints, difficulties establishing, 180 cropland, 342 contractarian interpretation of, 177 crops, illegal, 365 cycling, 182, 183 Crosby, Alfred, 275 dictatorial regime’s suspension of, 176 Cuba emergency powers (states of siege) of, 176, 181 agriculture in, 511 European, 187 dependency rates of, 423 federalist, 203 education law in, 443 formulas for, 181 free labor transition by, 404 foundations, 175 GATT joined by, 123 framers, liberal, 177 immigration and, 405, 513 historical significance of, 175 land reform of, 500 incompatibility of, 186–188 literacy campaign in, 443 instability of, 186 menace of, 102 inviolability, ideology of, 180 railroads and, 269 Latin American (1810–2000), 176, 178 revolution of, 443 limits, 180 socialist revolution of, 443 Mexican, 183, 194, 523 Soviet Union trade with, 123 presidential powers in, 187 Spanish immigrants in, 411 rights, suspension of, 181 sugar centrales of, 205 Venezuelan, 182 sugar in, 511 Constitution of 1853, Argentine Republic’s, 186 world economy’s entrance by, 123 Constitution of 1917 (Mexico), Article 123 of, 185 Cubatao˜ city, “valley of death,” 354 constraints, political/economic, 574 Cueva, Augustin, 20

Index 735

cultural determinism, 169 egalitarian influence of, 54 currency. See also domestic currency; gold tariffs inducing of, 31 standard deindustrialization controls, 87 fears, 42–43 depreciation, gold and, 257 globalization’s inducing of, 42 home, as gold, 255 tariff rates and, 42 silver, 210 della Paolera, Geraldo, 261 Currency Board, 217 DeLong, Bradford, 291 Argentina and, 223 democracy, education and, 463 CE and, 223 demographic transition, 162 closing of, 227 dependency formation of, 215 model, decline of, 250 funds, 220 thinking, 169 success of, 217 dependency rates customs Cuba’s, 423 duties, elimination efforts of, 210 immigration and, 423–424 external, 210 desarrollismo. See modernizing ideology revenues, 30, 284–285 determinists, institutional, 20–21 cycles, boom/bust, 95 devaluation, foreign exchange, 110, 115 development, state led (Estado Docente), 439 dams, construction of, 370–371 consolidation of, 450 de Freitas, Teixeira, 190 establishment of, 442 de Paiva Abreu, Marcelo, 290 development theory, 34 de Rosas, Juan Manuel, 204 DFI. See direct foreign investment de Tocqueville, Alexis, 169 D´ıaz Fuentes, Daniel, 282 debt D´ıaz, Porfirio buyback of, 86 “cronyist” strategy of, 184 forgiveness, 86 defeat of, 185 ranking of, 151 economic growth sought by, 344 Spanish America default of, 308 government consolidation by, 211 unilateral refinancing of, 108 rise to power of, 183 debt crisis D´ıaz regime causes of, 135 accomplishment of, 200 consequences of, 583 credibility building by, 199 end of, 145 survey conducted by, 200 improvement after, 153–154, 155 D´ıaz-Alejandro, Carlos, 52 1980s, 135, 138 Dillingham Commission, 406 oil shocks and, 102, 128–133 direct foreign investment (DFI) default crisis, Big, 95 Brazil and, 158 defaults discrimination against, 150 Chilean, 108 hostility to, 150 Colombian, 62, 109, 116 importance of, 143 government, 66 inflows of, 147 isolated, 75 Latin American (1929) share of U.S., 104 Mexican, 102, 108 mineral extraction and, 152 private sector, 66 stock surges of, 150 deficits, 226 direct investment, foreign. See foreign direct deflation, 224 investment (FDI) tariff’s influence on, 41 disorder, political, economic growth and, 175 deforestation distance figures regarding, 356 transport revolutions, world markets and, rate of, 355 14–19 reasons for, 356 tyranny of, 32 deglobalization Divisia (shifting weight) Index, 557 conflicts causing, 29–32 dollar shortage, dollar plenty and, 102, 118–121

736 Index

dollarization Church v. State, 442 de facto, 154 comparative levels of, 428 de jure, 155 conflicting ideologies of, 427 domestic currency Costa Rica and, 442–443, 471 overvaluation of, 107 Cuba and, 443 switch from, 152 democracy and, 463 dropouts, school, 455–456 desarrollismo (modernizing ideology) of, Dutch disease, 48, 288 440 currency appreciation as, 240 duration of, 449 ECLAC and, 477–480 Earth economic reorganization and, 433, 448 closed system of, 331 equality in, 442 energy flows of, 330 expansion, politics of, 445 East Asia fertility declines and, 623 economic miracles of, 93 gaps in, 428, 614 NICs, 89 globalization and, 7 Echeverr´ıa administration Gonzales Flores and, 442–443 foreign debt increase during, 239 indigenous people’s, 434, 471 Mexico’s, 238, 239 inequality in, 456, 477–479, 614 ECLAC. See Economic Commission for Latin initiatives, 435–436, 477–478 America and the Caribbean literacy and, 456 ecological regions, 339 males/females and, 612–613 Economic Commission for Latin America and Mexican, state-led, 433 the Caribbean (ECLAC), 1 national systems of, 435, 438 education initiatives and, 477–480 opportunity struggles in, 440, 477–480 revival of, 650 Peru and, 444 work of, 5–6 policy-implementation gap in, 439 The Economic Development of Latin America in politicization of, 428–429, 437–445, 447, the Twentieth Century (Hofman), 252 477–480 ecosystems, natural pre-Colombian, 432 biological subsystem of, 334 progress in, 610 defined, 330 progressive, ideology of, 429–430 human economic system v., 331, 335 quality of, 441, 470 physical assemblage of, 334 returns to, 629–633 solar energy and, 331 segregation in, 439–440 of South America, 336 for self-reliance, 432 subsystems of, 334 social order legitimized by, 433 Ecuador, tariff reductions of, 148 South Korea and, 607–620 Eden-Malbran´ agreement (1936), 113 state-led development of, 439 Educacion´ Comun´ (Sarmiento), 436–437 state’s relation to, 429, 430, 441 education. See also conservative educational Taiwan’s educational progress, 607–620 ideology; education reforms; educational transnational exchange support of, 436 attainment; elementary education; primary twentieth-century reforms in, 439 education; progressive educational undermining expansion of, 439 ideology; public education; rural UNESCO and, 448, 462, 477–479 education; school systems; secondary UNICEF and, 443, 477–480 education; universities, private universal primary, 434 accessibility of, 434, 440 window of opportunity, 645 Alliance for Progress support of, 448 women’s labor force participation and, alternative modalities of, 470 620–627 bilingual programs of, 473 education reforms, 429, 438 birth rates and, 422 funding of, 476–477 Bolivian responsibility to, 434 educational attainment Chile and, 437, 446 disparities in, 458, 610, 614–616 Church dominance in, 433 ethnicities and, 458–460

Index 737

increasing, 454 environment women v. men and, 454 agriculture’s impact on, 332 EEC. See European Economic Community characteristics, introduction, classification of, effect, specific-duty, 41 334–341 elementary education coffee’s impact on, 348 accessibility of, 442 defined, 329 purpose of, 442 development and, 330 reform in, 463 economic activities impact on, 365 student fighting and, 465 economic history of, 329 EMBRAPA. SeeEmpresa Brasileira de Pesquisa energy use impact on, 368–371 Agropecuaria factors influencing, 333 emigrants geographical characteristics and, 332 destination choices of, 393–394 globalization of, 331–332 goals of, 411 globalization’s impact on, 331–332 emigration growth’s impact on, 354 Amazon Basin and, 404 henequen’s impact on, 346 benefits of, 406 human influence on, 332, 334 NewWorld, 379 industrialization’s impact on, 331–332 selectivity in, 414–415 intensification of, 364 employment land use’ impact on, 332–333, 344 agricultural, 408 mining’s influence on, 372 opportunities, 606 1950–2000 and, 351–354 Empresa Brasileira de Pesquisa Agropecuaria oil exploration’s impact on, 372 (EMBRAPA), technologies developed by, ranching’s impact on, 351 532 technology’s influence on, 335, 376 Encilhamento,Brazil’s, 77 transformations of, 352 endowments equality, educational, 442 as fate, 19–23 equity, inflationary financing and, 247 human capital, trade and, 638–641 Esboço de codigo´ civil (deFreitas), 190 inequality and, 642 Estado Docente. See development, labor, 640 state-led land, physical capital and, 641 estancias, leasing land from, 205 physical capital and land, 641 Estenssoro, Victor Paz, 443 resource, specialization, trade and, 19–23 ethanol, sugar and, 512 unskilled labor, 641 Euro-dollar market world markets, patterns of development and, boom, 109 23–28 fund availability, 129 energy loans raised in, 128 consumption, 331, 368 Europe Earth’s flow of, 330 colonization of, 380–381 fossil, 330 constitutions of, 187 hydroelectric, 370 economic contraction by, 562 as principal export, 373 industrialization of, 383 solar, 331 machinery manufacturing in, 560 use, environmental impact of, 368–371 post-war payment difficulties, 120 enganche (labor contracting), 278 European Economic Community (EEC), tariffs Engerman, Stanley, 21, 171–173 of, 574 three-economy typology of, 21–22 exchange constraints, 115 Engerman-Sokoloff model, 206 Exchange Control Committee, 226 coercion’s use in, 172 exchange controls strength of, 173 adoption of, 108 engine, internal combustion, 324 Argentina’s, 111 entrepreneurs Brazil’s establishing of, 227 dwindling capital’s influence on, 83 loosening of, 111 immigrants as, 416, 417 exchange market, 111

738 Index

exchange rate(s) FAO. See Food and Agriculture Organization basis of, 119 fares, transatlantic, 384–385 changing values of, 240 farmers CONDECOR management of, 576 displacement of, 358 distortions, 119 ownership by, 206 establishing multiple, 246 peasant, illegal crops and, 365 experimentation, 144–150 protection for, 530 floating, 259 regard for, 530 gap, 225 FDI. See foreign direct investment gold’s influence on, 251 Federal Reserve model, U.S., 222 IMF and, 119 federalism, 187 management, 576 fertility multiple, 577 decreased, 623 multiple regimes, 121 factors affecting, 622–626 overvaluation of, 108, 119, 288 fertilizer, chemical, 364, 533 policy, differing opinions about, 154, 155 FGT index, poverty and, 599 pressure, 87 FI. See foreign investment regimes, abandoning of, 125–126 financial system, requirements for, 551 revaluation of, 111 financing, 232 expenditure(s) fiscal policy, 153–154 policies, 225 fishing, 372 social, increase of, 219 Fishlow, Albert, 259 export(s). See also growth, export-led FitzGerald, Valpy, 53 agricultural, 44–45 flag, following of, 99 animal, 505 Gonzales Flores, educational reforms of, boosting, 573 442–443 Brazil’s, 159 Food and Agriculture Organization (FAO) cereal, 504 agricultural production statistics by, collapse in, 563 504 developmental model based on, 343 forest inventory by, 355 diversification, import substitution v., Ford, Alec, 256 123 skepticism of, 263 diversity, 24, 103–121 foreign capital economies, Augustan age of, 252 Argentina influenced by, 83 falling value of, 105 belle epoque’s´ influence on, 423 fruit, 504 benefits of, 75 Mexico’s, 103, 159, 164 ebb/flow of, 92 mineral, 45 Latin America without, 76 oligopolistic view of, 350 postwar period and, 86 pessimism, 120–121 foreign debt policies, mid-1960s, 125 crisis, history of, 103 primary product, 23, 26 Venezuala’s redemption of, 109 promotion, 115, 125 foreign direct investment (FDI) railroads influence on, 270, 318 attracting, 122 recovery (1932–1937), 112 GDP and, 572–573 reducing incentives to, 120 hostility to, 136 settler v. tropical v. highland, 28–29 increasing (1914–1930s), 82 specialization, 23 stagnation, 627 temperate climate, 27 foreign exchange trends, 105 devaluation, 110, 115 external context, 137–144 regimes, refurbishing of, 126 foreign investment (FI), 3 factor endowments, 19 African, 92 income distribution and, 636–642 Asian, 92 Faletto, Enzo, 20 gap filled by, 89

Index 739

GDP and, 82, 93 multilateral trading system, 86 promotion of, 122 negotiations of, 86 foreign loans as “rich man’s club,” 123 interruption of, 109 rules of, 129 mid-1928 halting of, 104 success of, 138, 140 foreign reserves Uruguay Round and, 139 Brazil’s, 107 World Trade Organization creation by, 7, growth of (post 1942), 118 139 foreign trade Generalized System of Preferences, United Argentina’s expanded, 213 Nations Conference on Trade and Central Bank financing of, 229 Development’s (1964), 123 decline in, 223 geography, 298–301, 487 growth of, 216, 540 German submarine activities, 117 industrial growth and, 540 Germany, Nazi, 113 forests, 341, 365–368 Gini index agriculture and, 493 poverty and inequality measured by, 589–590, Brazil’s loss of, 355 598 coffee’s influence on, 507 Thailand and, 618 logging and, 368 Glade, William, 19 protecting of, 358 global capital market integration surface areas of, 365–366 increase of, 57 fossil energy, 331 twentieth century, U-shaped, 58 Europe, U.S., Japan, import of, 331 globalization. See also deglobalization human society and, 330 adjustment to, 164 four dragons (Hong Kong, Singapore, advancing of, 148 South Korea, Taiwan), 141 capital flows and, 93 free trade capital market, 92, 93 postwar reclamation of, 17 deindustrialization and, 42 Free Trade Areas of the Americas (FTAA), early phases of, 137 150 economics of, 58, 80, 652–653 Frei, Eduardo, 442 education and, 7 freight rates, 18 environment and, 331–332 French Revolution, 434 exploitation of, 647 frontier economies, 23–24 factor demand and, 52 FTAA. See Free Trade Areas of the first era of, 99 Americas growth and, 11–14 Fundidora Monterrey,Mexico’s, 543, 549 Heckscher-Ohlin model of, 52 Funding Loan, Brazil’s, 78 income distribution and, 651–652 fundos, Chile’s, 519 industrial performance/policy and, 653 Furtado, Celso, 20 inequality and, 50–55 Latin American regions of, 20 Mexico influenced by, 157 three-economy typology and, 21 natural resources and, 4 product market’s integration and, 141 gasoline, alcohol v., 512 shifts in, 647 GATT. See General Agreement on Tariffs Spain and, 58 and Trade trade liberalization and, 150 GDP. See gross domestic product World War I’s influence on, 4 General Agreement on Tariffs and Trade gold (GATT) Australia’s discovery of, 201, 280 agriculture and, 138 California’s discovery of, 201 Brazil, Cuba, Chile, joining, 123 currency depreciation and, 257 codes, 132 exchange rate influenced by, 251 fiscal rebates, 132 home currency as, 255 limitations of, 137 shipments, roads and, 298 Mexico’s joining of, 141, 148 World War I’s influence on, 263

740 Index

gold standard, 4 Great Britain abandonment of, 263 Argentina linked with, 112, 291 adherence to, 258–259, 287 economic blockade of, 117 adoption of, 80, 217 financial influence, 106 Argentina’s, 107, 217 foreign economic policy of, 112 Bank of England and, 256 foreign investment embargoes of, 81 Bertram and, 262 GDP of, 11 Brazil and, 77, 210, 217, 260 global capital market (pre-1914)of,81 capital mobility facilitated by, 70 gold standard abandoned by, 107 Chile and, 107, 260 imperial preferences of, 84 death throes of, 81 investments of, 104 departure from, 226 meat market of, 349, 351 D´ıaz Fuentes and, 282 public utility investments of, 115 downside of, 257 Great Depression end to/resumption of, 81, 84 agriculture and, 496 Great Britain and, 107 coffee influenced by, 508 Great Depression and, 263 consequences of, 562 growth and, 256 further shocks from, 111–118 Hume and, 255 GDP and, 7 implications of, 250–251 gold standard and, 263 Latin American periphery and, 254–264 industrialization during, 47, 562, 564 Mexico and, 107, 216 prices collapse during, 32 1920s, 81 recovery (1933–1937)from, 111–118 operational standards of, 256 tariff rates and, 13 peripheral countries and, terms of trade from independence to, Peru and, 106, 217, 218 32–34 policies based on, 5, 70 uneven impact of, 104–111 Quiroz and, 262 Wall Street boom and, 104 railroads and, 265–270 Great Expansion (1900–1914), 216–218 rebuilding (1920s) of, 81 Grilli, Enzo, 285 rules, 85 gross domestic product (GDP) tariffs raised on, 45 Brazil’s, 130 Thorp on, 262 decomposition of, 114 Uruguay and, 217 estimates per capita, 53 The Gold Standard 1880–1914.Britain and FDI and, 572–573 Argentina (Ford), 256–257 FI and, 82, 93 Gomez-Galvarriato,´ Aurora, 568 foreign investment relative to, 93 Gonçalves, Reinaldo, educational reforms of, Great Depression and, 7 285 growth rates (1870–1930), 254 goods, moving of, 18 “lost decade” (1980s), 135 Goodyear, Charles, vulcanization developed by, “lost half decade” of, 156 531 peaking of (1929), 109 governments railroad’s contribution to, 269 authoritarian, 444–445 real wages and, 55 borrowing abroad by, 583 rich v. poor gap, 28 defaults of, 66 selective growth of, 12 financing of, 246 trade/foreign investment ratios to, 80 military, protectionism and, 572 U.S. recession’s influence on, 116 oligarchic, 44 World War II and, 577 political risks of, 176, 178 growth economic power consolidated by, 209 Argentina’s, 517 presidential v. parliamentary, 187 birth rates and, 422 property rights enforced by, 198 conditions for, 4 tax collecting power of, 210 globalization and, 11–14 unitary, 187 gold standard and, 256

Index 741

import substitution and, 122 Heckscher, Eli -inequality relationship, 603 globalization model of, 52 inflationary financing and, 228–244, predictions of, 50–51 247 Heckscher-Ohlin theorem political disorder and, 175 globalization and, 52 population growth and, 419 MNCs and, 140 poverty, inequality and, 599–605 hegemony, U.S., 352 railroad, 304–306 henequen, 503 real exchange rate depreciation and, disappearance of, 521 564–565 environmental impact of, 346 sources/rates/patterns of, 264–280 expansion of, 344 technology and, 342 haciendas, 345 with stability, 235–244 harvester combine’s impact on, 347 growth, export-led International Harvester Corporation and, 346 of Chile, 520 international market for, 345 industrialization and, 46, 287, 539–562 Mayan domestication of, 345 limits of, 48–50 Mexico’s commercialization of, 347 of Mexico, 541 technology’s impact on, 345 modern industry and, 47 U.S. and, 346 stability achieved during, 183 usage of, 521 strategy, 495–496 Yucatan’s monopoly on, 346 growth, industrial historians accelerating pace of, 539 structuralist/dependency school, 1 explanation for, 47 training of, 1 foreign trade and, 540 History of Prices Since the Year 1850 (Mulhall), 251 high tariffs v., 47 Hofman, Andre´ A., 252 immigration’s influence on, 416 Holden, Robert, 200 limits of, 48–50 Hoover administration, 106 Mexican Revolution and, 558 Hoy, Theresa van, railroad study of, 265 slowdown in, 554, 558 human capital technologies, 49 accumulation, 607–616 growth, population economic recovery and, 448 Brazil’s, 279 endowments, trade, and, 638–641 economic growth and, 419 evolution of, 638 immigration and, 418–424 female labor force participation and, 623 immigrants as, 414 Haber, Stephen, 288 labor force participation and, 620–627 hacendados (estate owners) male participation and, 626 disputes between, 199 physical capital v., 627 enganche and, 278 poor’s stock of, 633 self-enforcing compliance of, 197, 199 price received for, 629–633 usurpers, 199 Hume, David, 255 haciendas gold standard and, 255 development of, 521–523 Hypothesis, Kuznets. See Kuznets Hypothesis disappearance of, 502 eighteenth/nineteenth century, 485 IAPI. See Argentine Institute for the Promotion henequen, 345 of Trade Mexico’s, 204–205 Iberia, legal traditions of, 191 production in, 522 illiteracy ranchos v., 522 causes of, 462 sharecropping in, 522–523 rates of, 456–458 working conditions in, 522 IMF. See International Monetary Fund Yucatan’s, 345 immigrants Halperin Donghi, Tulio, 494 age ranges of, 420 Hamilton, Alexander, 40 associational activities of, 418

742 Index

immigrants (cont.) Immigration Act of 1917 (Cuba), 404–405 characterization of, 426 Immigration Law of 1876 (Argentina), 396 Chinese, 378, 379, 396 import(s) commercial overrepresentation by, 411 falling, 145, 573 as consumers, 416 reducing dependency on, 128 declarations by, 407 restrictions on, 575–576 entrepreneurship of, 416, 417 supply restrictions influence, 117 excluding, 399 World War I’s declining, 245 family nature of, 421 import substitution as human capital, 414 Argentina favoring of, 517 Italian, 412 Central American agricultural, 115 labor force influenced by, 420, 422, 427 economic growth and, 122 land ownership by, 410 export diversification v., 123 literacy levels of, 412, 413–416 isolationist policy of, 352 low quality of, 406, 407–408, 411–412 import-substitution industrialization (ISI) Northern European v. Southern/Eastern crisis of, 46 European, 412 distortions of, 135 permanent, 422 flourishing policies of, 38 railroads and, 317 golden age (1947-early 1960s) of, 5, “ready-to-use” nature of, 420 121–125 resistance to, 410 maturation/decline of, 135 screening of, 402 Mexico’s shift from, 148 social capital influenced by, 417 outcome of, 538 temporary v. permanent, 409 policy, introduction of, 48 wealth creation by, 408 reactions inspired by, 6 immigration. See also migrations strategy, 440, 643 age influence on, 419–420 transition from, 158 Argentinean, 515, 516 Impuestos Sobre Ingresos Mercantiles (ISM), attracting foreign, 381 commerical income tax, 228–235 Australian, 397–400 Incas agriculture, 526 birth rates and, 422 income Brazilian, 398, 400–401, 406, 425 distribution, globalization and, 651–652 coffee industry influenced by, 403 elasticity, 23 dependency rates, 423–424 elements comprising, 605 destinations of, 382 expansion of, 592 encouragement of, 3 expenditure and, 590 European, 379 family per capita, 605 growth, industrial, influenced by, 416 information sources about, 587 intercontinental, 380 misreporting/underreporting of, 588 manufactured goods influenced by, 416–417 per capita v. real wage, 12 mass migration and, 419 income-earning assets, 605–620 open door policy of, 396 access to, 606 passenger ship lists and, 407 classification of, 606–607 peak of, 424 prices/returns for, 607 policies, 395–406 inconvertibility, 221 population censuses, 409 indentured labor(ers) population growth and, 418–424 abolition of, 379 railroad’s influence on, 317 Caribbean’s need for, 379 Spanish, 404–405 independence spontaneous v. organized v. assisted, 400 Coatsworth on, 174 subsidy program, 390, 399, 402, 413 growth trajectory offered by, 174 unemployment and, 405 institutional change and, 173–175 unsubsidized, 403 struggles for, 11 urbanization and, 409 Independence movement, 434 U.S. restriction on, 402 India, technology and, 90

Index 743

indigenous people. See also Mapuches inflation Alvarado and, 473 Colombia’s wartime, 216 bilingual education for, 473 hyper, 215 Chile’s, 474 overvaluation and, 161 education of, 432, 471 rates, fall of (1990s), 161 Jesuits and, 471 tariff’s influence on, 41 of Michoacan,´ 472 inflation stabilization progressive educational ideology and, IMF and, 131 473 impressiveness of, 161 scholarships for, 474 inflationary financing School of Warisata for, 472 equity with, 247 Siles crusade for, 472 growth with, 228–244, 247 Industrial Credit Institute, 222 limited expansion of, 238 industrial development infrastructure Argentina’s, 545–547, 562 capital and, 311 Brazil’s, 543–545 characteristics of, 294 Chile’s, 547 failures/successes of, 296 export-led growth and, 539–562 improvements in, 295 Great Depression and, 562, 564 investments in, 294 post-1940, 570–583 policies of, 295 industrial revolution public-goods character of, 295 petrochemical wave of, 50 railroad expansion, 322 specialized economy produced by, 342 roads and, 301 industrialization shipping, 324 Argentina’s limited, 291 transport, impact of, 312–313 defined, 47 infrastructure development environment and, 331–332 1870–1930, 296 European diffusion of, 383 increasing, 294 export booms and, 290 regional gains from, 296 export-led growth and, 46, 287 transportation revolution and, 293 Great Depression and, 47 infrastructure investment Haber and, 288 categories of, 297 high rates of, 184 financing hurdles of, 308 history of, 537 net benefits of, 297 import substituting, 102 steam locomotion and, 294 judging progress of, 291 in transport improvements, 296 origins of, 46, 287 institutional change pre-1930, 48 independence and, 173–175 state intervention in, 232 process of, 174 inequality. See also poverty and inequality Instituto Brasileiro de Geografia e Estat´ıstica, 285 analysis of, 587 INTA. See National Institute for Agricultural belle epoque´ and, 49, 53 Research development levels and, 600, 602, Inter-American Coffee Agreement, 117 604 Inter-American Development Bank, 648 educational, 456, 477–479, 614 loans, 102 endowments and, 642 interest rates, real. See real interest rates exceptions in, 599 International Bank for Reconstruction and factors underlying, 636 Development. See World Bank globalization and, 50–55 International Harvester Corporation, henequen -growth relationship, 603 deal, 346 increases in, 598–599 International Inequality Database, Kuznets poverty and, 585 Hypothesis and, 601 severity of, 587–599 International Monetary Fund (IMF) wage, 588 Bretton Woods conference and, 137 wealth and, 172 Camdessus, Michel, director of, 146

744 Index

International Monetary Fund (cont.) coalition with, 185 exchange rate rules, 119 effective organization, 185 inflation stabilization program, 131 elastic supply of, 392–393 Latin American share of, 127 endowments, 640 Mexico’s rescue by, 146 European v. mulatto, 404 relationship difficulties with, 127 growth of, 24 success of, 93 international market for, 383 international trade lowlands, 26–27 impact of, 13 market, segmentation of, 425 underdevelopment of, 250 pacifying, 185 International Trade Organization (ITO), 137 restrictions on, 165 Interstate Commerce Act (1887), U.S. and, 311 segmentation of, 399 investment(s). See also direct foreign investment; slave v. free, 400 foreign direct investment; foreign technology’s influence on, 399 investment; infrastructure investment; labor force railroad investment immigrants influence on, 420, 422, 426, boom, 68 620–627 Chile’s industrial, 561 participation, human capital and, 620–627 Great Britain public utility, 115 population’s influence on, 275 Itaipu´ dam, 242 women in, 620 MNC’s, 579–580 labor surplus model, 52 opportunity, 606 LAFTA. See Latin America Free Trade output v., 561 Association Petrobras,´ 242 LAIA. See Latin American Integration U.S. sugar, 513 Association iron mine, open pit, 374 laissez faire Irwin, Douglas, 40 era of, 134 ISI. See import-substitution industrialization protectionism and, 539 ISM. See Impuestos Sobre Ingresos Mercantiles land. See also property rights Itaipu´ dam, investment in, 242 arable, 341, 629 Italy Colombian appropriation of, 274 immigrants of, 412 distribution, 484 property ownership in, 412 economic gain from, 335 ITO. See International Trade Organization endowments, and physical capital, 641 grants (composiciones), 196 Japan, 93 markets, 197 Jefferson, Thomas, 530 nonagricultural use of, 341 Jesuits, 471 ownership, disarray of, 196 job security, political support v., 572 private seizures of, 199 Juarez,´ Benito, 183 reform laws (Mexico), impact of, 199 Jurassic period, 335 land grants (compasiciones), 196 Mexico’s, 201 Kemmerer, Edwin, 106–107 Spain’s, 201 Andean mission of, 221 Land Law of 1936, Colombia’s, 203 Chilean mission of, 220 land reform Colombia visit by, 106 attempts at, 497–503 Keynesianism, 110 Bolivian, 499–500 Korean War, export price boom during, 101 Chilean, 500–501 Kubitschek, Juscelino, 232 Cuban, 500 Kuntz Ficker, Sandra, 270, 541 Mexican revolution’s influence on, 499 Kuznets Hypothesis, 599–602 Peru’s, 501–502, 528 inequality indicators and, 600 land titles, 200 International Inequality Database and, 601 land use Andean countries, 493 labor, 24–29 Argentina’s, 492 boards, state-coordinated, 185 categories of, 341

Index 745

cattle ranching’s, 351 universalization of, 452 data on, 489–491 wealth and, 44 dual, 349 loans. See also foreign loans early types of, 344–351 Inter-American Development Bank, 102 environmental impact of, 332–333, 344 London-negotiated, 64 periods of, 491 World Bank, 101 rural environment and, 353 lobbies, industrial, 6 landed oligarchy logging, 368 Argentina’s, 516 London Chile’s, 518 bond spread, development of, 494–495 capital market access, 99 Landes, David, 21 investment boom in, 60, 61 landmasses, North/South American, 335 loans negotiated in, 64 latifundios market maturity in, 69 characteristics of, 484 world capital markets and, 81 transformation of, 485 Lopez´ Portillo, Jose,´ 239 latifundismo, 204, 205 lowlands, 26 latifundistas, 45 Lucas, Robert, 89 Latin American Monetary Union, 280 Latin American Free Trade Association (LAFTA) machinery manufacturing LAIA replaces, 125 decline in, 565 Treaty of Montevideo’s creation of, 124 U.S., European, 560 Latin American Integration Association (LAIA), macroeconometric conditional analysis, 38 LAFTA replaced by, 125 macroeconomic Latinity, concept of, 397 distortions, 87 laws global crisis, 65–66 civil v. common, 191–193 instability, 125 judge-made, 192 performance, 287 statutory, 192 “trilemma,” 84 U.S. preemption, 201 Maddison, Angus, 53, 252 leakages, railroad income, 320 Magdalena River, 299 Leff, Nathaniel, 52 Malthusian devil, 383 legislative supremacy, judicial tyranny and, Mann, Horace, 436 193 manufacturing. See also machinery legitimacy, 197 manufacturing LeGrand, Catherine, 274 Chile’s growth of, 561 Colombian immigration and, 278–279 declines in, 563 lending, voluntary, 127 home v. abroad, 42 Lewis, Sir Arthur, 52 post–World War II growth in, 577 labor surplus model, 52 prices, v. commodity prices, 257 Ley Lerdo (Mexico, 1856), 198, 199 protection of, 43 Liberal Revolution, Colombia’s, 31 transformations in, 543 Limantour, JoseY.,´ 550 Mapuches (indigenous people), 474 Lindo Fuentes, Hector,´ 273 educational challenges faced by, 474–475 linkage(s) Maracaibo basin, 252 backward, 319 Mares, David, 30 forward, 317 markets linkage effects, 317–321 characteristics of, 23 linseed, 503 inﬂuences on, 49 List, Frederich, argument offered by, 39–40 land, 197 literacy. See also illiteracy opening of, 97 Cuba and, 443 size of, 46 education and, 456 mass migration, 52 immigrants and, 412, 413–416 Canada and, 397 population size and, 414–415 free, 394–395 rates, 460–461 gains/losses from, 405

746 Index

mass migration (cont.) ISI shift of, 148 immigration and, 419 labor federations of, 571 unpopularity of, 395 land grants, 201 Mayans, henequen and, 345 Ley Lerdo (1856), 198 McCaa, Robert, 277 monetization and, 234 McCormick, Cyrus, 345 Nacional Financiera of, 235 McGregor, Gregor, 60 NAFTA and, 148–149, 164 meat oil exports from, 106 and Great Britain, 349 Porfiriato, 523 refrigeration’s influence on, 349, 516 railroad’s influence on, 309, 316, 317, 318 South American exportation of, 16 ranch growth of, 350 Meller, Patricio, 279 recession of, 149 Menem, Carlos, 261 rural education’s expansion in, 471 Mercado Comun´ del Sur (MERCOSUR), silver’s depreciation in, 263 160 SNTE of, 447 adoption of, 150 social savings of, 271 metal-working/construction, 565 stabilizing development program of, 230, 235, Mexican Central railroad, return on investment, 244 316 state-led education of, 433 Mexican Revolution, 263 tariffs of, 31, 548, 568 industrial growth during, 558 terms of trade’s deterioration in, 284 land reform influenced by, 499 trade liberalization policies of, 148 turmoil of, 524 tribunals abolished by, 194 Mexican-American War, 201 U.S. and, 118, 149 Mexico Michoacan,´ indigenous people of, 472 above-average performance of, 130 microclimates, 338 agriculture of, 520–526 migrants, seasonal (golandrinas), 386, 388 bonds of, 272 migration(s). See also immigration; mass Codigo Lares of, 193 migration Confederacion´ Obrera Regional de México characteristics of, 407 (labor federation) of, 568 flows, 421 constitutions of, 183, 194, 523 impact of, 165 convertibility suspended in, 221 internal, 403 de la Madrid administration, 148 international studies on, 388 debt agreement of, 120–121 policy, 425 default of, 102, 108 return rate of, 387, 411 devaluation in, 108 slave, 380 Echeverr´ıa administration of, 238, 239 strategies of, 421 education in, 433 trends, 378–395 ejido, 524–526 Miller, Rory, 271 export performance of, 159, 164 Miller, Simon, 271 financial crisis (1994), 146, 163 mineral exports, 45 food constraints of, 524 mineral extraction, 152 Fundidora Monterrey of, 549 agriculture v., 484 GATT joined by, 141 DFI flow to, 152 geography of, 520–521 minifundistas globalization’s influence on, 157 Bolivian, 529 gold standard and, 107, 216 longevity of, 535 growth, export-led, of, 541 Peruvian, 502 growth with stability in, 238 mining haciendas and, 204–205 environmental impact of, 372 henequen commercialized by, 347 sector, crisis of, 226 IMF’s rescuing of, 146 technology, 342, 488 increased exports from, 103 Mining Credit Bank, 222 invasions of, 30 MNCs. See multinational corporations

Index 747

model National System of Fiscal Coordination, dependency, 250 240 Engerman-Sokoloff, 172, 173, 206 National Treasury Adjustable Bonds (ORTN), globalization, 52 237 Heckscher-Ohlin, 52 nation-building, 46 labor surplus, 52 Native Americans. See indigenous people NewEconomic, 7 natural resources, 23–24. See also forests; self-reinforcement, 174 mining modernization exploitation of, 343, 381 agricultural, 356, 357, 532 globalization and, 4 nineteenth century to World War I, 209 human density’s influence on, 332 political/economic institution’s, 209 nature, 330 modernizing ideology (desarrollismo), 440 Nazi Germany, 113 education and, 440 Netto, Delfim, 243 Molina wheel, 345 NewEconomic History, 1 monetary contraction, 215 NewEconomic Model, 7 monetary policy NewInstitutional Economics, 170 transformation of, 153 New Plan (1934), 113 weakness in, 153 NewWorld, 170 money emigration to, 379 counterfeit, 221 institutional divergence, 170–173 doctors, 106, 107, 660 New York, 81 monopoly Newly Industrialized Countries (NICs) influence of, 23 East Asian, 89, 141 rights, handing out of, 184 indebtedness of, 141 Monroe Doctrine, 84, 85 NICs. See Newly Industrialized Countries Montenegro, Santiago, 290 Niemeyer, Sir Otto Moret Law, 275 Brazil and, 107 Morse, Richard, 169 Peru and, 107 notion of, 173 1914–1930 period, 218–223 motor vehicles nineteenth century appearance of, 325 economic shocks of, 59 road improvements and, 325 1920s usage of, 325–326 borrowing in, 81 Mulhall, Michael, 251 gold standard rebuilt in, 81 multinational corporations (MNCs) 1930–1945 period, 223–227 banking systems and, 580 1980s global expansion of, 142 debt crisis of, 135, 138 Heckscher-Ohlin theorem and, 140 World War II to, 228 investments of, 579–580 1990s linking of subsidiaries, 160 controls lowered in, 97 protectionism and, 579 crises/contagions, 95 role played by, 140–141 neoliberal consensus, 95 trade liberalization, 141 “Washington consensus” account of, 97 non-tariff barriers (NTBs) Nacional Financiera,Mexico’s, 235 increase of, 144 NAFTA. See North America Free Trade reducing tariffs and, 148 Agreement North America Free Trade Agreement (NAFTA) National Bank Mexico and, 148–149, 164 of Bolivia, founding of, 218 regional integration and, 160 of Colombia, 211 North, Douglass, 21 National Development Plan, 241 constitutional limits and, 180 National Education Council, 445 “rules of the game” of, 170 National Institute for Agricultural Research No-Till agriculture, 364, 518 (INTA), 517 NTBs. See non-tariff barriers

748 Index

Obregon,´ General Alvaro, 5 Pedagogical Institute, 437 Ocampo, Jose´ Antonio, 286 PEM. See Plan of Monetary Stabilization official rates, black market rates v., 87 PEMEX. See Petroleos´ Mexicanos Ohlin, Bertil Perez-Brignoli,´ Hector,´ 20–21, 262 globalization model, 52 permit systems, 575 predictions of, 50–51 Peru oil African slaves imported by, 527 exploration, environmental impact of, 372 agriculture of, 526–530 Mexico and, 106 Amazon Basin and, 530 shocks, 102, 128–133 Bolivia’s confederation with, 190 Venezuela and, 106, 131 civil code of, 190 oil prices drug plants grown in, 530, 533 OPEC cartel agreement and, 241 education reform in, 444 quadrupling of, 128 enganchadores (labor contractors) of, 279 oligarchy food situation in, 528 Argentina’s, 516 geographic regions of, 526 Chile’s, 518 gold standard adopted by, 106, 217, 218 development of, 494–495 Incas of, 526 exporters and, 350 land reform in, 501–502, 528 government of, 44 minifundistas of, 502 One Thousand Days’ War (Colombia), 216 Niemeyer’s proposal to, 107 OPEC cartel agreement, 241 Pacific War and, 213 Ordenanzas de Bilbao (Spanish commerical law), peasant agriculture of, 526–530 188 population growth in, 279, 528 O’Rourke, Kevin, 38 Sendero Luminoso uprising of, 502 ORTN. See National Treasury Adjustable Bonds sugar and, 527–528 Ottawa conference (1932), 112 terms of trade’s deterioration in, 284 Ouro Preto monetary/banking reform, 214 Viceroyalty of, 526 overvaluation peso arguments favoring, 120–121 gold, 214 domestic currency, 107 silver, countries using, 211 inflation’s decline and, 161 Petrobras,´ investment in, 242 U.S. exchange rate, 108 petrochemical wave, industrial revolution and, 50 Pacific War (1879–83) Petroleos´ Mexicanos (PEMEX), high investment Chile and, 212 levels of, 241 Peru and, 213 petroleum fuel, 324 Palacios, Marco, 249 physical capital, 606, 616–620 Palma, Gabriel, 212 accumulation, measurement of, 616 Panama Canal arable land’s use and, 618 completion of, 14 capital per worker as, 616 Spaniards’ construction of, 414 human capital v., 627 Panama hats, 503 land endowments and, 641 Pani, Alberto, 222 returns to, 633–638 paper industry, 543 Pinochet, Augusto, 442 paradox, tariff-growth, 38 Plan de Metas, 230 Paraguay, loan fraud of, 65 Plan of Monetary Stabilization (PEM), 232 Paraguayan War, 65 plantations, rubber, 532 Parker, William, 169 plata dulce, 110 patterns of development, world markets, policy reforms endowments, and, 23–28 legitimacy and, 197 PaxPorfiriana, institutional formula of, 185 “neoliberal,” 95 Paz, Pedro, 20 political support, job security v., 572 Paz-Alejandro, 22 population. See also growth, population peasant, agriculture, 365, 485, 526–530 falling of (1980–1990s), 163

Index 749

growth, Norte Grande, 279 gains of, 431 growth rates, 276 indigenous children and, 473 lowland’s increasing, 26 legacies of, 431 port improvements, 321–324 roots of, 431 capital invested in, 323 property rights need for, 322 defense of, 176 ports disputes over, 198 Brazil’s access to, 324 government’s enforcing of, 198 modernization of, 324 reforms of, 195–206 postwar period, 86–90 protectionism, 123. See also trade protection 123 foreign capital stopped during, 86 ad hoc policies of, 570 poverty agricultural, 159 absolute, 593 distortions of, 582 Bolivia and, 472–478 exchange rate depreciation and, 570 decline of, 592 laissez faire and, 539 economic growth and, 602 military governments and, 572 FGT index and, 599 MNCs and, 579 growth elasticity and, 603 outcomes of, 578 human capital and, 633 point of, 578 inequality, growth and, 602–605 policies of, 218 rich v. poor gap, 28 rates of, 574–583 trends, study of, 588 tariffs and, 45, 548 poverty and inequality, 585 trade, 571 assessing, 592 World War II and, 570–571 cross-country comparison of, 588 public education data limitations, 587–589 Chile’s development of, 437 economic growth and, 599–605 consolidation of, 437 evolution of (1970–2000), 590–599 mass-based, 442 Gini index of, 589–590, 598 politics of, 430 growth of, 602–605 spending cuts in, 441 increasing, 602 Puerto Madero, 323 persistence of, 642 Putnam, Robert, 464 twentieth-century evolution of, 587–599 underlying reasons for, 643 Queretaro´ Poyais loan of 1822,McGregor’s, 60 Miller’s study on, 271 Prebisch, Raul,´ 13, 32 railroad’s arrival to, 271 research of, 538 Quiroz, Alfonso, 262 terms of trade and, 281 primary education railroad(s) accessibility, 445, 446 allocative efﬁciency improved by, 314 curriculum, 465 Argentine, 269, 310, 317, 318 enrollment rates in, 450–451 backward, 319 expansion of, 450–452, 454 backward linkages, 312–313, 317, 320 ideology of, 438 Bessemer process and, 303 reduced quality of, 452 Brazil’s construction of, 309–310, 311, 318 returns on, 633 coffee and, 271 UNESCO and, 448 construction, 272 universalization of, 452 cost savings on, 314 The Progress of the World (Mulhall), 251 Cuba and, 269 progressive educational ideology decelerated construction of, 311 children’s equality in, 431 domestic capital markets inﬂuenced by, 320 conservative educational ideology v., 431–432, early history of, 308–309 438 eclipse of, 324 countries supporting, 441 equipment for, 308 democratic focus of, 431 expansion, 321

750 Index

railroad(s) (cont.) manipulation of, 45 exports influenced by, 270, 318 policy packages and, 45 financing of, 308–312 real interest rates, 635–636 forward linkages, 317 real lending rate, 153 GDP and, 269 real wage comparisons v. per capita income geographic distribution of, 303–304 comparisons, 12 gold standard and, 265–270 recession growth trends of, 304–306, 315, 541 Brazil’s, 77 immigrant growth and, 317 global, 138 impact of, 264, 314, 318 Mexico’s, 149 income leakages, 320 1929–1933, 84 infrastructure of, 301–307, 316 U.S., 102 institutional externalities, 313 Reciprocal Trade Act (1934), 113 investment in, 269, 272, 316 recovery, Western European (1950s), 126 layout of, 310–311 Rediscount Portfolio. SeeCarteira de Redescuento linkage effects, 317–321 (CARED) Mexican Central, 316 reforms Mexico and, 309, 316, 317, 318 judicial, delay of, 194 necessity of, 296 legal, 188–195 passenger benefits, 315 policy-level, 195 production relationships altered by, 312 property rights, 195–206 Queretaro´ and, 271 rural education, 473 rapid expansion of, 303 refrigeration rate setting, 311 meat market influenced by, 349, 516 role of, 17 trade implications of, 16 routing/location, 310 Republic of Capital (Adelman), 175 social savings generated by, 265, 269, 312–313, resource extraction 314, 315 environmental conditions for, 340–341 substitutes for, 303 in human society, 330 supply influenced by, 292 resources, natural. See natural resources track expansion and, 303 response, Latin American, 144–155 wealth and, 310 revenue World War I and, 303 maximization targets/optimal tariffs, railroad expansion, 321 40–46 savings generated by, 314 needs, 40–41, 46 transport cost reduction from, 317 revisionists, 19–20 railroad investment, 43, 66, 269, 272, 316 Reynolds, Clark, 570 attraction for, 308, 309 rigidities, institutional, 169 impact of, 312–316 Rippy, Fred, 60, 61, 64 transport costs reduced by, 312–313 assertions of, 68 railroad tracks River Plate, 68 expansion of, 303 river systems, 299 length in service, 304–307 roads rainfall, 488 building of, 301 Ram´ırez, Mar´ıa Teresa, 272 gold shipments and, 298 ranches. See also cattle ranching infrastructure and, 301 environmental impact of, 351 inland, limited improvements to, 297 Mexico’s growth of, 350 interior movement spearheaded by, 357 types of, 350 limited capacity of, 300 ranchos, haciendas v., 522 motor vehicle’s influence on, 324, 325 range management, 360 origins of, 298 Reagan-Thatcher revolution, 142 pre-steam, 297–301 real borrowing rate, 153 turnpike companies and, 300 real exchange rates Robinson, James, 14 depreciating, 541 Roca, Julio, 274

Index 751

Roca-Runciman Anglo-Argentine agreement securities (1933), 108, 113 Brazil’s flourishing of, 552 Rocchi, Fernando, 545 MNCs and, 580 Rodriguez, Simon,´ 434 segregation, educational, 439–440 Rogowski, Ronald, 44–45 self-reinforcement model, 174 Roman Catholic Church, 432. See also Church, Sendero Luminoso uprising, Peru’s, 502 Catholic sesmaria, institution of, 202 Rosenblat, Angel, 252 sharecropping, 522–523 Rothschild Committee (1891) shipping. See also steamships Argentina and, 78 fleets, 322 Brazil’s Funding Loan of, 78 increase in, 322, 324 Royal Academy of the Language, 436 infrastructure improvements, 324 Royal Exchange merchant, 322 Battle of Ayacucho and, 59 steam-powered, 321 firms listed on, 66 Siles, Hernando, 472 rubber, natural, 503 silver dealers (aviadores)of,531 Bolivia’s devaluation of, 215 harvesting of, 531 coins, 210 plantations, 532 Colombia and, 262 spreading of, 531 Mexico’s depreciation of, 263 vulcanization of, 531 peso, 211 “rules of the game” (North), 170 standard, trends influencing, 250 rural education Sindicato Nacional de Trabajadores de la Costa Rica’s expansion of, 471 Educacion´ (SNTE), Mexico’s, 447 Mexico’s expansion of, 471 Singer, Hans, 32, 34 neglect of, 471 slavery, 15, 26 reform, 473 abolition of, 26, 275 Brazil and, 26, 77 Saenz, Moises,´ 472 free labor v., 400 salt-consumption tax, 215 migration, 380 Sanchez-Albornoz,´ Nicolas,´ 26 Moret’s Law and, 275 Santa Cruz, Andres,´ 190 Neff on, 280 Sarmiento, Domingo Faustino, 436–437 Spanish Caribbean, 275 Educacion´ Comun´ of, 436–437 trading in, 377 U.S. visit by, 436 tropical exports and, 28 savannas slaves, African agricultural, cattle ranching’s growth in, Brazil and, 26 359–361 importing of, 26, 380 burning’s influence on, 361 Peru’s importation of, 527 commercial agriculture’s intensification small- and medium-sized enterprises (SMEs), outside, 361–364 153 countries with, 359 Smoot-Hawley Act, 84, 113 soils of, 359 SNTE. SeeSindicato Nacional de Trabajadores de savings, social. See social savings la Educacion´ School of Warisatta social capital Aymara people and, 472 defined, 417–418 indigenous people and, 472 immigrants influence on, 417, 426 school systems social savings founding of, 432 Colombia’s, 272, 315 public purposes of, 428, 440 freight, 314 religion and, 432 for Mexico, 271 secondary education passenger, 314 expansion of, 452–453, 454 railroads and, 265, 269, 312–313, 314, 315 interpersonal trust and, 464 Sociedad Rural Argentina (Cattleman’s returns in, 633 Association), 350

752 Index

society, human steam fossil energy and, 330 importance of, 321 resource extraction in, 330 locomotion, infrastructure investment and, SOEs. See state-owned enterprises 294 soil, 488 steamships, 321 Sokoloff, Kenneth, 21, 171–173. See also importance of, 16 Engerman-Sokoloff model, 21, 171–173 increase in, 322 three-economy typology of, 21–22 introduction of, 299 South America Stein, Stanley/Barbara, 169 Cordillera de Los Andes and, Stemmer, Jules Oribe, 18 ecosystems of, 336 stock markets, 152 meat exporting by, 16 Stolper-Samuelson theorem weather of, 338 capitalists and, 43–45 South Korea predictions, 47 debt crisis of, 147 structures, institutional, depiction of, 169 educational progress of, 607–620 student achievement, UNESCO study of, 462 investment rise in, 627 Suez Canal, 14 Southern Cone countries (Argentina, Chile, sugar Uruguay) Brazilian, Cuban, 205, 511 distortions in, 89 cane, Columbus brings, 511 economic instability, 127 Castro and, 514 experimentation of, 148 controls on, 512 South/North American landmasses, 335 economic importance of, 511–512 sovereign issues ethanol and, 512 Brazil’s honoring of, 64 Peru and, 527–528 failures of, 63 production of, 512, 513 1970’s explosion of, 95 U.S. investment in, 513 Soviet Union, Cuban trade with, 123 Summerhill, William, 21, 180, 541 soybeans SUMOC. SeeSuperintendencia de Moneda y agriculture impacted by, 360 Crédito introduction of, 363 Sunkel, Osvaldo, 20 Spain Superintendencia de Moneda y Crédito (SUMOC) Bourbon policy in, 189 Brazil’s, 235 centralism of, 185 monetary policy powers assigned to, 242 colonial policy of, 15 synthetic products, 534 commercial law (Ordenanzas de Bilbao)of,188 economic globalization under, 58 Taiwan, 607–620 immigration to, 404–405 tariff(s). See also non-tariff barriers (NTBs) land grants of, 201 belle epoque’s,´ 34–46 Spanish Caribbean, 275 Brazil’s industrial, 550 Special Exchange Account, 223 consumer goods, 568 specialization, resource endowments, trade and, cotton textile industry, 550, 569 19–23 deindustrialization and, 42 specific-duty effect, 41 EEC, 574 spending, social, World Bank targeting of, 154 on gold, 45 squatter’s gold standard and, 45 opposition from, 202 Great Depression and, 13 rights, 202 -growth debate, 38 stabilization efforts, 235–244 high v. industrial growth, 47 Stabilization Fund, Colombia’s, 223 inflations/deflations influence on, 41 stare decisis,rule of, 191 intermediate goods, 568–569 state-owned enterprises (SOEs) Mexico’s, 31, 548, 568 divestiture of, 150 pre–World War II, 34 eliminating subsidies to, 154 protectionism and, 45, 548 states, national, 209 rates, country size and, 46

Index 753

rates, transportation costs v., 43 barriers, man-made, 18, 569 revenue, 40–41, 46 human capital endowments and, 638–641 trade liberalization lowering of, 161 inflating terms of, 42 transport costs v., 43 policy, terms of trade/tariffs and, U.S. v. Latin American, 37 rapid growth of, 139 wartime falling of, 41 specialization, resource endowments and, World War I and, 41 19–23 World War II and, 34 terms of, 32–33 tariff protections, 45, 548, 549–550 theory, international, 540 awarding of, 567 transport costs into, 43 tariff-growth trends, production and, 251–254 debate, 38 World War I’s influence on, 343 paradox, 38 trade liberalization tax globalization and, 150 collecting powers, governmental, 210 Mexico and, 148 salt-consumption, 215 MNCs and, 141 Taylor, Alan, 261 processes, 636 teaching success of, 149 flight from, 476 tariffs lowered by, 161 quality of, 462 trade protection, 550 technology Argentina’s, 551 agricultural mining, 342, 488 governments aligned with, 572 capital-intensive, 496 problems of, 580 economic growth and, 342 transition, demographic, 162 EMBRAPA’s development of, 532 transportation. See also railroads; roads; environment influenced by, 376 shipping; steamships growth, industrial, 49 cost reduction, 312 henequen impacted by, 345 European immigrant’s advantages in, 384–386 India and, 90 geography’s influence on, 298–301 labor influenced by, 399 inland water routes and, 300 U.S. and, 90 Magdelena River and, 299 terms of trade, 33, 281 nineteenth-century challenges of, 298 deterioration in, 281 pre-rail conditions of, 312–313 improvement in, 281 reduced costs of, 301 income, 285, 286 revolution of, 14–19, 32–33, 43 Mexico/Peru’s deteriorating, 284 services, categories of, 314 net barter, 282, 283–286 technologies influence on, 314 Prebisch and, 281 transportation costs stability of, 286–287 declining, 16, 32, 540 Venezuala’s deteriorating, 284–285 economic activity and, 313 textbooks, 437 profit elimination and, 313 Thailand, 618 tariff rates v., 43 Third International Mathematics and Science Transamazonian highway, 358 Study (TIMMS), 462 Treasury bills, 145 Thorp, Rosemary, 262 Treaty of Guadalupe-Hidalgo, 201 three-economy typology, Engerman’s, 21–22 Treaty of Montevideo, 124 title(s) Treaty of Rome, 124 formalization of, 197 trends, production/trade, 251–254 land, murkiness of, 200 tribunals political demand for, 197 Mexico’s abolishing of, 194 topography, 19 specialized, 194 total exports, commodities exports v., 122 tropical lowland forests trade. See also foreign trade; international trade; expanding agricultural frontier in, 357–358 terms of trade; trade liberalization; trade extent of, 355 protection transformation of, 355–356

754 Index

Tr uman administration projects, 124 universities, private, 468 Republican administration reversal of, 124 government support of, 468 turnpike companies, 300 universities, public twentieth century, 2–7 abandonment of, 470 typologies, 20–21 access of, 467–470 Engerman/Sokoloff three-economy, 21–22 authoritarian intervention of, 445 varieties of, 20 Catholic v., 467 tyranny creation of, 432 of distance, 32 elitist population of, 468 judicial, legislative supremacy and, 193 graduation from, 467 The Tyranny of Distance (Blainey), 14 politic leadership and, 467 quality of, 468 underdevelopment, 260 university reform unemployment conservatives v. progressives influence on, 467 immigration and, 405 politics of, 467–470 urban, 558 urbanization UNESCO. See United Nations Educational, birth rates and, 422 Scientific and Cultural Organization immigration and, 409 UNICEF. See United Nations International industry and, 48 Children’s Emergency Fund Uruguay United Nations Conference on Trade and Baring Crash’s influence on, 76 Development (1964), 123 civil codes of, 190 United Nations Educational, Scientific and gold standard adopted by, 217 Cultural Organization (UNESCO), 448 Uruguay Round, 138 education initiatives and, 477–479 GATT and, 139 primary education and, 448 U.S. See United States student achievement studied by, 462 United Nations International Children’s Value Added Tax, 228, 239 Emergency Fund (UNICEF), 448, 477–480 Velasco Alvarado, Jhan, 473 United Nations, Universal Declaration of Veliz,´ Claudio, 173 Human Rights of, 448 Venezuela United States (U.S.) civil code of, 190 capital flow restricted by, 142 constitutions of, 182 development projects financed by, 124 foreign debt redeemed by, 109 economic contraction by, 562 increased exports (1928–82), 103, 118 export growth to, 165 National Education Council of, 445 Federal Reserve model (Banking School), 222 oil exports, 106 GDP influenced by, 116 oil industry nationalized, 131 hegemony, 352 terms of trade’s deterioration in, 284–285 henequen and, 346 vertical commitments, 183–186 immigration policy of, 400, 402 Viceroyalty, Peruvian, 526 Interstate Commerce Act (1887) and, 311 economy of, 526 machinery manufacturing, 560 volatility Mexico and, 118, 149 evidence of, 283–286 newly independent, 29 underdevelopment and, 260 overvalued exchange rate, 108 Volta Redonda steel works, 565 preemption laws, 201 vulcanization, 531 recession, 102 Sarmiento’s visit to, 436 wage(s) Smoot-Hawley Act (1930)of,84 comparisons, 12 sugar investments by, 513 differentials, 631 technology and, 90 evolution of, 388 trade opportunities, rise of, 184 inequality, 588 trade policy, 113 real, 389 Universidad de Chile, 436 U.S. v. Great Britain, 390

Index 755

wage gap, 141 The World Economy: A Millennial Perspective country trends for, 629 (Maddison), 252, 277 European v. Latin American, 392 World Trade Organization, GATT’s creation Wall Street of, 7, 139 Black Friday of, 562 World War I boom, depression and, 104 Argentina influenced by, 254 The Washington Consensus, 136 convertibility and, 220, 221 water declining imports during, 245 abundance of, 372 diminished profits during, 353, 557 availability, crop yield and, 487 falling revenues during, 220 coastal resources and, 371–372 financial difficulties and, 324 mercury poisoning of, 374–375 globalization interrupted by, 4 waves, great, great crash and, 68–80 gold’s return after, 263 wealth labor market prior to, 394 inequality of, 172 modernization and, 209 literacy and, 44 railroad’s expansion halted by, Weingast, Barry, 21, 180 303 Western European recovery (1950s), 126 tariffs rising after, 41 wheat reaper, 345 trade’s expansion during, 343 Wilde, Oscar, 61 World War II Williams, John, 261 coffee prices post–, 507 Wilson, Belford Hinton, 14 excess specialization after, 6 women, in labor force, 620 export taxes increased during, 224 wood GDP growth and, 577 increased demand for, 365 international capital markets and, increased extraction of, 365–368 224 World Bank liberalization after, 108 Bretton Woods conference and, 137 manufacturing growth after, 577 loans, 101, 124 new economic order after, 352 social spending targeting by, 154 1980s to, 228 world capital markets protectionism and, 570–571 distance, transport revolutions and, 14–19 tariffs before, 34 interwar crisis of, 80–86 London/New York, 81 Yucatan World Conference on Education, 477 haciendas of, 345 world economy henequen monopoly by, 346 Cuba’s entrance to, 123 paradigm shift of, 7 Zapata, Emiliano, 523