International Political Economy Essay Example | Topics and Well Written Essays - 2500 words

International Political Economy - Essay Example Alternatively, authoritarianism in Latin American was expressed through repressive state organs, a chokehold over the media and personal rule but neoliberal economic policies, particularly in Chile under the rule of military strongman Augusto Pinochet. Thus, while both Latin America and Eastern Europe share a legacy of authoritarian economic, social and political development in the latter half of the 20th century, the means through which authoritarianism was expressed will have ramifications on the transitions of each region with respect to a variety of social developmental factors (ODonnell, 2004). In the Latin American context, unique challenges are raised with respect to economic reform in a post-authoritarian setting. Seeking to understand why reforms have failed in the Latin American context, Homedes, & Ugalde (2005) explore the challenges associated with liberalization of the economic system. Looking at the Chilean and Columbian cases in comparative perspective, these scholars argue that neoliberal reforms undertaken in Latin America do not necessarily improve the efficiency of the economic system. Thus why dramatic changes are being implemented in the post-authoritarian period, reforms which involve privatization and decentralization do not resonate in a post-authoritarian system in which the legacy dictates what people have come to expect with respect to the provision of state services and the economy. Seeking to understand the important economic crises in Latin American leading to the need for reform, the following asks, why are the 1980s considered to be a lost decade for Latin America? As one of the most important financial crises in world history, the Latin American debt crisis occurred when a handful of Latin American countries defaulted on their loans to international creditors, provoking an