| Subject: #57-63 |
Author:
Ernesto
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Date Posted: 22:37:08 05/20/02 Mon
In reply to:
Dylan
's message, "ID Stuff" on 08:09:51 05/11/02 Sat
tariffs
Taxes on imported goods. Can be implemented to protect domestic producers,
putting up these barriers prevents foreign competition from hurting infant
industries. In many Latin American countries, structuralists implemented high
tariffs to try and alleviate economic problems.
subsidies
Grants by a government to private companies to assist an enterprise deemed
advantageous to the public. A tactic used by governments to strengthen the
national economy by strengthening industries. Latin American countries
implemented subsidies programs during the 1950-1982 era.
nationalization
Bringing privately owned companies under public (gov't) control. Governments
can take over of revenue producing industries to increase government income.
Latin American countries took over many foreign owned companies to keep
ownership of industries domestic and to supply government revenues. Mexico
nationalized the oil industry, now known as Pemex, under the presidency of
Lazaro Cardenas in 1938.
primary commodities
Raw materials: agricultural products, animals, wood, gold, minerals, etc., not
manufactured, processed or synthetic goods. Latin America's economic growth was
due to primary commodities or products. Previously this has been Latin
America's only source of economic growth. Argentina for example was known for
its production of beef for the European and American markets.
Raul Prebisch
Argentinean economist at CEPAL, developer of Dependency theory. Argued that
third world countries were made dependent on first world countries, becoming
suppliers of raw materials, primary commodities. He supported development of
manufacturing industries and protectionist policies like high tariffs and
subsidies.
terms of trade
The ratio of exports versus imports. The terms of trade for Latin America have
always been off balance, more imports than exports, with the difference
increasing with time. Declining terms of trade have led to greater economic
troubles for Latin America.
producer cartels
A group of producers that get together to control an industry, setting prices
and other rules. Producer cartels limit free market competition in an industry.
A famous example is OPEC or Organization of the Petroleum Exporting countries,
however producer cartels also exist in smaller scales and in different
industries.
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