IDEAS home Printed from https://ideas.repec.org/p/ecr/col048/7792.html
   My bibliography  Save this paper

Institutional requirements for market-led development in Latin America

Author

Listed:
  • Cimoli, Mario
  • Correa, Nelson
  • Katz, Jorge
  • Studart, Rogério

Abstract

This paper seeks to provide a systematized framework for the main ideas that have been developed by ECLAC concerning the effects that market-led reforms have had on labour, financial and technology markets. In order to explore these questions further, a research project has been undertaken by ECLAC with the sponsorship of the German Agency for Technical Cooperation (GTZ). The project deals with the institutional requirements for properly functioning financial, technology and labour markets. Particular attention is being devoted to the institutional forces affecting market access by traditionally excluded actors, such as small and medium-sized enterprises (SMEs) in the case of long-term financial and technology markets, poor households in the case of housing finance, and female workers in the case of the labour market. As a consequence of the market-led reforms, Latin America has transformed its pattern of development and the way in which its brand of capitalism is configured. At the same time, the reform process is shown to have yielded unsatisfactory results when the performance level achieved in each factor market is evaluated. Labour markets exhibit a range of difficulties in reducing unemployment and informal employment. Financial markets are characterized by concentration and by the increasing difficulties encountered by the weaker agents in accessing resources. And, in most of the economies in the region, the role played by technology markets in creating and diffusing technology domestically is being downgraded. This poor performance has co-evolved along with a reduction in the State's participation in the economy and an increasing power asymmetry in favour of private agents. The above difficulties seem to be related to the persistence of various types of market failures and the lack of non-market institutions capable of strengthening and supporting the operation of factor markets. The persistence of imperfect information, the lack of initial entitlements and gaps in learning capabilities have hindered the adaptation of various actors to the discipline of a new macro policy and incentive regime. Because of these underlying weaknesses in the institutional fabric inherited by the region, its factor markets have functioned very imperfectly and have failed to deliver what was expected of them in terms of a better long-term overall performance.

Suggested Citation

  • Cimoli, Mario & Correa, Nelson & Katz, Jorge & Studart, Rogério, 2003. "Institutional requirements for market-led development in Latin America," Series Históricas 7792, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  • Handle: RePEc:ecr:col048:7792
    Note: Includes bibliography
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/7792
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. -, 2000. "Equity, development and citizenship," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 14969 edited by Eclac, March.
    2. Krueger, Anne O, 1978. "Alternative Trade Strategies and Employment in LDCs," American Economic Review, American Economic Association, vol. 68(2), pages 270-274, May.
    3. Fernando J. Cardim de Carvalho, 1992. "Mr Keynes And The Post Keynesians," Books, Edward Elgar Publishing, number 79.
    4. Zuleta J., Luis Alberto, 1999. "El factor institucional en reformas a las políticas de crédito y financiamiento de empresas de menor tamaño: la experiencia colombiana reciente," Financiamiento para el Desarrollo 5281, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Cimoli, Mario & Dosi, Giovanni, 1995. "Technological Paradigms, Patterns of Learning and Development: An Introductory Roadmap," Journal of Evolutionary Economics, Springer, vol. 5(3), pages 243-268, September.
    6. Mr. Adolfo Barajas & Mr. Roberto Steiner, 2002. "Credit Stagnation in Latin America," IMF Working Papers 2002/053, International Monetary Fund.
    7. -, 2000. "Equity, development and citizenship," Documentos de posición del período de sesiones de la Comisión 14969, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Gunther Held, 2000. "Políticas de viviendas de interés social orientadas al mercado: experiencias recientes con subsidios a la demanda en Chile, Costa Rica y Col," Documentos de Investigación 3350, Cepal Naciones Unidas.
    9. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    10. Stallings, Barbara & Weller, Jürgen, 2001. "Job creation in Latin America in the 1990s: the foundation for social policy," Macroeconomía del Desarrollo 5405, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Mowery, David & Rosenberg, Nathan, 1993. "The influence of market demand upon innovation: A critical review of some recent empirical studies," Research Policy, Elsevier, vol. 22(2), pages 107-108, April.
    12. Stumpo, Giovanni & Peres Núñez, Wilson, 2002. "La dinámica de las pequeñas y medianas empresas industriales en América Latina y el Caribe," Copublicaciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1721, September.
    13. Joseph E. Stiglitz, 1999. "More instruments and broader goals: moving toward the Post-Washington Consensus," Brazilian Journal of Political Economy, Center of Political Economy, vol. 19(1), pages 101-128.
    14. Claudio Borio & Craig Furfine & Philip Lowe, 2001. "Procyclicality of the financial system and financial stability: issues and policy options," BIS Papers chapters, in: Bank for International Settlements (ed.), Marrying the macro- and micro-prudential dimensions of financial stability, volume 1, pages 1-57, Bank for International Settlements.
    15. Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633.
    16. Adolfo Barajas & Roberto Steiner, 2002. "Why Don't They Lend? Credit Stagnation in Latin America," IMF Staff Papers, Palgrave Macmillan, vol. 49(Special i), pages 156-184.
    17. Schmidt-Hebbel, Klaus & Serven, Luis & Solimano, Andres, 1996. "Saving and Investment: Paradigms, Puzzles, Policies," The World Bank Research Observer, World Bank Group, vol. 11(1), pages 87-117, February.
    18. Barbara Stallings & Rogerio Studart, 2002. "Financial Regulation and Supervision in Emerging Markets: The Experience of Latin America since the Tequila Crisis," WIDER Working Paper Series DP2002-45, World Institute for Development Economic Research (UNU-WIDER).
    19. Ffrench-Davis, Ricardo, 1999. "Macroeconomía, comercio y finanzas para reformar las reformas en América Latina," Copublicaciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2070 edited by McGraw-Hill Interamericana, September.
    20. Stumpo, Giovanni & Alarcón, Cecilia, 2001. "Policies for small and medium-sized enterprises in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    21. Held, Günther, 2000. "Políticas de viviendas de interés social orientadas al mercado: experiencias recientes con subsidios a la demanda en Chile, Costa Rica y Colombia," Financiamiento para el Desarrollo 5304, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. -, 2004. "Productive development in open economies: summary," Documentos de posición del período de sesiones de la Comisión 13094, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. -, 2004. "Productive development in open economies: summary," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 13094 edited by Eclac, March.
    3. Escaith, Hubert & Morley, Samuel, 2001. "El efecto de las reformas estructurales en el crecimiento económico de la América Latina y el Caribe. Una estimación empírica," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(272), pages 469-513, octubre-d.
    4. Carolina Castaldi & Mario Cimoli & Nelson Correa & Giovanni Dosi, 2004. "Technological Learning, Policy Regimes and Growth in a `Globalized' Economy: General Patterns and the Latin American Experience," LEM Papers Series 2004/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Ocampo, José Antonio, 2001. "A new look at the development agenda," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Petr Korab & Jitka Pomenkova, 2017. "Credit Rationing in Greece During and After the Financial Crisis," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 67(2), pages 119-139, April.
    7. Michael Frömmel & Torsten Schmidt, 2006. "Bank Lending and Asset Prices in the Euro Area," RWI Discussion Papers 0042, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    8. Leo H. Chan, 2006. "A Note On The Correlation Relationship Among Singapore, Hong Kong And The Us Capital Markets Since The Hong Kong Handover: Implication For International Portfolio Management," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 51(03), pages 335-342.
    9. Philippe DULBECCO, 2000. "The Dynamics of the Institutional Change and the Market Economy: An Austrian Analysis," Working Papers 200010, CERDI.
    10. Solimano, Andrés & Soto, Raimundo, 2005. "Economic growth in Latin America in the late 20th century: evidence and interpretation," Macroeconomía del Desarrollo 5398, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. repec:zbw:rwidps:0042 is not listed on IDEAS
    12. Meriem Haouat & Diego N. Moccero & Ramiro Sosa Navarro, 2012. "Foreign Banks and Credit Volatility: The Case of Latin American Countries," Review of International Economics, Wiley Blackwell, vol. 20(5), pages 1017-1033, November.
    13. Giovanni Dosi & Richard Nelson, 2013. "The Evolution of Technologies: An Assessment of the State-of-the-Art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 3-46, June.
    14. Poghosyan, Tigran, 2011. "Slowdown of credit flows in Jordan in the wake of the global financial crisis: Supply or demand driven?," Economic Systems, Elsevier, vol. 35(4), pages 562-573.
    15. Sojo, Ana, 2001. "Reforming health-care management in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    16. Ffrench-Davis, Ricardo, 2003. "Financial crisis and national policy issues: an overview," Copublicaciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1785, July.
    17. José Antonio Ocampo, 2003. "Developing countries' anti-cyclical policies in a globalized world," Chapters, in: Amitava Krishna Dutt (ed.), Development Economics and Structuralist Macroeconomics, chapter 19, Edward Elgar Publishing.
    18. Ocampo, José Antonio, 2001. "International asymmetries and the design of the International Financial System," Series Históricas 7776, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    19. Linda S. Goldberg, 2007. "Financial sector FDI and host countries: new and old lessons," Economic Policy Review, Federal Reserve Bank of New York, vol. 13(Mar), pages 1-17.
    20. Boysen-Hogrefe, Jens & Dovern, Jonas & Groll, Dominik & van Roye, Björn & Scheide, Joachim, 2010. "Droht in Deutschland eine Kreditklemme?," Kiel Discussion Papers 472/473, Kiel Institute for the World Economy (IfW Kiel).
    21. Philippe DULBECCO & Jean-Pierre ALLEGRET & COURBIS, 1999. "Financial Liberalisation and Stability of the Financial System in Emerging Markets: the institutional dimension of financial crises," Working Papers 199918, CERDI.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col048:7792. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.