ABSTRACT
This chapter considers the characteristics of the Latin American economies and identifies patterns of development from colonialism. The colonial economies in the Americas could best be described as extractive and exploitative. Colonies in Latin America were required to purchase all commodities from their colonial powers. Export promotion was key to regional growth during the second half of the nineteenth century. To lessen the dependence on one crop, the governments made tax and credit decisions that would encourage production of goods other than the traditional ones for export. By the early 1980s, many Latin American countries had a debt crisis. Important strides have been made toward reducing poverty and inequality in recent years, though Latin America still has the most unequal income distribution in the world. The chapter conclude by looking at issues of sustainable development in the region's political economy, including poverty and inequality, the informal economy, and the environment.
