chapter  7
6 Pages

Effects of Changes in the Magnitude and Composition of Financial Flows on National Development

As the pattern of external financial flows to Latin America was modified, and as the volume of flows increased substantially, the impact which the changing and growing integration of Latin American economies into the world fmancial system had on those countries' economic policies and development posed very important questions. To what extent did larger financial flows (and their growing 'privatisation') augment the options open to Latin American countries in the seventies, and to what extent did they place new constraints on policy-making and on the nature of development? Did the relative degree of autonomy available to the national governments on the whole tend to increase or decrease during the seventies? How will the changes in the international flows affect countries' autonomy in the eighties?