ABSTRACT
That Latin America has not made its peace with democratic capitalism - and the United States - until the last years of the twentieth century is principally the consequence of the incompatibility of traditional Iberian culture with political pluralism and the free market, on the one hand, and the inevitable resentment of the successful by the unsuccessful, on the other. One hears that Raul Prebisch viewed import substitution as a temporary strategy; that he also promoted export strategies; and that he was concerned about "ethical" problems in Latin America. Dependency theory was one of the forces that shaped the foreign policies of most Latin American countries. Latin America's traditional phobia about foreign investment is symbolized by the Calvo Doctrine, which requires that disputes with foreign investors be adjudicated in domestic courts, foreclosing recourse to international mediation and arbitration. In 1950, the combined value of South Korea's and Taiwan's exports was $96 million.
