ABSTRACT
Now that we have demonstrated the central importance of the state as an actor in LA history and the ability of ideas to shape state policies in a variety of ways in response to the same constraints, dismissing the fatalism, helplessness and hopelessness of the dependency view, we must address the next red herring before getting to which ideas make the most sense for LA economic policy. Much of the debate among mainstream economists and dependistas [those who believe in dependency] concerns the optimality of the market; often this discussion takes on moral overtones. Mainstream economics is based on theories that show that markets are almost always more efficient and preferred to any state intervention, while many of the anti-globalization protests against free trade assert that markets reinforce inequality and unsustainable consumption.
