ABSTRACT
This chapter summarizes the divergent experiences of the East Asian and the Latin American countries with respect to export expansion, economic growth, and price stabilization. It discusses the policy implications for the Latin American countries from the perspectives of the East Asian countries. A strategic link in the divergence of their growth patterns concerned the growth of export earnings that accelerated sharply in the East Asian countries during the 1960s while remaining relatively modest in many the Latin American countries. The operation of the Southern Cone reform programs was undoubtedly complicated by the worsening of the global environment after the second oil shock. The improvement in the Brazilian economic performance followed major policy reforms in the mid-1960s. The success of the Brazilian stabilization efforts in the late 1960s owed more to its trade and fiscal policies than to the indexations.
