ABSTRACT
This chapter is concerned only with the Latin American countries that became semi-industrialized or substantially modernized during the post-war period, including the less-inegalitarian countries of Argentina, Costa Rica and Uruguay. It explains about possible relevant distributive trends that may prevail under the conditions of the evolving process of globalization. The chapter explores challenges to social cohesion emerging from income-distribution tensions in countries subject to the new economic order, and strategic choices open to public policy with the aim of compensating losers and helping winners to live harmoniously in the globalized world of tomorrow. Although the adoption of reforms may be swift and sweeping, consolidating a new development style – not necessarily the blueprint envisaged by the reformers – will take considerable time and may even require complex negotiation at cross-roads. The considerations favor a long-term view and help sort out which forces will represent strong distributive tensions to the emerging development model tied to globalization.
