chapter  4
The Institutional Framework
WithRobert N. Gwynne
Pages 20

Post-war industrial expansion has brought changes not only in industrial structure and technology but also in the productive agents of industrialisation. The process of industrial expansion in Latin America has been engineered through a distinctive industrial structure. The role of the Brazilian state in that country's rapid industrial growth since 1964 is illuminating. Third World countries are presently industrialising with the assistance of multinational enterprise, but Latin American countries have already developed complex and diverse industrial structures from the contributions of foreign investment. Latin American industrialisation, in contrast to the industrialisation of Europe, United States and Japan, has developed within the institutional framework of a triple alliance of state firms, multinational corporations and national private enterprise. During the closed import-substitution phase of industrial development, multinationals achieved greatest success in terms of reducing costs and increasing demand in the larger countries of Latin America.