ABSTRACT
Following a period of good economic stability and growth in the mid-1990s, many countries in Central and South America have experienced relative economic instability and low or negative growth over the last four or five years. The previous growth had been due to much stronger structural foundations, demonstrated by progressive economic growth before the Mexican financial crisis in the early 1990s and relatively rapid stabilization following it. Structural reforms, such as reduced public spending, privatization, increased foreign investment and reduced tariffs, stimulated strong economic growth between 1991 and 1994. The benefits were reduced inflation, increased foreign capital inflows, decreased national debt, and rising value-added exports.
