ABSTRACT
At the turn of the twenty-first century, the economies of Latin America are experiencing another major boom, mainly caused by favorable external commercial and financial circumstances, accompanied by prudent macroeconomic policies. The average rate of growth of 5 per cent over the last five years, for the region as a whole, is the highest of the last twenty-five years. Such rates of growth are comparable only to those experienced during the three decades of the vilified period of what is now called “state-led,” or “accelerated” industrialization (Cardenas et al. 2000, 3). At the beginning of 2008, there is concern that the present economic boom in Latin America will again come to a halt, as a result of another external shock, which is emanating from the downturn in the economy of the United States. Such an outcome would be consistent with the economic history of Latin America. Exceptional will be if the Latin American economies are able to withstand the imminent external shock that is emerging in their short-term outlook.
