ABSTRACT
The general ideas on development in Latin America, which were also to some extent an extension of simple Keynesian analysis to development problems, evolved mainly in the CEPAL secretariat in the early 1950s. A rather weak spot in the whole strategy has been the lack of proper fiscal reform in Latin America. There are many studies to show it in different countries. In many countries, the regional imbalances and disparities were clearly recognised, perhaps especially in Brazil where it was realised that the northeast region required special measures. The situation would vary from country to country in the light of recent development history and of basic conditions. Chile stands out as the Latin American country where one of the first successful development corporations was set up: the CORFO, with the avowed purpose of transferring resources into the industrial sector. The leading countries never became fully committed, and political obstacles intervened.
