ABSTRACT
Latin American development experienced a turning-point during the 1930s. The contrast between 'before and after 1929' may often be exaggerated, but there is little doubt that the decade witnessed a closing toward international trade and finance, and a relative upsurge of import-substituting activities, primarily but not exclusively in manufacturing. This chapter explains how various Latin American countries coped with the crisis and the extent to which they were able to mobilise mechanisms of adjustment beyond deflation. The nature and magnitudes of the external shocks are narrated. The chapter discusses the various policy reactions to those shocks, covering measures seeking to regain external and internal balance, as well as policies targeted toward longer-term goals. It explores the global, sectoral and welfare performances. In evaluating performance, emphasis is placed on quantitative indicators. The chapter concludes with a discussion on an overall interpretation of events during the 1930s.
