ABSTRACT
This chapter covers three related subjects, taking Latin America as the focus of analysis: the general and recent trend towards economic liberalization; the ongoing process of ownership change; and the policy challenges associated with a process of inward internationalization which is the outstanding structural feature of these economies. Policy proposals were aimed at macroeconomic stabilization and economic liberalization and included: fiscal discipline, trade and financial liberalization, increasing reliance on market mechanisms, privatization and the heightened role of the private sector. The 1990s was a period when Argentina, Brazil, Chile and Mexico liberalized their national regimes of incentives and regulation. Foreign firms have historically played a key role in the industrialization of Brazil, and recent trends point out an increasing importance of such companies to the economy.
