Luis Bértola

Between the colonial heritage and the first globalization boom: on income inequality in the Southern Cone

This paper presents a first estimate of income inequality in the Southern Cone of South America (Brazil 1872 and 1920, Chile 1870 and 1920, Uruguay 1920) and some assumptions with regard to Argentina (1870 and 1920) and Uruguay (1870). We find that income distribution was relatively high on the eve of the first globalization boom. Thus, inequality is not only the result of globalization, but also a structural feature. Inequality increased between 1870 and 1920, both within individual countries and between countries. Globalization forces do not result in obvious outcomes. Rather, the effect of globalization on inequality depends on the expansion of the frontier and institutional persistence and change in old and new areas. Inequality was clearly high in the wake of the globalization process. This was a particular kind of inequality, which was part of a set of institutions closely linked to the exports of primary goods, sluggish technological change and limited human capital formation.

Income Distribution in the Latin American Southern Cone during the First Globalization Boom and Beyond

Latin America is the most unequal region in the world and there is intense debate concerning the explanations and timing of such high levels of income inequality. Latin America was also the region, not including European Offshoots, which experienced the most rapid growth during the first globalization boom. It can, therefore, be taken as an interesting case of study regarding how globalization forces impinged on growth and income distribution in peripheral regions. This article presents a first estimate of income inequality in the Southern Cone of South America (Brazil 1872 and 1920, Chile 1870 and 1920, Uruguay 1920) and some assumptions concerning Argentina (1870 and 1920), and Uruguay (1870). We find an increasing trend towards inequality between 1870 and 1920, which can be explained as a process of inequality both within individual countries and among countries. This trend is discussed along three lines: the relationship between inequality and per capita income levels; the dynamics of the expansion to new areas; and movements of relative factor prices and of the terms of trade. During the current globalization process inequality remained apparently stable, as a result of contradictory movements: within-country inequality increased, especially in the three countries with the highest per capita income; on the other hand, between-country inequality was reduced due to the process of club-convergence among the Southern Cone countries. Divergence with core countries was deepened. Some implicit results seem to show that state-led industrialization was featured by decreasing inequality, both within and among countries.

Convergence, trade and industrial policy: Argentina, Brazil and Uruguay in the international economy, 1900–1980

This paper discusses the economic performance of three Latin American countries (Argentina, Brazil and Uruguay) from a comparative perspective, using as a benchmark a group of four developed countries (France, Germany, the United Kingdom and the United States). The focus is on the relative performance within the region and between the Latin American countries and the developed countries in the period 1900–1980. The paper argues that Argentina and Uruguay benefited from a privileged position in international markets at the beginning of the 20th century and this allowed them to converge. However, they failed to adjust to the major long-run change in the pattern of world trade brought about by World War I and the Great Depression, which implied a persistent decline of their export markets. On the other hand, Brazil, after having been much less successful until 1930, grew at higher rates thereafter based on rapid structural change and the building up of competitive advantages in new industrial sectors. The more vigorous Brazilian policy for industrialization and export diversification may explain why Brazil succeeded in changing its pattern of specialization, while Argentina and Uruguay were locked in to the old pattern. A typology of convergence regimes is suggested based on the growth experience of these countries.

Uneven Development Paths among Settler Societies, 1870–2000

The development trajectories of different settler economies varied significantly in the long run. This chapter aims to identify some crucial determinants in these divergent trends. It discusses three basic sets of ideas. First, there existed a group of countries - modern ‘settler societies’. Second, settler societies showed quite different economic performances through time, giving place to quite different economies. Third, economic performance is strongly related to patterns of specialization and structural change, and by the distribution of income and wealth. The chapter explores the idea that distribution could have an impact on the pattern of productive and trade specialization. In turn, productive and trade specialization were considered important factors to explain technological change, productivity growth and economic performance. The evidence presented shows that there is a positive relationship between inequality and the specialization in low value-added activities. Keywords:development paths; settler economies; settler societies; value-added activities

La historia económica en Uruguay: desarrollo y perspectivas

espanolEste articulo aborda el desarrollo reciente de la Historia Economica en Uruguay, particularmente los aspectos de conformacion institucional y las lineas teorico-metodologicas y tematicas predominantes. Despues de identificar una etapa fundacional de la disciplina entre 1960 y 1985 se realiza una evaluacion del desarrollo reciente, al que se caracteriza como un periodo de dispersion, refundacion y especializacion. Se concluye que, a pesar de que la Historia Economica perdio su papel de nucleador de las ciencias sociales y de que el numero relativo de sus cultores ha disminuido, la disciplina ha experimentado un proceso de consolidacion institucional y organizativa. Este abarca la formacion especializada a nivel de posgrados, un estrecho relacionamiento con la comunidad internacional y el esfuerzo por combinar el conocimiento historico con el rigor teorico y metodologico. Sobre estas bases se ha venido incrementando la produccion y es de esperar que la disciplina vuelva a ganar un lugar importante en la vida academica EnglishThis paper is concerned with recent development of Economic History in Uruguay. It focuses on its institutional features as well as on the prevailing theoretical and methodological approaches and research topics. A foundational period 1960-1985 is shortly reviewed. Recent development is thereafter discussed and characterised as one of dispersion, re-foundation and specialisation. The paper concludes that, notwithstanding Economic History loosed its central place and weight among the social sciences, the discipline has gone through a process of institutional and organisational strengthening. This embraces specialised graduate education, fluent relationships to the intemational community and an attempt to combine historical knowledge with rigorous treatinent of theory and method. On this basis, the production of more and better facts has been increasing and, hopefully, the discipline may regain an outstanding place in academic life.

Latin American Economic History

The paper will explore different trends in Latin American economic history written in different periods, relating them to contemporary academics, economic and political debates in Latin America and in the developed world. It will highlight the extent to which economic history in Latin America and Latin American historiography has shown similar development patterns to the Western canon, where particular and distinctive features can be found.