Hostname: page-component-848d4c4894-pftt2 Total loading time: 0 Render date: 2024-05-07T07:14:38.591Z Has data issue: false hasContentIssue false
  • English
  • Français

Equality and Regional Finance in the Americas

Published online by Cambridge University Press:  02 January 2018

Leslie Elliott Armijo
Leslie Elliott Armijo*
Affiliation:
Mark O. Hatfield School of Government, Portland State University, Center for Latin American and Latino Studies at American University Leslie.armijo@gmail.com
Get access Rights & Permissions [Opens in a new window]

Abstract

This article explores competing definitions of equality embedded in contending visions for regional finance in the Americas. The U.S. free market–oriented project envisions extension of a NAFTA-like regulatory framework hemispherewide, promising Latin Americans better financial services, credit, and investment in exchange for strong financial property protections and (implicitly) dramatically reduced financial policy autonomy for their governments. Venezuela's vision of “Bolivarian” finance, exported to the Caribbean and the upper Andes, promotes assertive state management of both foreign and domestic investors, populist redistribution, and increasing reliance on nonmarket financial transactions. Brazil's regional financial project would unite South America through continentwide physical infrastructure and capitalist financial markets while retaining a role for public sector banks responsive to central government priorities. Brazil's approach shares with Venezuela's an emphasis on governments' need for financial policy authority and with the U.S. approach a concern for regulatory predictability and financial deepening.

Type
Research Article
Information
Latin American Politics and Society , Volume 55 , Issue 4 , Winter 2013 , pp. 95 - 118
Copyright
Copyright © University of Miami 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acharya, Amitav. 2007. The Emerging Regional Architecture of World Politics. World Politics 59 (July): 629–52.CrossRefGoogle Scholar
Alexander, Philip. 2010. Top 1,000 World Banks 2010. Banker, July 6. http://www.the-banker.com/Top-1000-World-Banks/2010 Google Scholar
Allen, H. Franklin, and Gale, Douglas. 2000. Comparing Financial Systems. Cambridge: MIT Press.Google Scholar
Almeida, Paulo Roberto de. 2004. Two Foreign Policies: from Cardoso to Lula. Paper prepared for the seminar Brazil: Between Regionalism and Globalism, Florida International University, March 4.Google Scholar
Amann, Edmund, and Baer, Werner. 2006. Economic Orthodoxy versus Social Development? the Dilemmas Facing Brazil's Labour Government. Oxford Development Studies 34, 2: 219–41.CrossRefGoogle Scholar
Amsden, Alice H., 1992. Asia's Next Giant: South Korea and Late Industrialization. Oxford: Oxford University Press.CrossRefGoogle Scholar
Arbix, Glauco, and Martin, Scott B.. 2011. New Directions in Public Policy and State-Society Relations. In Font and Randall 2011. 59–82.Google Scholar
Armijo, Leslie Elliott. 1993. Brazilian Politics and Patterns of Financial Regulation, 1950–1991. In The Politics of Finance in Developing Countries, ed. Lee, Chung H., Haggard, Stephan, and Maxfield, Sylvia. Ithaca: Cornell University Press. 259–90.Google Scholar
Lee, Chung H., Haggard, Stephan, and Maxfield, Sylvia 1996. Inflation and Insouciance: the Peculiar Brazilian Game. Latin American Research Review 31, 3 (Fall): 7–46.Google Scholar
Lee, Chung H., Haggard, Stephan, and Maxfield, Sylvia 2005. Mass Democracy: the Real Reason that Brazil Ended Inflation? World Development 33, 12 (December): 2013–28.Google Scholar
Armijo, Leslie Elliott, and Rhodes, Sybil. 2013. Contending Visions of the Americas: Regional Public Policies of the United States, Brazil, and Venezuela. Unpublished mss.Google Scholar
Armijo, Leslie Elliott, Faucher, Philip, and Dembinska, Magdalena. 2006. Compared to What? Assessing Brazilian Political Institutions. Comparative Political Studies 39, 6 (August): 759–86.CrossRefGoogle Scholar
Arruda, Marcos. 2008. Endogenous Development and a South American Financial Architecture. Paper presented at the seminar Beyond Bretton Woods: The Transnational Economy in Search for New Institutions, Mexico City, October 15–17.Google Scholar
Artana, Daniel. 2010. Why the Banco del Sur is a Bad Idea. Americas Quarterly, February 25. www.americasquarterly.org Google Scholar
Attar, Mohsen al, and Miller, Rosalie. 2010. Towards an Emancipatory International Law: the Bolivarian Reconstruction. Third World Quarterly 31, 3: 347–63.CrossRefGoogle Scholar
Bank for International Settlements (BIS). 2008. New Financing Trends in Latin America: A Bumpy Road Towards Stability. BIS Papers 36. Basel: BIS.Google Scholar
Barshefsky, Charlene, and Hill, James T.. 2008. U.S.-Latin America Relations: A New Direction for a New Reality. Independent Task Force Report 60. Washington, DC: Council on Foreign Relations.Google Scholar
Biancareli, André M., 2011. Financial Cooperation and Reserve Pooling: the Case of the Latin American Reserve Fund. Presentation at the workshop Regional Monetary Cooperation, Desigualdades Institute, Free University of Berlin, November 14.Google Scholar
Boschi, Renato. 2011. State Developmentalism: Continuity and Uncertainty. In Font and Randall 2011. 37–58.Google Scholar
Brainard, Lael, and Martínez-Díaz, Leonardo, eds. 2009. Brazil as an Economic Superpower? Understanding Brazil's Changing Role in the Global Economy. Washington, DC: Brookings Institution Press.Google Scholar
Burges, Sean W., 2007. Building a Global Southern Coalition: the Competing Approaches of Brazil's Lula and Venezuela's Chávez. Third World Quarterly 28, 7: 1343–58.CrossRefGoogle Scholar
Burges, Sean W., 2009. Brazilian Foreign Policy After the Cold War. Gainesville: University Press of Florida.CrossRefGoogle Scholar
Business News Americas (Bna). 2009. Regional Development Bank Banco Del Sur Created. November 24. www.bnamericas.com Google Scholar
Camara-Neto, Alcino F., and Vernengo, Matías. 2009–10. Beyond the Original Sin: a New Regional Financial Architecture in South America. Journal of Post-Keynesian Economics 32, 2 (Winter): 199–212.CrossRefGoogle Scholar
Caprio, Gerard, Fiechter, J. L., Litan, R. E., and Pomerleano, M., eds. 2005. The Future of State-Owned Financial Institutions. Washington, DC: Brookings Institution Press.Google Scholar
Cardoso, Fernando Henrique, and Faletto, Enzo. 1979. Dependency and Development in Latin America. Berkeley: University of California Press.CrossRefGoogle Scholar
Carvalho da Silva, José Guilherme. 2004. A integração sul-americana e o Brasil: o protagonismo brasileiro na integração da IIRSA. Monograph. Belém: Núcleo de Altos Estudos Amazônicos, Universidade Federal do Pará. http://issuu.com/rbrasil/docs/integracao_sul_americana_e_brasil Google Scholar
Chang, Ha-Joon. 2002. Kicking Away the Ladder: Development Strategy in Historical Perspective. London: Anthem Press.Google Scholar
Chang, Ha-Joon. 2003. Globalisation, Economic Development, and the Role of the State. London: Zed Books.Google Scholar
Chant, John F. n.d. [mid-1990s]. The Financial Sector in Nafta: Two plus One Equals Restructuring. Unpublished mss. Economics Department, Simon Fraser University. http://oldfraser.lexi.net/publications/books/assess_nafta/finance.html. Accessed April 2012.Google Scholar
Cihac, M., Demirguc-Kunt, A., Feyen, E., and Levine, R.. 2012. Benchmarking Financial Systems Around the World. Policy Research Working Paper 6175. Washington, DC: World Bank. August.CrossRefGoogle Scholar
Cline, William. 2010. Financial Globalization, Economic Growth, and the Crisis of 2007–09. Washington, DC: Peterson Institute for International Economics. May.Google Scholar
Collyns, Charles. 2012. The Latin Tigers: Peru and Chile Make Strides in Inclusive Growth and Development. Treasury Notes, August 7. http://www.treasury.gov/connect/blog/Pages/collyns-peru-chile.aspx Google Scholar
Corrales, Javier, and Penfold, Michael. 2011. Dragon in the Tropics: Hugo Chávez and the Political Economy of Revolution in Venezuela. Washington, DC: Brookings Institution Press.Google Scholar
Coronil, Fernando. 1997. The Magical State: Nature, Money, and Modernity in Venezuela. Chicago: University of Chicago Press.Google Scholar
Da Costa, Ana Nicolaci. 2010. Q+a: What Foreign Exchange Reforms Are Brewing in Brazil? Reuters, March 9.Google Scholar
De Soto, Hernando. 1989. The Other Path: The Economic Answer to Terrorism. New York: Basic Books.Google Scholar
Dymski, Gary A., 2010. Three Futures for Postcrisis Banking in the Americas: The Financial Trilemma and the Wall Street Complex. Working Paper 604. Annandale-on-Hudson: Levy Economics Institute. June.Google Scholar
Economic Commission on Latin America and the Caribbean (ECLAC). 2010. Foreign Direct Investment in Latin America and the Caribbean. Santiago, Chile: ECLAC.Google Scholar
Economist Intelligence Unit. 2012. Erosion of Regulatory Agencies Becoming Apparent. December 19. www.eiu.com Google Scholar
Eichengreen, Barry. 2010. The International Financial Architecture and the Role of Regional Funds. Paper prepared for the Fifth Annual FLAR Economic Studies Conference, Cartagena, August.Google Scholar
Eichengreen, Barry, and Hausmann, Ricardo. 1999. Exchange Rates and Financial Fragility. Working Paper 7418. Cambridge, MA: National Bureau of Economic Research.CrossRefGoogle Scholar
Fawcett, Louise, and Hurrell, Andrew, eds. 1995. Regionalism in World Politics: Regional Organization and International Order. Oxford: Oxford University Press.Google Scholar
Fishlow, Albert. 2011. Starting Over: Brazil Since 1985. Washington, DC: Brookings Institution Press.Google Scholar
Folson, Ralph H., 2008. NAFTA and Free Trade in the Americas in a Nutshell. St. Paul: Thomson-West.Google Scholar
Font, Mauricio, and Randall, Laura, eds. 2011. The Brazilian State: Debate and Agenda. Lanham: Lexington Books.Google Scholar
Fox, Jonathan. 2004. The Politics of North American Economic Integration. Latin American Research Review 39, 1 (February): 254–72.CrossRefGoogle Scholar
Fritz, Barbara, and Metzger, Marina, eds. 2006. New Issues in Regional Monetary Coordination: Understanding North-South and South-South Arrangements. London: Palgrave Macmillan.CrossRefGoogle Scholar
Galeano, Eduardo. 1997 [1973]. The Open Veins of Latin America: Five Centuries of the Pillage of a Continent. New York: Monthly Review Press.Google Scholar
Galindo, Arturo J., Izquierdo, Alejandro, and Rojas-Suárez, Liliana. 2010. Financial Integration and Foreign Banks in Latin America. IDB Working Paper 116. Washington, DC: Inter-American Development Bank. January.Google Scholar
Gallagher, Kevin. 2005. Putting Development First: The Importance of Policy Space in the WTO. London: Zed Books.Google Scholar
Gallagher, Kevin. 2010. Capital Controls and Trade Agreements. G-24 Policy Brief 55. Washington, DC: G-24.Google Scholar
García-Herrero, Alicia, and Woolridge, Philip. 2007. Global and Regional Financial Integration: Progress in Emerging Markets. Bis Quarterly Review (September): 57–70. www.bis.org Google Scholar
Gershenkron, Alexander. 1962. Economic Backwardness in Historical Perspective: A Book of Essays. Cambridge: Belkap Press.Google Scholar
Glaser, Daniel L., 2011. Emerging Threats and Security in the Western Hemisphere. Written testimony of the Assistant Secretary for Terrorist Financing, Department of the Treasury, before the House Committee on Foreign Affairs, October 13. http://newsroom-maga-zine.com/2011/executive-branch/treasury-department/treasurys-daniel-glaser-identifies-emerging-threats-to-western-hemisphere-nations Google Scholar
Gnos, Claude, Monvoisin, Virginie, and Ponsot, Jean-François. 2009–10. Regional Currencies and Regional Monetary Zones in Latin America: What Prospects? Journal of Post-Keynesian Economics 32, 2 (Winter): 173–84.CrossRefGoogle Scholar
Gómez-Mera, Laura. 2008. How “New” is the “New Regionalism” in the Americas? the Case of Mercosur. Journal of International Relations and Development 11, 3: 279–308.CrossRefGoogle Scholar
Gustafson, Christine A., and Elliott Armijo, Leslie. 2011. Regional Integration [in South America]: Political Uses of Energy Policy. In Font and Randall 2011. 341–68.Google Scholar
Hart-Landsberg, Martin. 2009. Learning from Alba and the Bank of the South: Challenges and Possibilities. Monthly Review 61, 4 (September). www.monthlyreview.org CrossRefGoogle Scholar
Henning, C. Randall. 1994. Currencies and Politics in the United States, Germany, and Japan. Washington, DC: Peterson Institute for International Economics.Google Scholar
Hoggarth, Glenn, Reis, Ricardo, and Saporta, Victoria. 2002. Costs of Banking System Instability: Some Empirical Evidence. Journal of Banking and Finance 26: 825–55.CrossRefGoogle Scholar
Hufbauer, Gary Clyde, and Suominen, Kati. 2010. Globalization at Risk: Challenges to Finance and Trade. New Haven: Yale University Press.Google Scholar
International Herald Tribune. 2010. Venezuela Receives First Installment of $20 Billion Chinese Loan. September 18.Google Scholar
Johnson, Simon. 2009. The Quiet Coup. The Atlantic, May. www.theatlantic.com. Accessed May 2010.Google Scholar
Karl, Terry Lynn. 1997. The Paradox of Plenty: Oil Booms and Petro-States. Berkeley: University of California Press.CrossRefGoogle Scholar
Kitchen, Nicholas. 2010. Systemic Pressures and Domestic Ideas: a Neoclassical Realist Model of Grand Strategy Formation. Review of International Studies 36, 1: 117–43.CrossRefGoogle Scholar
La Porta, Rafael, López-de-Silanes, Florenciano, and Shleifer, Andrei. 2002. Government Ownership of Banks. Journal of Finance 57, 1: 265–301.CrossRefGoogle Scholar
Labaqui, Ignacio. 2012. Who's Afraid of Reversing Neoliberal Reform? Financial Statecraft in Argentina and Venezuela. Paper presented at workshop Financial Statecraft of Emerging Market Economies, Center for International Studies, University of Southern California, July 28.Google Scholar
Lapper, Richard. 2007. Chávez Flies South. Financial times, August 6.Google Scholar
Lima, Maria Regina Soares de. 2010. El legado de la política exterior de Lula. El Pais, September 29. http://www.caffereggio.net/2010/09/29/el-legado-de-la-politica-exterior-de-lula-de-maria-regina-soares-de-lima-en-el-pais Google Scholar
Luce, Mathias Seibel. 2007. O subimperialismo brasileiro revisitado: a política de integração regional do governo Lula (2003–2007). Master's thesis, international relations. Porto Alegre: Universidade Federal do Rio Grande do Sul.Google Scholar
Malamud, Andrés. 2011. A Leader without Followers? the Growing Divergence between the Regional and Global Performance of Brazilian Foreign Policy. Latin American Politics and Society 53, 3 (Fall): 1–24.CrossRefGoogle Scholar
Mantega, Guido. 1984. A economia política brasileira. São Paulo: Polis.Google Scholar
McElhiny, Vince. 2009. Global Crisis is Good News for IFIs in Latin America. January 27. Washington, DC: Americas Program, Center for International Policy. http://www.ciponline.org Google Scholar
Morgenson, Gretchen. 2012. Barriers to Change, from Wall St. and Geneva. New York times, March 17.Google Scholar
Nascimento, Gilberto. 2000. Interview with Oded Grajew in Isto É. December 12. www.istoe.com.br Google Scholar
Ostry, Jonathan D., Mauro, Paolo, Dell'Ariccia, Giovanni, di Giovanni, Julian, Faria, André, Kose, Ayhan, Schindler, Martin, and Terrones, Marco. 2007. Reaping the Benefits of Financial Globalization. Discussion paper. Washington, DC: Research Department, International Monetary Fund. June.Google Scholar
Oxfam International. 2003. Make Trade Fair for the Americas: Agriculture, Investment, and Intellectual Property: Three Reasons to Say No to the FTAA. Policy brief 37. Washington, DC: Oxfam.Google Scholar
Philips, Tony. 2009. A New Financial Architecture for Latin America. Parts 1 and 2. October 16. Washington, DC: Americas Program, Center for International Policy. http://www.ciponline.org Google Scholar
Porzecanski, Arturo. 2011. Corporate Workouts in Mexico: The Good, the Bad, and the Ugly. CSIS Issues in International Political Economy, Special Issue 1 (April): 1–6. Washington, DC: Center for Strategic and International Studies.Google Scholar
Power, Timothy J., 2010. Optimism, Pessimism, and Coalitional Presidentialism: Debating the Institutional Design of Brazilian Democracy. Bulletin of Latin American Research 29, 1: 18–33.CrossRefGoogle Scholar
Putnam, Robert D., 1988. Diplomacy and Domestic Politics: the Logic of Two-Level Games. International Organization 42, 3 (Summer): 427–60.CrossRefGoogle Scholar
Rose, Gideon. 1998. Review: Neoclassical Realism and Theories of Foreign Policy. World Politics 51, 1 (October), 144–72.CrossRefGoogle Scholar
Santana, Maria Helena, et al. 2008. Novo Mercado and Its Followers: Case Studies in Corporate Governance Reform. Washington, DC: International Finance Corporation.Google Scholar
Smith, Adam. 2008 [1776]. An Inquiry into the Nature and Causes of the Wealth of Nations: A Selected Edition. Ed. Sutherland, Kathryn. New York: Oxford University Press.Google Scholar
Stallings, Barbara, with Studart, Rogerio. 2006. Finance for Development: Latin America in Comparative Perspective. Washington, DC: Brookings Institution Press.Google Scholar
Stiglitz, Joseph, and Weiss, A.. 1981. Credit Rationing in Markets with Imperfect Information. American Economic Review 71: 353–76.Google Scholar
Von Mettenheim, Kurt. 2012. Federal Banking in Brazil: Policies and Competitive Advantages. London: Pickering and Chatto.Google Scholar
Wagner, Constance Z., 1999. The New Wto Agreement on Financial Services and Chapter 14 of Nafta. Law and Business Review of the Americas (Winter): 5–90.Google Scholar
Wallach, Lori. 2012. Trade Deals: Backdoor Financial Regulation. Huffington Post, March 20. www.huffingtonpost.com Google Scholar
Waltz, Kenneth N., 1979. Theory of International Politics. New York: McGraw-Hill.Google Scholar
Welch, John H., 1993. Capital Markets in the Development Process: The Case of Brazil. Pittsburgh: University of Pittsburgh Press.CrossRefGoogle Scholar
Wheatley, Jonathan. 2009. Guido Mantega: Interventionist Basking in New Economic Orthodoxy. Financial times, July 6.Google Scholar
Williams, Mark Eric. 2012. Understanding U.S.-Latin American Relations: Theory and History. New York: Routledge.CrossRefGoogle Scholar
Williamson, John. 1990. What Washington Means by Policy Reform. In Latin American Adjustment: How Much Has Happened? ed. Williamson, . Washington, DC: Institute for International Economics. http://www.piie.com/publications/papers/paper.cfm?ResearchID=486 Google Scholar
Williamson, 2004. A Short History of the Washington Consensus. Paper presented at conference From the Washington Consensus Towards a New Global Governance. Barcelona, September 24–25. http://www.piie.com/content/?ID=1#topic3 Google Scholar
Wise, Carol, ed. 1998. The Post-NAFTA Political Economy: Mexico and the Western Hemisphere. University Park: Pennsylvania State University Press.Google Scholar
World Bank. 1989. World Development Report 1989: Financial Systems and Development. New York: Oxford University Press.Google Scholar
Zibechi, Raúl. 2006. IIRSA: Custom-Made for International Markets. June 13. Washington, DC: Americas Program, Center for International Policy. http://www.ciponline.org Google Scholar