Latin America

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Latin America Costa Rica

• ECO 6958 ECO 4955

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1. Latin America

• Territories in the Americas where the Spanish or
  Portuguese languages prevail
• Central and South America
• Argentina Bolivia Brazil Chile
  Colombia Costa Rica
• Ecuador El Salvador Guatemala
  Honduras Mexico Nicaragua
• Panama Paraguay Peru
• Uruguay Venezuela
• All independent nations

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• Some the economies of Latin America are currently
  described as emerging economies
• Mainly middle-income countries that are growing
  and becoming more integrated in the global
  economy
• Argentina Brazil Chile
• Colombia Costa Rica Mexico
• Venezuela

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2. Theories of Economic Development

• Linear Stages Theory (Walt Rostow, 1960) a
  series of successive stages of economic growth
  through which all countries must pass.
• Traditional society
• Preconditions for take off Costa Rica
• Take-off
• Drive to maturity
• The age of mass consumption

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• Structural Change Models of Development
• Agriculture to manufacturing
• Import substitution
• Export promotion
• Change in the pattern of development (structure
  of production, employment, consumption trade)

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• The dualistic-development model
• Two distinct sectors (labor intensive sector -
  inferior sector, and a capital intensive sector -
  superior sector)
• Both sectors act independently
• The superior elements do nothing to pull up the
  inferior element or cause any benefit to trickle
  down to the inferior elements.

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3. Costa Rica

• A stable economy that depends on tourism,
  agriculture, and electronics exports.
• Political stability and free-trade zones serve to
  attract foreign investment

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4. Achieving Sustainable Development in Costa Rica

• Sustainable Development
• Achieving economic and social development in ways
  that do not exhaust the nations natural
  resources by conserving resources, protecting
  the environment, and ensuring human health and
  welfare
• A process of change in which the exploitation of
  resources, the direction of investments, the
  orientation of technological development, and
  institutional change are made consistent with the
  future as well as present needs

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• Preconditions/Conditions for Sustainable
  Development
• Development must meet the globalization challenge
  successfully
• Collaborative efforts among world leaders to
  address global issues (alliances, integration,
  collaboration, and partnerships that work towards
  a global polity)
• Must have the capacity to make friends with the
  outside world

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• Sustainable development needs good, efficient,
  working public institutions and good governance
  with clear and focused objectives
• Solutions must be implemented in a nonpolitical
  and professional way
• A modern vision of the world (where the world is
  and where it is heading) connectivity with the
  outside world is very important
• A strategy (plan) to deal with the modern world
  need to distinguish between a national plan and a
  government plan.

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• Integrated Elements of Sustainable Development
• A good sound macroeconomic balance
• Sound economic policies within countries
• Leader must be surrounded with good ideas and
  propositions
• Strategic human development primarily in health
  and education
• Ex. Costa Rica educational system must change to
  harvest knowledge in a way to meet the
  challenges of globalization
• Environmental pro-activeness