The 1980s: Economic Revolution in Latin America, Continuing Development in Asia

The 1980s were, from an economic growth point of view, a lost decade for Latin America, while most countries in Asia continued to grow at relatively high rates. As a result, in Latin America an economic revolution is taking place. Markets are being liberalized, the economies are becoming more outward-looking, and fiscal discipline is stressed. The examples of some of the most successful Asian economies are not insignificant in this endeavour. This article explains the reasons for the adoption of past economic policies in Latin America and searches for factors which might predict the direction of change, highlighting the influence of the experience of the Asian economies in this process.