Question 1

In the decades after World War II, the United Nations Economic Commission on Latin America...
A) Promoted the ideas of the Washington Consensus
B) Strongly promoted free trade
C) Was supportive of import substitution and the doctrine of "structuralism"
D) Was strongly influenced by Marxist ideas and rejected import substitution

Accepted Answer

The United Nations Economic Commission on Latin America (ECLA, later known as ECLAC) was supportive of import substitution industrialization (ISI) and the doctrine of "structuralism." Structuralism emphasized the need for developing countries to transform their economic structures by developing internal markets and reducing dependence on volatile external markets. This approach was in contrast to the Washington Consensus policies of liberalization and free trade that became prominent later.

Question 2

Rostow's theory of modernization, published in 1960, predicted:
A) Latin American economic development efforts were about to crash economically and politically
B) Several Latin American countries were on the verge of a take off and about to grow into mature industrial societies
C) Communism would no longer be a threat to Latin America because Latin America was going through modernization
D) Latin American countries would soon fall into dictatorships

Accepted Answer

Rostow's theory of modernization, particularly outlined in his "stages of economic growth" model, posited that countries pass through five stages of economic development. The "take-off" stage, which he believed several Latin American countries were approaching or entering at the time, is characterized by rapid growth and lays the foundation for a country to develop into a mature industrial society. This theory was optimistic about the economic prospects of developing countries, including those in Latin America.

Question 3

Rostow and Marx's theories of development and change had in common:
A) That both weres based on the idea that all countries pass through through historical stages
B) That dictatorships would be needed to steer countries from underdevelopment to development
C) That the industrial bourgeoisie and the working class had to work together to achieve development
D) That the colonized areas of the globe should concentrate on agriculture rather than industrialization

Accepted Answer

Both Rostow's stages of economic growth model and Marx's historical materialism suggest that societies progress through a series of stages. Rostow outlines five stages from traditional society to the age of high mass consumption, while Marx describes a progression through modes of production, such as from feudalism to capitalism and eventually to communism.

Question 4

Early dependency theory, associated with Andre Gundar Frank, contended that:
A) Foreign investment promotes economic growth
B) Foreign investment works to underdevelop Third World countries
C) Foreign investment in mining is productive, but not in industry
D) Foreign investment is a necessary stage for capitalist development

Accepted Answer

Early dependency theory, particularly as associated with Andre Gunder Frank, argued that foreign investment and the economic policies and structures it encouraged, far from promoting economic development, actually led to the underdevelopment of Third World countries. This perspective challenges more traditional views that foreign investment is a catalyst for economic growth, suggesting instead that it perpetuates a cycle of dependency and economic disparity.

Question 5

Structuralists called inefficient agriculture and income inequality...
A) Neocolonialism
B) Associated dependency
C) Bottlenecks for economic growth
D) Neofeudalism

Accepted Answer

Structuralists view inefficient agriculture and income inequality as bottlenecks for economic growth, as these issues can hinder the overall economic development and progress of a country by limiting the efficient use of resources and contributing to social and economic disparities.

Question 6

Dependistas and Moscow-oriented Communists were both part of the Latin American left, but they differed about political strategy, in part, because...
A) Communists believed that Latin American societies were still feudal, so the countries would have to go through capitalism before socialism or communism was possible.
B) Communists belieived Latin American workers were ready to make a revolution immediately, dependistas wanted reform
C) The Communists were mostly foreign immigrants from Eastern Europe.
D) Communists refused to believe that participating in elections or organizing unions were worth the effort politically

Accepted Answer

Communists believed that Latin American societies were still in a feudal stage and needed to transition through capitalism before achieving socialism or communism, which contrasts with other leftist views that might have advocated for immediate revolutionary change or different strategies for societal transformation.

Question 7

Within the framework of world systems theory, most would say Brazil is part of the:
A) Core
B) Hegmonic core
C) Periphery
D) Semi-periphery

Accepted Answer

World Systems Theory categorizes countries into core, periphery, and semi-periphery based on their level of development and position in the global economy. Brazil is often classified as a semi-periphery country because it has characteristics of both developed (core) and developing (periphery) nations, with a growing industrial base and significant economic inequalities.

Question 8

Which of the following factors contributed to the exhaustion of import substitution as a develoment policy in Latin America?
A) Factories began to produce for export rather than domestic markets.
B) Not enough labor was available to staff factories..
C) Domestic tariff barriers discouraged factory owners from modernizing to compete with factories in the first world.
D) Latin American employees were unwilling to work hard

Accepted Answer

Import substitution policies in Latin America eventually faced limitations as domestic industries, protected by high tariffs, had little incentive to modernize or improve efficiency. This lack of competitiveness made it difficult for these industries to compete on a global scale, contributing to the policy's exhaustion.

Question 9

The 1980s were a "lost decde" because:
A) Populist leaders came to power and set back economic growth
B) Powerful unions and vested interests blocked needed reforms
C) There was very little or no economic growth in the region due to foreign debt
D) Wars in Central America and the Southern Cone disrupted economies

Accepted Answer

The term "lost decade" refers to the 1980s in Latin America, where countries experienced stagnant economic growth primarily due to the burden of foreign debt, which limited their economic development and led to a period of economic crisis.

Question 10

What role did global banks play in generating the debt crisis?
A) They refused to make loans to Latin America
B) They did not have funds to make new loans.
C) They made loans to Latin America because they figured governments can't go bankrupt
D) They could not charge high enough interest rates to make a profit.

Accepted Answer

Global banks played a significant role in generating the debt crisis by making loans to Latin American countries under the assumption that governments cannot go bankrupt. This led to excessive borrowing and contributed to the debt crisis when these countries were unable to repay their loans.

Question 11

Which of the following measures is NOT a typical part of a structural adjustment package?
A) Increased government spending to stimulate demand
B) Privatization
C) Lowering of tariff barriers to promote free trade
D) Tax reforms to increase government revenues

Accepted Answer

Structural adjustment packages typically include measures aimed at reducing government spending, rather than increasing it, to correct fiscal imbalances. Privatization, lowering tariff barriers, and tax reforms are common components aimed at making the economy more efficient and competitive.

Question 12

Which country in Latin America stood out to neoliberals in the 1990s as a success story?
A) Brazil
B) Chile
C) Venezuela
D) Argentina

Accepted Answer

Chile stood out to neoliberals in the 1990s as a success story due to its economic reforms, market liberalization, and strong economic growth during that period.

Question 13

Which statement most closely reflects Cuba's experience after the collapse of the Communist Bloc in 1989-1991?
A) It avoided the economic collapse by borrowing from the new Russian Federation.
B) The collapse of the Soviet Union was the needed stimulus to make reforms that produced significant economic growth.
C) The end of Soviet subsidies and markets created economic crisis, but the regime survived with planning and shared sacrifice.
D) Only the deployment of the army and crackdowns on dissent allowed the regime to survive.

Accepted Answer

The collapse of the Soviet Union led to the loss of subsidies and markets for Cuba, plunging it into a severe economic crisis known as the "Special Period." Despite the hardships, the Cuban government managed to survive through a combination of economic adjustments, rationing, and the resilience of the Cuban people, without relying heavily on external borrowing or military force to maintain order.

Quiz 7: Development and Dependency: Theory and Practice in Latin America

In the decades after World War II, the United Nations Economic Commission on Latin America...

Rostow's theory of modernization, published in 1960, predicted:

Rostow and Marx's theories of development and change had in common:

Early dependency theory, associated with Andre Gundar Frank, contended that:

Structuralists called inefficient agriculture and income inequality...

Dependistas and Moscow-oriented Communists were both part of the Latin American left, but they differed about political strategy, in part, because...

Within the framework of world systems theory, most would say Brazil is part of the:

Which of the following factors contributed to the exhaustion of import substitution as a develoment policy in Latin America?

The 1980s were a "lost decde" because:

What role did global banks play in generating the debt crisis?

Which of the following measures is NOT a typical part of a structural adjustment package?

Which country in Latin America stood out to neoliberals in the 1990s as a success story?

Which statement most closely reflects Cuba's experience after the collapse of the Communist Bloc in 1989-1991?