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Latin America under Fire! What is to Be Done?

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The past few months have witnessed violent demonstrations in several Latin American countries, including Chile, the only country from the region (other than Mexico) to have joined the OECD, the rich-country club. Moises Naim and Brian Winter recently published a thoughtful article in Foreign Affairs, titled “Why Latin America Was Primed to Explode”(October 29), in which they make a strong case that following the commodity boom of the early part of the previous decade the recent past has seen a sharp deceleration of economic growth. “Against the backdrop of stagnating wages and rising costs of living, indignities such as inequality and corruption have become more difficult for many people to swallow,” they persuasively argue. I put forward here some reflections on the economic growth debate and what this means for Latin America.
What about economic growth?

Economists—I am one of them—have long studied and argued about the sources and consequences of economic growth. The great development…