Open Economy,Closed Polity?

This observation is based on the reactions of students to a course taught jointly by Hugh Patrick and myself at Yale University on the Economic History of Follower Countries. The students have often remarked on the manner in which the Latin American section of the course spends much more time dealing with the external sector than does the Japanese half of the course; though, of course, this may be due to the idiosyncracies of the teachers involved.

For an overview of Samir Amin's and others arguments extolling the virtues of withdrawal or "delinking" from the international economy, see Carlos F. Diaz Alejandro , "De-linking North and South: Unshackled or Unhinged?", in Albert Fishlow , et al., Rich and Poor Nations in the World Economy ( New York: McGraw Hill Book Company, 1978), pp. 87-172.

W. Arthur Lewis, The Evolution of the International Economic Order ( Princeton, NJ: Princeton University Press, 1978), pp. 5-6.

See Max Winkler , Investments of United States Capital in Latin America (New York; Kennikat Press , 1971 reprint of original 1928 edition), pp. 276, 278, 283 and 286-7.

For my interpretation of these events see "Latin America in Depression, 1929-1939", and "Stories of the 1930s and 1980s", Yale Economic Growth Centre Discussion Papers, No. 344, March 1980 and No. 376, April 1981, respectively.

See his brilliant "The turn to authoritarianism in Latin America and the Search for its economic determinants", in David Collier (ed.), The New Authoritarianism in Latin America (Princeton, NJ: Princeton University Press, 1979), pp. 61-98. The letter from Peron to Ibanez appears on p. 65.

See United Nations Economic Commission for Latin America, Economic Survey of Latin America 1951-1952 (United Nations document E/CN. 12/29 1 /Rev. 1, 28 March 1953), p. xxii.

See Michael Manley , "Exports and growth: An empirical investigation ", Journal of Development Economics (Volume 4, No. 1, March 1977 ), pp. 49-54; and Michael Manley , "Export and growth: A reply", Journal of Development Economics (Volume 6, No. I, March 1979), pp. 141-143.

See Stephany Griffiths Jones , "Transnational Finance and National Development: Past Trends and Future Prospects", in D. Tussie (ed.) Latin America and the World Economy: New Perspectives (forthcoming); and E. Bacha and Carlos F. Diaz Alejandro , "Financial markets: a view from the semi-periphery", a paper presented as part of a project on External Financial Relations and Their Impact on the Latin American Economies, carried out under the co-ordination of CIEPLAN and with the support of the Ford Foundation.

See John F. O. Bilson , "Civil Liberty - An Economic Investigation" Kyklos (forthcoming, January 1982). Bilson also concludes: there is no clear evidence that a gradual move towards greater government intervention in a democratic state will be associated with a decline in civil liberty. There is, however, a clear and predictable correlation between the concentration in the political system and the extent of personal freedom. In other words, if an individual is told that a country is capitalist this information is not very informative with regard to the extent of civil liberty in that country. On the other hand, if the individual is told that the country has a multi-party political system, this information is valuable.

See John Sheahan , "Market-Oriented Economic Policies and Political Repression in Latin America", Economic Development and Cultural Change (Vol. 28, No. 2, January 1980), pp. 267-291.

The matter is discussed in my "Latin America and the World Economy in the 1980s", Economic Forum (Vol. XI, No. 2, Winter 1980 -81), pp. 38-53. For interesting proposals for reforming major international organisations see Miriam Camps and Catherine Gwin , Collective Management: The Reform of Global Economic Organisations (New York: McGraw Hill Book Company, 1981). Hungary and Poland applied during 1981 for admission to the International Monetary Fund and the World Bank; China joined both of these organisations earlier. It remains to be seen whether a similar trend towards globalisation will occur in GATT.

See Business Week November 9, 1981, p. 29. Not all Northern capitalists, of course, will fear Southern export expansion. In terms of international trade models, attitudes will depend on the degree of mobility, domestic and international, of different factors of production.