The Failures of Neoliberalism in Argentina

Abstract

Abstract: In the wake of the 1970 crisis, neoliberalism emerged as the dominant approach to economic development throughout the world. As a region faced with particularly difficult economic challenges, even Latin America has not been spared from the pervasiveness and dominance of neoliberal policy. Rooted in neoclassical theory, the arrival of neoliberalism displaced Latin American contributions for development that predominated during the postwar period, which highlighted the importance of the state in directing an industrialization strategy that allows peripheral economies to develop. In the case of Argentina, neoliberalism was supposed to overcome structural heterogeneity and economic unbalances inherited from state-led industrialization through policies oriented to liberalize the economy and downsize the state. However, contrary to these suppositions, neoliberalism tended to reinforce the peripheral positioning of Argentina in the global economy, as well as to deepen social and economic inequality.