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Verónica Rubio Vega | Post-crisis Responses and Prospects in Latin America
studying distinct dilemmas that states face in the emerging global regulatory
politics.
The post-crisis procedures and constraints analyzed in this paper
suggest that policy alternatives for any Latin American country are highly
dependent on ongoing political processes, productive structures and the
correlation of existing forces at the international, regional and domestic level.
The erosion of confidence in mainstream policies and in international
financial institutions has somewhat widened the room for experimenting
with post-2007 strategies. 64 Policy makers around Latin America have been
employing diverse types of Keynesian tools and somewhat attempting to
contribute to the development of a more diffuse international financial order
where non-global arrangements might play a more prominent role. 65
The
recent crisis has also demonstrated the importance of pragmatic mechanisms
for the region such as accumulating foreign exchange reserves and reducing
public sector external indebtedness in order to cope better with external
shocks.
However, as Alexander suggests, many low-income countries –
including those in Latin America – will remain dependent on external
assistance and private financial inflows, including remittances for addressing
66
post-crisis recovery. Further, the prevalent response of governments in
Latin America on both the centre-left and the right reflects an understanding
of the crisis as mainly a financial matter, an issue of regulating capital markets
64 Wade 160.
65 Chin 694.
66 Alexander 119.
171 | Mond.Idéalisation