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Developing Country Debt and Economic Performance, Volume 2: The Country Studies -- Argentina, Bolivia, Brazil, Mexico

Authors
Disciplines
  • Agricultural Science
  • Economics
  • Political Science

Abstract

The Lopez Portillo Administration This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Developing Country Debt and Economic Performance, Volume 2: The Country Studies -- Argentina, Bolivia, Brazil, Mexico Volume Author/Editor: Jeffrey D. Sachs, editor Volume Publisher: University of Chicago Press, 1990 Volume ISBN: 0-226-73333-5 Volume URL: http://www.nber.org/books/sach90-1 Conference Date: September 21-23, 1987 Publication Date: January 1990 Chapter Title: The Lopez Portillo Administration Chapter Author: Edward Buffie Chapter URL: http://www.nber.org/chapters/c8958 Chapter pages in book: (p. 428 - 447) 428 Edward F. Buffie 3.2 Concluding Observations The Echeverria economic program was a clear failure. For a couple of years following the 1971 recession, output grew strongly. The 1972-74 expansion was necessarily temporary, however, given the fundamental economic imbalances created by large fiscal deficits and mismanaged monetary policy. In the administration’s last two years, output and employment growth slowed consid- erably while inflationary and balance of payments pressures became extreme. Distributional considerations do not alter this assessment. None of the studies discussed in the previous chapter turn up any evidence that the overall disthbution of income improved.’ Nor does a less formal examina- tion of Echeverria’s policies suggest that they benefitted either the urban or rural poor. The real blue-collar manufacturing wage grew at a slower pace than during Stabilizing Development. Public investment in agriculture increased initially but was later severely reduced when budgetary problems became acute in 1975 and 1976. Overall, the agricultural sector stagnated, experiencing average annual growth of only 2.6 percent. The Echevem’a administration failed politically as well as economically. The crisis of political legitimacy that came to the fore in 1968 was never squa

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