Latin America: disarticulation, productive stagnation and financing

Abstract

The objective of this article is to analyze the principle effects of the deregulated financial system on the economy and production in Latin America. The article maintains that beginning with the Washington Consensus, financial liberalization has modified the productive structures and the institutions of the region. However, despite the profound changes in financial systems, there has not been any increase in credit directed to productive activity. To the contrary, a rentier structure has been created, based on a financial system that seeks to obtain short-term profits, incorporating the budgets of nation states as part of this type of rent-seeking activities.