Inequality and Instability: A Study of the World Economy Just before the Great Crisis

By James K. Galbraith | Go to book overview

CHAPTER 11
Finance and Power in Argentina
and Brazil

The shift from China to South America is a move from a vast but idiosyncratic postcommunist case to something much more familiar: middle-income countries in the throes of financial globalization. This chapter compares the evolution of pay inequalities in Argentina and Brazil from the early 1990s through 2007.1 The data cover the period of high neoliberalism in world policy, the crisis in each country, and their aftermath. In both countries, it turns out that the financial sector was the biggest single contributor to inequality and also to change in inequality. In both, the years leading up to crisis saw a big increase in the economic weight, power, and income of the banks. And then there was a decline in that weight as the crisis passed, economic growth was restored, and a more normal situation returned. In both countries, but especially in Brazil, the retreat of finance created economic space that was taken up by an expanding public sector alongside a truly dramatic reduction in deep poverty that marks Brazil as one of the success stories of the early twenty-first century.

What is different between the two cases is the timing. In Brazil, the return to a normal path of growth and development, associated with a decline in measured inequality as well as major progress against poverty, began to happen in the mid-1990s. In Argentina, it occurred only after the crisis in December 2001. By monitoring these developments soon after they occurred, Galbraith, Spagnolo, and Pinto (2007d, originally published 2006) were able to establish that inequality in these two major Latin American countries was in fact declining four years before this fact won wide notice in the larger literature on inequality in Latin America (López-Calva and Lustig, 2010).

-252-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Inequality and Instability: A Study of the World Economy Just before the Great Crisis
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 324

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.