Latin America’s financial globalization: the failure of an idealized international insertion

Through the analysis of net capital flows, both by regions and countries, this
article examines Latin America’s financial globalization during the last two
decades. From the global perspective, such process incorporates developed
countries and Latin America, in which the biggest economies of the region
are the most involved. The international financial integration of the region has
not occurred as it was drawn; the accomplished insertion is partial, broken,
and conditioned. This integration is conditioned, first, by historical financial
compromises (external debt and interests); and by an open exposure of local
markets to the effects of international financial inestability, due to the structural
backwardness and institutional fragility of the region. This facts mostly explain
the difficulties of the region towards its own economic growth.
Alfredo Sánchez Daza
Manuel Castillo Soto
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