The document summarizes why productivity growth has stagnated in most Latin American countries since neo-liberal reforms were implemented. It argues that the weakness stems both from flaws in neo-liberalism itself and how it was implemented in the region. In Latin America, neo-liberal reforms were seen as reversing previous import substitution industrialization policies due to the 1982 debt crisis, whereas in Asia reforms were more pragmatic and aimed at strengthening industrialization. As a result, neo-liberalism has been more rigidly applied and unsuccessfully in Latin America compared to the mixed approach and success seen in Asia.
The document summarizes why productivity growth has stagnated in most Latin American countries since neo-liberal reforms were implemented. It argues that the weakness stems both from flaws i…