Capitalism in Latin America

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Capitalism in Latin America and the Doctrine Shock

The evolution of capitalism is always associated with the development of democracy . In the West , capitalism prospered in countries which adopted the liberal form of government (Britain , France , and the United States . For many economists , market reforms , the institutionalization of free market values , and a general integration of economies to the global economy , can only be achieved under a liberal form of government Klein , however , argued that such assumption is never true for all countries

(Klein , 41 . In Latin America , the privatization of economies occurred not because it was supported democratically but because they were pushed through while the citizens of those countries suffered from the onslaught of economic crises

The creation of a global economy is never the result of democracy . The economic contracts created after the Second World War by the Allied Powers were designed to increase the economic standing of their economies (Klein , 23 . Economic integration only boosted the war exhausted economies of the Allied countries . This claim , however insufficient , seemed to be logical . After three years following the Second World War , the overall aggregate output of the United States fell by about 30 . The Bretton Woods Agreement which was initiated by the US government served as a fundamental solution to the US economic problem Not only it increased the terms of trade of the United States , it also gave the United States significant control over a large part of the world economy

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