Is Latin American Neostructuralism Sustainable?

Abstract

Purpose. This paper offers an evaluation of whether Latin American neostructuralism or post-neoliberalism can survive the current cycle of low global commodity prices.

Methodology. The paper relates to development economics and social sciences. The research could not be categorized into one philosophical theory, so to achieve the objectives, the research design was required to utilize both positivism and non-positivism. Data which was collected from international bodies is analysed and tested along with relevant economic modelling to offer an answer to the research question. Bolivia and Argentina were selected as case studies to offer a greater dichotomy regarding the sustainability of this Latin American discourse.

Findings. The paper demonstrates a heterogeneity between the key economic performance indicators achieved in Bolivia and Argentina. The research emphasises that the management of export revenues is a key criterion for the sustainability of the paradigm along with the commodity prices. State-funded welfare policies should address the marginalization of indigenous populations to secure the prosperity of the paradigm. This paper does not join the discussion surrounding varieties of capitalism, but will acknowledge the discussion and advise on further research.

Originality. The sustainability of this economic paradigm, which gained left-wing acclaim at the turn of the millennium, is now threatened for the first time by falling export revenues. The very tenets of the paradigm are being tested. This paper is original and relevant to academics in the field of development economics, politics, and business.