Understand the significant trends in economics between 1950s/60s; the 1970s; the 1980s; and the 1990s (be familiar with the debt crisis and the responses)
1950s/60s - WW2→ surge of need for primary products until 60s. Import substitution: protect national industries, produce locally. In order to keep wage costs down (in national industries) government also kept food prices down which then negatively affected the peasantry.
1970s - The Lost Decade. Countries such as Brazil, Agentina, Mexico (and others) borrowed heavily during the 1970s to fund industrialization projects. With OPEC and increase in oil prices of mid 70s, Latin American importers of oil faced higher import costs; a the same time world economy slowed down.
1980s - In the early 1980s interest rates also inceased in the US and Europe. As growth in most Latin American countries slowed down they struggled to repay even the minimum foreign debt payments. By 1984 almost all Latin American countries had made a deal with the IMF about how to make their debt payment plan. IMF coerced countries to cut social spending. In the late 1980s many governments began to sell away their countries’ industries, privatizing businesses formerly under state control. Politically to the right (right wing US capitalist allies)
1990s - according to neoliberalism there was this idea that people were responsible for the service aspect of their community. “opening up” and de-regulating the economy in the name of the “free market”. Created better climate for foreign investment. Privatizing state companies (mining, oil, water), and basic services (infrastructure, health care, education). Curtailing state-sponsored services and programs, private sector or NGO initiatives to fill the vacuum left by the State.