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Question about Politics and Economy: Latin America in the Post-Military Dictatorship

History

Originais Teachy

Politics and Economy: Latin America in the Post-Military Dictatorship

Hard

(Originais Teachy 2024) - Question Hard of History

With the end of the civil-military dictatorships in Latin America in the 1980s, the need emerged not only for political restructuring, but also for significant economic reforms. These reforms, often related to the phenomenon known as 'Neoliberalism', aimed to liberalize economies, privatize state-owned companies, and reduce the role of the State in the economy. The economist and Nobel Prize in Economics, Milton Friedman, was one of the main advocates of these policies, arguing that 'the only social responsibility of companies is to increase their profits'. Considering the historical context and the principles of Neoliberalism, analyze the following quote from Friedman: 'If we put the government in charge of the Sahara Desert, within five years there would be a shortage of sand.' (Milton Friedman, Capitalism and Freedom) Based on this statement, discuss how Neoliberalism, applied in the post-dictatorships context, could have contributed to the social and economic challenges faced by Latin American countries in the process of transitioning to and establishing democratic governments.
a.
The adoption of Neoliberalism in the post-dictatorships period in Latin America had no significant impact on unemployment, keeping the public sector as the main job generator and promoting economic stability without experiencing financial crises.
b.
The Neoliberalism, when implemented in Latin American countries, quickly promoted social inclusion and the reduction of economic inequalities, stabilizing economies and strengthening the role of the State in providing basic services.
c.
In the post-dictatorships context, Neoliberal reforms in Latin America strengthened unions and the participation of workers in economic decisions, resulting in a more equitable distribution of profits from private companies.
d.
Neoliberalism, applied in the post-dictatorships context in Latin America, contributed to social challenges such as unemployment and inequalities, and to economic challenges with financial crises and the emergence of monopolies or oligopolies in strategic sectors.
e.
The Neoliberal policies applied in Latin America during the democratic transition reinforced the role of state-owned companies and increased public investment, significantly contributing to the reduction of external debt and sustainable economic growth.

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