Date Published:
Aug 1, 2009
Abstract:
Most analysts of the modern Latin American economy hold to a pessimistic belief in
historical persistence—they believe that Latin America has always had very high levels
of inequality, suggesting it will be hard for modern social policy to create a more
egalitarian society. This paper argues that this conclusion is not supported by what little
evidence we have. The persistence view is based on an historical literature which has
made little or no effort to be comparative. Modern analysts see a more unequal Latin
America compared with Asia and the rich post-industrial nations and then assume that
this must always have been true. Indeed, some have argued that high inequality appeared
very early in the post-conquest Americas, and that this fact supported rent-seeking and
anti-growth institutions which help explain the disappointing growth performance we
observe there even today. This paper argues to the contrary. Compared with the rest of
the world, inequality was
not high in pre-conquest 1491, nor was it high in the postconquest
decades following 1492. Indeed, it was not even high in the mid-19th century
just prior Latin America’s
belle époque. It only became high thereafter. Historical
persistence in Latin American inequality is a myth.
Notes:
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