Working Papers #31-40

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Agrarian Reform and the Peasantry in the Transition to Socialism in the Third World

Carmen Diana Deere*

Working Paper #31 - December 1984

Carmen Diana Deere is an Associate Professor of Economics at the University of Massachusetts-Amherst. During the Fall of 1984 she was a Faculty Fellow at the Kellogg Institute of the University of Notre Dame. She has written extensively about Latin American agrarian reform processes, peasant household economics and rural women in Latin America.

*This paper was prepared for the PACCA-CRIES-Social Science Research Council Seminar on "The Problems of Transition in Small, Peripheral Economics," held in Managua, Nicaragua, September 3-8, 1984. I am indebted to Lynn Duggan, Mieka Meurs, Hannah Roditi and Antonella Stirati for skillful research assistance, and to the Graduate School of the University of Massachusetts for a Faculty Research Grant to finance the research effort. Several colleagues were of tremendous assistance in this undertaking: Carollee Benglesdorf, Frank Holmquist, Nancy Wiegersma, Jeanne Henn, and Teodor Shanin. The participants in the Managua seminar considerably enriched my own thinking on the topic, particularly the two discussants, Peter Marchetti and Joe Collins. Most useful comments on the first draft of this paper were also provided by David Ruccio and by the members of the Western Massachusetts women in development study group.

Abstract

This paper is a preliminary attempt at a most difficult and challenging task-a synthesis of the agrarian reform experience of thirteen Third World countries which consider themselves to be in a transition to socialism. Particular emphasis is given to the relationship between the organization of production in the transition (whether state farms, production cooperatives or individual peasant holdings are favored) and the degree of rural worker and peasant participation in shaping the agrarian reform and the process of transition.

Resumen

Este ensayo representa un intento preliminar de sintetizar la experiencia de reforma agraria de trece paises del Tercer Mundo que se consideran en transición hacia el socialismo. Se dá atención especial a la relación entre la forma organizada de la producción (sea en forma de fincas estatales, cooperativas de producción o parcelas individuales) y el grado de participación de los trabajadores rurales y campesinos en la determinación del tipo de reforma agraria y el proceso mismo de la transición.

(83 pages)

Transitions from Above: Democratization in Brazil and Spain

Donald Share and Scott Mainwaring

Working Paper #32 - December 1984

Donald Share is Assistant Professor of Politics and Government at the University of Puget Sound. He is finishing a book on the transition to democracy in Spain, 1975-1982.

Scott Mainwaring is Assistant Professor of Government and Member of the Kellogg Institute of the University of Notre Dame. His book, The Catholic Church and Politics in Brazil, 1916-1985, was published by Stanford University Press in 1986.

The authors wish to thank Gabriel Almond, Karen Bernstein, Caroline Domingo, Peter McDonough, Guillermo O'Donnell, Wayne Selcher, and Eduardo Viola for helpful suggestions.

Abstract

This paper discusses transitions from authoritarian to democratic rule initiated by the elites of the authoritarian regime, focusing on Brazil and Spain. The first section of the paper describes some basic characteristics of "transitions from above." In the second section we address the seemingly paradoxical issue of why an authoritarian regime would decide to alter the rules of the game which had sustained its own existence. We argue that liberalization and democratization afford some advantages to the authoritarian elites, while at the same time minimizing the risks which are always present in political transitions. Yet while transition from above is often an appealing alternative, it is very difficult to effect. A third section of the paper discusses conditions which facilitate such transitions. Then in Section 4, we discuss salient differences between Spanish and Brazilian differences. In the concluding section, we analyze costs and benefits of transitions from above.

Resumen

Este trabajo analiza aquellas transiciones del autoritarismo a la democracia que son controladas por los elites del regimen autoritario, enfocando sobre todo los casos del Brasil (1973-85) y de la España (1975-82). La primera parte del trabajo describe algunas características básicas de estas "transiciones desde arriba." En la segunda parte discutimos por que un regimen autoritario decidiriá cambiar las reglas del juego que lo habián sostenido. Afirmamos que la liberalización y la democratización pueden beneficiar los elites autoritarios, al mismo tiempo que el carácter controlado de la transición minimiza los riesgos siempre presentes en todas transiciones políticas. Aunque puede ser una opción atractiva para muchos regímenes autoritarios, es difícil realizar una transición controlada. La tercera parte del trabajo analiza las condiciones que facilitan estas transiciones. En la cuarta parte, discutimos algunas diferencias sobresalientes entre los casos de Brasil y de España. Concluímos el trabajo con un análisis de los costos y beneficios de las transiciones controladas.

(68 pages)

New Social Movements, Political Culture, And Democracy: Brazil And Argentina

Scott Mainwaring and Eduardo Viola

Working Paper #33 - December 1984

Scott Mainwaring is Faculty Fellow of the Kellogg Institute for International Studies and Assistant Professor of Government at the University of Notre Dame. His book on The Catholic Church and Politics in Brazil, 1916-1985 was be published by Stanford University Press in 1986.

Eduardo Viola is Associate Professor of Political Science at the Federal University of Santa Catarina in Florianópolis, Brazil. During the 1983-1984 year he was Faculty Fellow of the Kellogg Institute at Notre Dame. He is finishing a book on the emergence, deterioration, and collapse of the democratic experience of 1973-1976 in Argentina.

The authors wish to thank Alejandro Foxley, Alexander Wilde, Anne Pérotin-Dumon, Christine Paige, Denis Goulet, Edelberto Torres-Rivas, Fred Dallmayr, Guillermo O'Donnell, Hector Leis, Herbert Kitschelt, James Holston, Juan Gabriel Valdes, and Julia Guivant for their stimulating criticisms and encouragement.

Abstract

This paper discusses the role of "new" social movements in the erosion of the authoritarian regimes and the transitions to democracy in Brazil and Argentina. We analyze both the contributions and limits of these social movements in helping to promote a more democratic order. The paper considers five movements: ecclesial base communities, neighborhood associations, and the feminist movement in Brazil; human rights organizations in Argentina; and ecological associations in both countries.

Resumen

Este trabajo trata del papel de algunos movimientos sociales "nuevos" en la erosión de los regímenes autoritários y en las transiciones a la democrácia en Brasil y Argentina. Anelizamos tanto las contribuciones como también los límites de estos movimientos en la contrucción de un ordén mas democrático. El trabajo considera cinco movimientos: comunidades ecclesiales de base, asociaciones de barrios y el movimiento feminista en el Brasil; organizaciones de derechos humanos en la Argentina; y asociaciones ecologistas en los dos países.

(78 pages)

Stabilization And Economic Justice: The Case Of Nicaragua

E.V.K. FitzGerald

Working Paper #34 - September l984

E.V.K. FitzGerald is Professor of Development Economics at the Institute for Social Studies in the Netherlands. He received his BA and MA from Oxford University and his Ph.D. in Economics from Cambridge University. For many years he served as Assistant Director of Development Studies at Cambridge University and then in advisory posts in Peru, Mexico, Algeria and Panama. At present he serves as Economic Advisor in the Presidential Office in Nicaragua. He is the author of three books and numerous chapters and articles on Latin America, financial policy, public investment theory, and peripheral accumulation. He is Editor of the Journal of Development Studies, and serves on the Boards of Latin America Research Review and the Bulletin of Latin American Research.

Abstract

In this paper Dr. FitzGerald addresses the issue of whether it is possible to design and implement a demand management policy which combines stabilization with economic justice in a mixed economy. He explains the sort of problems which the Nicaraguan government faced in the first few years after the l979 revolution in its attempt to put into practice an economically just stabilization policy.

The author describes this attempt in terms of the government's need to (l) secure the supply of basic needs through a program based on popular organization; (2) reduce the foreign exchange content of consumption; (3) cut non-basic consumption; (4) allow most of the burden of these policies to fall upon the upper and middle classes while trying to prevent mass migration of key producers, technicians and professionals; (5) improve the balance of payments by restoring export volume, deal with inherited debt and negotiate new finance; and (6) construct and apply internal financial balances consistent with both basic needs and the external account.

Resumen

En este trabajo el Dr. FitzGerald analiza la posibilidad de diseñar e implementar una política de demanda que combine estabilidad con justicia económica en una economía mixta. Explica los problemas con que el gobierno Nicaragüense se enfrentó en los primeros años tras la revolución de l979 en su intento de poner en practica una política económica de estabilización justa.

El autor describe este intento en términos de la necesidad por parte del gobierno de (1) asegurar la oferta de necesidades básicas a través de un programa basado en la organización popular; (2) reducir la proporción de productos externos en el consumo; (3) reducir el consumo no-básico; (4) permitir que la mayor parte de estas políticas recaigan sobre las clases medias y altas intentando a la vez frenar una emigración masiva de productores, técnicos y profesionales; (5) mejorar la balanza de pagos restaurando el volumen de exportaciones, tratar la deuda heredada y negociar nuevas finanzas; (6) construir y aplicar balances financieros internos consistentes con las necesidades básicas y la cuenta externa.

(20 pages)

Power Relations and Market Laws

Raúl Prebisch

Working Paper #35 - September 1984

Raúl Prebisch is currently Director of the CEPAL Review and Special Advisor to the Executive Secretary of the Economic Commission for Latin America. He graduated with a degree in Economics from the University of Buenos Aires, and soon held a professorship in Political Economy at the same University. Dr. Prebisch served as Under-Secretary of the Argentine Ministry of Finance, Director-General of the Latin American Institute for Economic and Social Planning, Secretary-General of the United Nations Conference on Trade and Development, and Special Representative of the Secretary General for the United Nations Emergency Operation. His particular concerns, as evidenced by his career work related to UNCTAD activities and his extensive publications, have been in the areas of trade and development problems for Third World countries, and North-South relations.

Abstract

According to neo-classical economic theory, the free play of market forces ensures that resources are allocated in the best possible way and that the fruits of technological progress are disseminated throughout society, leading to the steadily rising productivity of the system. This paper contends, however, that the concept of economic equilibrium is not adequate to deal with the structural phenomenon of the economic surplus nor, at the international level, with the structural imbalance between the periphery and the center. Conventional theories of development and income distribution fail to take into account social change and consequent changes in power relations. The author examines the various effects of appropriation of the surplus, power sharing by the labor force, and contractionary monetary policies, and concludes that at this stage in world history we have to recognize the need for economic regulation.

Resumen

De acuerdo con la teoría económica neoclásica, el libre juego de las fuerzas del mercado asegura que los recursos sean utilizados en la mejor forma posible y que los frutos del progreso tecnológico sean diseminados en la sociedad, así fomentando el aumento de la productividad del sistema. Este ensayo afirma, en cambio, que el concepto de equilibrio económico no es adecuado para tratar con el fenómeno estructural del superávit ni, a nivel internacional, con el balance estructural entre la periferia y el centro. Las teorías convencionales de desarrollo y distribución de ingresos no toman en consideración el cambio social y los cambios resultantes en las relaciones de poder. El autor examina los varios efectos de la apropiación del superávit, la distribución del poder por la fuerza de trabajo y las políticas monetarias restrictivas, y concluye que en esta face de la historia mundial tenemos que reconocer la necesidad de la regulación económica.

(33 pages)

The Methodological Basis of Hirschman's Development Economics: Pattern Model vs. General Laws

Charles K. Wilber and Steve Francis

Working Paper #36 - July 1984

Charles K. Wilber is Professor of Economics and Faculty Fellow of the Kellogg Institute at the University of Notre Dame. Steve Francis is a graduate research assistant in the Department of Economics of the University of Notre Dame.

This paper was first presented at the Hirschman Conference on Economic Development and Democracy, sponsored by the Kellogg Institute in April 1984. It was revised in July 1984.

Abstract

This paper attempts to understand the methodological foundations of Albert Hirschman's work in development economics. His work clearly differs from the formal and econometric approach of standard economics. Because of this Hirschman is often dismissed as a pamphleteer. This paper argues that Hirschman's work can be understood as an example of what philosophers of social science call holistic pattern modeling.

Resumen

Este trabajo intenta una comparación de los fundamentos metodologicos del trabajo de Albert Hirschman sobre economía de desarrollo. Su trabajo difiere claramente del enfoque formal y econométrico típico de la teoria económica tradicional. Por esta causa se acusa a Hirschman de panfletario. Este trabajo mantiene que el trabajo de Hirschman puede entenderse como un ejemplo de lo que los filósofos de las ciencias sociales denominan patrones totalizadores.

(36 pages)

Revisiting the Great Debt Crisis of 1982

Albert Fishlow

Working Paper #37 - May 1984

Albert Fishlow is Professor of Economics at the University of California, Berkeley. Dr. Fishlow is a distinguished specialist on Brazil and Latin America, having served as an advisor to the Brazilian Ministry of Planning for several years, as Deputy Assistant Secretary for Inter-American Affairs, and as an occasional consultant to the World Bank, Inter-American Development Bank and several foundations. At present, he serves on the editorial boards of Foreign Policy, International Organization and Latin American Research Review. In addition to numerous articles in professional journals, he has authored several books concerned with issues of income distribution in Brazil, and economic relations between industrialized and developing countries.

Abstract

This paper situates the problem of Latin American debt within the wider context of the world debt crisis. It demonstrates that this debt problem has immediate consequences. Moreover, it argues that the problem is not of short term duration: it will continue to haunt the debtor countries and the world financial system for some time. Ultimately, the economic and political dimensions of this crisis represent a failure of the market.

The origins of the current debt problem are analyzed in terms of both the disequilibrium of the international economy of the l970s and the domestic policies of developing countries in the transition from debt-led growth to growth-led debt. The position of expecting economic recovery in the industrialized countries to more or less automatically provide the solution to this debt crisis is called into question. Similarly, the far-reaching economic and political costs of the orthodox stabilization programs of the IMF are evaluated. In particular,the author suggests that these costs may undermine the democratization tendencies in Latin America. He concludes that only medium- and long-term policies of adjustment can successfully confront the simultaneous problems of debt and development.

Resumen

Este trabajo analiza el problema de la deuda latinoamericana dentro del contexto de la crisis mundial. Se argumenta que el problema de la deuda tiene consecuencias inmediatas. Sin embargo, no es a corto plazo: va a continuar como problema para los países deudores y el sistema financiero mundial por algún tiempo. Las dimensiones económicas y políticas de las crisis representan finalmente un fracaso del mercado.

Se analizan los orígenes del problema actual de la deuda en términos del desequilibrio de la economía internacional de los setentas, y de las políticas domésticas de los países en desarrollo en la transición de deuda concrecimiento a crecimiento con deuda. Se cuestiona la posición de esperar que una recuperación económica de los países industrializados de más o menos una solución automática a la crisis de la deuda. De igual modo, se analizan los costos económicos y políticos de los programas ortodoxos de estabilización del FMI. Estos costos pueden socavar las tendencias democráticas en América Latina. Solo las políticas de ajuste a medio y largo plazo pueden confrontar simultáneamente los problemas de deuda y desarrollo.

(46 pages)

Social Disarticulation in Latin American History

Alain de Janvry

Working Paper #38 - March 1984

Alain de Janvry is Professor of Agricultural Economics at the University of California, Berkeley. He received his Ph. D. from the University of California, Berkeley, and has since been active as an economic consultant and advisor for numerous development agencies and for governments of Third World countries. He is an internationally acclaimed specialist in rural development, agrarian reform, technological change and social equity, and has published extensively in these areas.

Abstract

This paper examines the interaction between economic policies and alternating democratic and authoritarian forms of government in the context of Latin American history, especially that of the Southern Cone. The author claims that redemocratization is doomed to failure in the long run unless it is accompanied by an economic model which translates productivity gains into wage gains, thus reconciling growth with equity. The only style of development capable of achieving this in the present circumstances is social articulation: a growth plan which is led by the production of wage goods and by the creation of effective demand for the domestic absorption of these wage goods, with trade controlled in such a way that it contributes to the articulation process.

Resumen

Este ensayo examina la interacción entre políticas económicas y las alternancias entre gobiernos democráticos y autoritarios en el contexto de la historia de América Latina, especialmente aquélla del Cono Sur. El autor afirma que la democratización está condenada a fracasar a largo plazo al menos que esté acompañada por un modelo económico que traduzca los aumentos productivos en aumentos salariales, reconciliando así el crecimiento con la equidad. El único modelo de desarrollo capaz de alcanzar esto en las circunstancias presentes es la articulación social: un camino de crecimiento dirigido por la producción de productos de consumo básico y por la creación de una demanda efectiva para la absorción doméstica de estos productos de consumo básico con un comercio controlado de tal manera que contribuya al proceso de la articulación.

(68 pages)

Industrial Policy and Industrialization in South Korea: 1961-1982: Lessons on Industrial Policies for Other Developing Countries

Kwan S. Kim

Working Paper # 39 - January 1985

Kwan S. Kim is Associate Professor of Economics and Faculty Fellow of the Kellogg Institute at the University of Notre Dame. He has occasionally served as an economic consultant for governments of developing countries and for international agencies. He has published extensively in the areas of trade and development, planning and industrialization, with a special interest in East Africa, East Asia and, recently, Mexico. He is currently preparing a monograph on Development Strategies, comparing South Korea and Mexico.

This project was initially supported by a seed-money grant from the Helen Kellogg Institute for International Studies at the University of Notre Dame, and later by a summer grant from the United Nations Industrial Development Organization. Appreciation is due to a number of colleagues of the Nacional Financiera/UNIDO Office in Mexico, the Kellogg Institute, and the Korean Economic Association in Seoul for many helpful comments. Special thanks go to Caroline Domingo for carefully reading through the manuscript. The views expressed in this paper are solely those of the author and should not be attributed to any organizations.

Abstract

This study reviews in depth Korea's industrial development policies and their impacts on the pattern of industrialization during the first two decades since the beginning of the First Five-Year Development Plan in l962. It examines how industrial policies have evolved, specifically focusing on how Korea's industrial policy frameworks have changed in response to changes in economic conditions in the world as well as in the domestic economy. In the analysis, the concept of industrial policy is delineated in terms of its objectives and choice of policy instruments as well as the mechanisms for policy formulation and implementation.

It is found that Korea's industrial development has overwhelmingly been guided by industrial policy which was well-articulatd in design and efficiently executed. In particular, evidence indicates that the overall macroeconomic policies affecting the pattern of industrial development have been effectively and consistently orchestrated with sector-targeted development policies. The study then concludes with a summary of the main findings and an evaluation of the various factors contributing to Korea's success.

Resumen

Este estudio analiza en profundidad la política de desarrollo industrial en Korea y sus impactos sobre los modelos de industrialización durante las dos primeras décadas a partir del Plan Quinquenal de Desarrollo comenzado en l962. Examina la evolución de la politica industrial, especialmente lo relacionado con su cambio en respuesta a los cambios de las condiciones de las economias mundial y nacional. En este trabajo el concepto de política industrial está delineado en términos de sus objetivos y escogencia de mecanismos políticos de formulación e implementación.

Se deduce que el desarrollo industrial de Korea ha sido totalmente guiado por la política industrial la cual fué bien articulada en su elaboración y eficientemente ejecutada. En particular la evidencia indica que toda la politica macroeconomica que afecta el modelo de desarrollo industrial, ha sido efectiva y consistentemente estructurada con politicas de desarrollo sectorial. El estudio concluye con un resumen de los principales resultados y una evaluación de los diferentes factores que contribuyeron al éxito de Korea.

(80 pages)

After Authoritarianism: Political Alternatives

Alejandro Foxley

Working Paper 40-May 1985

Alejandro Foxley holds the Helen Kellogg Institute Chair of International Development and is a Professor of Economics at the University of Notre Dame. He is currently writing a book on economic and political alternatives in Chile, supported by a Guggenheim fellowship. His recent publications include "Vulnerable Groups under Recessionary Conditions: The Case of Children and the Young in Chile," with D. Raczynski (in World Development, 1984) and "Después del monetarismo" in A. Foxley (Ed.), Reconstrucción económica para la democracia, (Santiago: Ed. Aconcagua, 1984). He is President of CIEPLAN (Corporación de Investigaciones Económicas para Latinoamérica.)

This paper was prepared for the conference on "Economic Development and Democracy," in honor of Albert Hirschman, sponsored by the Kellogg Institute of the University of Notre Dame, April 1984. The author wishes to thank various colleagues from CIEPLAN, and Paul Drake, Albert Hirschman, Guillermo O'Donnell and Alex Wilde for their helpful comments. The translation from Spanish was done by J. Kennedy and the editing by G. Steege. Their help is greatly appreciated.

Abstract

This paper explores some of the factors that contributed to the increasingly antagonistic character of development in Chile during the twenty-five years previous to the military coup of 1973. Special attention is given to the nature of the process of generating ideas, to the role that intellectuals played in the formation of ideology, and to the polarized and mutually exclusive character of the programmatic proposals of the main political parties in Chile.

The problem of the quality of politics is discussed. The consolidation of a political class relatively closed and little sensitive to the real agenda of the problems that confronted Chilean society in this period introduced distortions in the determination of objectives, in the forms of representation of interests, and in the resolution of conflicts.

The second part of the paper analyzes the options open for the future in the context of a democratization of Chilean society. The discussion focuses on the possible forms of politics, defined as types of relation between the political parties, the state and the social organizations.

Resumen

Este trabajo explora algunos de los factores que contribuyeron al caracter cada vez más antagónico del desarrollo de Chile durante las veinticinco años previos al golpe militar de 1973. Especial atención se da a la naturaleza del proceso de generación de ideas, al rol que jugaron los intelectuales en la ideologización, y al carácter polarizador y mutuamente excluyente de las propuestas programáticas de los principales partidos politícos en Chile.

Se discute el problema de la calidad de la política. La consolidación de una clase política relativamente cerrada y poco sensible a la agenda real de problemas que enfrentaba la sociedad chilena en este periodo introdujo distorsiónes en la determinación de objetivos, en las formas de representación de intereses y de resolución de conflictos.

La segunda parte del trabajo analiza las opciones abiertas a futuro en el contexto de una democratización de la sociedad chilena. La discusión se centra en las formas posibles de la política, definidas como los tipos de relación entre los partidos políticos, el estado y las organizaciónes sociales.

(36 pages)