ISSN electrónico: 2007-8951
Volumen 49/ Número 194, julio-septiembre 2018

Foreign Exchange Deregulation, Capital Flight, and Debt: The Recent Experience in Argentina

Magdalena Rua, Nicolás Zeolla

In 2011, Argentina began to implement a series of foreign exchange controls, going so far as to prohibit the acquisition of foreign currency for non-productive purposes. In December 2015, after the change of administration, all of the foreign exchange regulations were eliminated and returned to their pre-2001-2002 crisis levels. These reforms were implemented under the mainstreaming vision, with the expectation that capital outflows would be reversed. Nevertheless, after the controls were lifted, according to information from the foreign exchange balance kept by the Central Bank of Argentina (BCRA) on Foreign Asset Formation (FAF), one year later, capital flight abroad had doubled. This increased currency outflow was financed by rising foreign debt.

Key Words: Foreign exchange market; banking regulations; capital flight; foreign debt; accumulation pattern.

Accountability and the Allocation of Public Debt by the Mexico City Government

Marcela Astudillo, Raúl Porras

This paper explores the Mexico City Government’s accountability with respect to public debt in the time period 1999-2015. The questions we pose are as follows: To which projects were resources emanating from public debt allocated? Did the accountability mechanisms make it possible to evaluate the projects funded with public debt? Although the laws stipulate that entities are bound to be transparent about their allocation of debt, there is clearly only partial accountability when it comes to all of the funding models, including: private banking, development banking, the stock market, and public-private partnerships (PPP). Moreover, the opacity is total where evaluating outcomes is concerned. Using a cointegration test for debt and public investment, we assert that total public debt has some effect on the behavior of public investment in Mexico City.

Key Words: Mexico City; accountability; public debt; public investment; public finance.

Capital Accumulation and State Growth in Mexico: A Panel Data Analysis

Domingo Rodríguez Benavides, Miguel Ángel Mendoza González, Miguel Ángel Martínez García

This paper studies the link between economic growth and state industrial capital stock accumulation using panel data techniques in the time period 1960-2012. The analysis is done in two moments: the age of national industrialization (1960-1982) and the structural reform era (1983-2012). The results point to a long-term relationship in both periods, but with a sign opposite of the expected sign in the latter, suggesting that the deceleration of industrial capital can explain the slowdown over the past three decades. This result is confirmed with the decline of manufacturing, as well as other economic indicators. The causality tests demonstrate two-way causality between the two variables, evincing a virtuous cycle between growth and accumulation.

Key Words: Industrialization; economic growth; capital accumulation; investment; panel data.

Government Policy vs. Public Policy: Avatars for the Wind Farms on the Isthmus of Tehuantepec

Roberto Diego Quintana

The government of Mexico has encouraged the establishment of wind farms, arguing that they are a form of clean energy (partially true). The government’s implementation strategy has favored transnational corporations over the original communities, who are losing control of their territories, which these companies have occupied, engendering ecological, social, political, and cultural damage. On the Isthmus of Tehuantepec, a significant portion of the original population has organized to resist and reverse this process, calling for an inclusive and participatory public policy.

Key Words: Isthmus of Tehuantepec; wind farms; electrical power; transnational companies; public policy.

Large-Scale Mining and Socia Conflicts: Analysis of Southern Ecuador

Priscilla Massa-Sánchez, Rosa del Cisne Arcos, Daniel Maldonado

This research analyzes how the mining law has performed with respect to large-scale mining projects, looking at the Mirador project as a case study. Specifically, we delve into citizen participation and land tenure during the project execution phase. The information we use was taken from the literature, as well as from interviews given to the inhabitants of the zone directly influenced by the project, and semi-structured interviews with key informants and community leaders. The main results point to the existence of social conflicts and discontent among the settlers, as they seem not to be taken into account in decision-making processes.

Key Words: Mining; Mirador project; transnational companies; mining legislation; social conflicts.

Uneven Development and Intensified Labor in the Eurozone

Fahd Boundi Chraki

The objective of this research is to furnish empirical evidence to support the hypothesis that unequal development in the Eurozone is explained by discrepancies in the amount of intensified labor with respect to mean social labor in the region. To do so, a dynamic panel data model was built, consisting of the top seven countries in the Eurozone and their respective manufacturing sectors in the time period 2000-2014. The Granger causality test indicates that intra-sectoral disparities in capital compensation are spurred by the relative levels of real unit labor costs, capital intensity, and the accumulation rate.

Key Words:Eurozone; intensified labor; unequal development; manufacturing sector; dynamic panel data.

The Impact of Veblen’s Imperial Germany on Structuralist Approaches and Dependency Theory

William Baca

This paper identifies the similarities and differences among Latin American structuralism, dependency theory, and Thorstein Veblen’s Imperial Germany (1915), exploring the connection on such as aspects as path dependency, technology, and economic policy. Imperial Germany is similar to many of the principal policy recommendations espoused by the structuralists and dependency theorists. Nevertheless, structuralism is closer to the ideas of the institutionalists and Veblen himself. In conclusions, the structuralists and Veblen’s version in Imperial Germany agree that an industrial policy ought to be guided by the government, even though Veblen and the institutionalists clearly see social change through technological improvement, which is missing from structuralism.

Key Words:Latin America; structuralism; dependency theory; Thorstein Veblen; economic development.