Latin American developmental economics fell on the 1980s debt crisis.

Evidence

Those old ideas, from the 1960s and 1970s, were the work of old-school Latin American developmental economists who championed industrial policy and other state-led industrialization projects. By the late 1980s, they were very much out of fashion, having foundered on the rocks of the Latin American debt crisis of the 1980s. Williamson’s new policy ideas were, in contrast, drawn from “ideas that had long been accepted as appropriate within the OECD.” As such, the failed old ideas that accepted a positive role for the state in economic development were juxtaposed with the new antistatist neoliberal ideas of the already successful, developed North. — Mark Blyth, Austerity, 434

Categorization

• XREF: The defeat of state-led developmentalism is a key hinge in the global austerity story that connects to Mattei. — connects to: Applied development economics theory produced disastrous results across Latin America; The 1980s debt crisis fueled the Washington Consensus’ rejection of import substitution — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 1732; Latin America’s debt crisis opened a window for neoliberal network expansion — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 551 (+2 more)

Broader Connections

• The 1980s debt crisis fueled the Washington Consensus’ rejection of import substitution #expands (0.90) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1732
• Latin America’s debt crisis opened a window for neoliberal network expansion #expands (0.90) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 551
• Applied development economics theory produced disastrous results across Latin America #expands (0.85)
• Third World debt crisis enabled 1980s liberalization, not just neoliberal advocacy. #expands (0.80) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1753
• Structural adjustment programs exported expansionary austerity to the developing world with poor results #qualifies (0.75) — Mark Blyth, Austerity, 439