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The intention of this paper is to compare the theoretical framework of stabilization programs that Latin America has experienced during the last twenty years so to consider which one fits reality. Also, orthodox and heterodox adjustments implemented in South America are analyzed. From the experience of Argentina and Brazil, the conclusion is that, in order to reach long term, with a heterodox adjustment, it is necessary to consider the temporary character of price freezing and the adoption of administered prices, once inflationary inertia has diminished and the coordination of agent's expectations has taken place. [ABSTRACT FROM AUTHOR]

In the 1960's, various Latin American countries began to implement an external sector development strategy by utilizing policies that would increase their amount of exported goods. The success that is encountered with such policies is dependent upon several key factors and instruments, including financial, import, and commercial policies. The goal of the paper is to review the success that varying countries, such as Argentina, Brazil, Colombia, and Mexico, after the policy has been implemented.