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Despite the emergence of a rich literature on the rise of China in Latin America (LAC) since 2000, we are still grappling with this phenomenon. In this article we seek to theorize this expanding South-South relationship from two vantage points. First, from the perspective of China, we argue that, by necessity, the PRC has had to internationalize its development strategy in order to compensate for its serious natural resource deficit, feed the world's largest domestic population, and fuel the soon-to-be largest economy in the world. LAC has been just one slice of China's ‘go out’ strategy. Our second perspective probes the effect of China's entry into the region. Through the lens of development economics, we identify three separate political economy scenarios that have been accentuated within those countries that have the strongest economic ties with China. We rely on measures of institutional performance and macro-economic trends to illustrate the variable effects of China on LAC. [ABSTRACT FROM AUTHOR]

BEARISH IN BUENOS AIRES Several years ago, during the heyday of Argentina's market restructuring, a prominent local economist was interviewed about the country's long-term prospects. Despite a backdrop of rapidly [...]

This paper assesses the Argentine stabilization and market reform strategies since 1989. We argue that Argentina may be penned in by its own success: exchange rate targeting quelled inflation but the resulting real appreciation has limited export and employment growth; microeconomic reforms raised efficiency but have threatened income distribution and hence political stability; exclusive styles of policy-making helped enact reform but have led to corruption and policy insensitivity and contributed to rising social discontent. We close by suggesting how a 'second generation' of reforms could tackle these issues and spread the proceeds of reform to a wider segment of the Argentine public.

The three most prominent trends in South America in the 2000s have been: 1) the rapid expansion of trade and borrowing ties with China; 2) the collapse of both regional and multilateral trade negotiating venues since 2006; and, 3) the quick recovery of most South American countries from the 2008-10 global financial crisis. This paper analyzes the ways in which these three trends have converged and shaped the choice of development strategy in Chile and Peru, which have the strongest trade ties with China in the entire Latin American region when measured as a percent of GDP. Indeed, both countries have sought to stake out their own paths by negotiating separate bilateral free trade agreements (FTAs) with China and the US. Yet, although making these respective policy choices may well represent the most viable way forward for small emerging market countries which have consolidated macroeconomic reforms and are prepared to take their economic strategy to the next level, the political implications of this development path have already become more complicated than expected. [ABSTRACT FROM AUTHOR]