Economic Globalization, Neoliberalism and Foreign Direct Investment in Latin America

ESTEBAN SERRANI

Moscú

Conferencia; G20 Civil Summit.; 2013

Gobierno de la Federación de Rusia

In the aftermath of the Second World War, a new international financial architecture emerged as a result of the agreements reached in Bretton Woods. Conceived to regulate post-war capitalistic economic relations, this architecture was underpinned by the rising institutions the IMF and the Bank for Reconstruction and Development (later the World Bank), by a tariff agreement designed to regulate international trade, and by a group of regional financial institutions that would give momentum to national development activities. However, as it was natural in the global recession of the 1970s, this financial architecture faced deep economic, technological and ideological transformations as a result of the fall of structuralist development economics and the rise of neoliberalism. Against the backdrop of the prevailing general stagflation, the boom of easy access to foreign currency in international markets and the scientific and technological changes brought about by the replacement of the old Fordist industrial system by cybernetics and information technology led to a rapid deregulation of the international financial system. A period characterized by State intervention as the engine of development came to an end and a free trade-driven economic vision emerged with a special focus on trade liberalization and financial deregulation.