GLOBALISATION AND SOCIAL EQUITY IN LATIN AMERICA Lessons Learnt and Challenges.

ROSALIA CORTES; GABRIEL KESSLER

Conferencia; Fourth Annual Global Development Conference "Globalization and Equity"; 2003

The expansion of international flows of technology, capital, manpower, cultural assets and even communications and lifestyle patterns – economic globalisation - has affected many aspects of society. However, the evaluation of the extent and nature of the equity impact of globalisation on Latin American society, culture and politics is not a simple task, as it requires empirical research and methodological tools that are not yet developed. The ongoing debate on the equity impact of confronts opponents and supporters of the consequences of globalisation. Some opponents argue that it eroded developing countries political autonomy, and weakened their capacity to manage macroeconomic variables (Ohmae, 1991) ; others posit that the concentration of both business and political power in a few cities of the centre deepened the gap between rich and poor areas (Sassen, 1991). In Latin America, supporters of the Washington Consensus have recurrently identified globalisation with "modernisation", and argued in favour of integration with the world economy and against protectionism. They claimed that economic liberalisation strategies would guarantee growth, while the reform of the social sectors would improve social equity. This paper discusses the social consequences of economic liberalisation and social reform strategies, that accompanied globalisation in Latin America. The first section describes the recommendations of international financial institutions, that identified international integration with economic and cultural modernization, and increase in state efficiency with social equity. We illustrate this analysis with empirical evidence on equity in Latin America. The second section analyses the role of globalisation in the fields of governance, culture and urban problems. Finally, we identify the research areas that need to be developed to obtain an accurate evaluation of the social impact of globalisation.