LATIN AMERICA

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LATIN AMERICA
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Latin America Urbanization and Economic
Development
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• HIGHLY URBANIZED compared to other developing
  regions
• Urbanization occurred during period of RAPID
  POPULATION GROWTH
• Urbanization fueled by RURAL-TO-URBAN MIGRATION
• Led to the growth of

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MEGACITIES

• Urban areas with more than 10 million people

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Urban primacy

• A PRIMATE CITY is disproportionately large and
  dominates the economic, political, and cultural
  life of a country
• Examples Mexico City, Buenos Aires, Lima,
  Guatemala City

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• Latin American cities are not able to provide
  enough formal housing or jobs
• The INFORMAL SECTOR is important for economic
  survival and shelter

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Informal Economic Sector

• Unregulated and untaxed, usually low wage
  occupations
• (examples street vendors, artisans, illegal
  occupations drugs, prostitution)

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Informal Housing

• Often called SQUATTER SETTLEMENTS
• People occupy housing on unclaimed land to which
  they have no legal rights
• Most squatter settlements have inadequate
  services
• Most squatter settlement residents are poor

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Latin American City Model

• Strong central business district
• Elite residential sector surrounding commercial
  spine extends in one direction
• Incomes decline away from the CBD
• Squatter settlements on edges of city and in
  disamenity zones

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GENERALIZED VIEW OF LATIN AMERICAN ECONOMIES
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Up to mid 20th century

• During colonial period (up to 1820s and 1830s)
  and after independence
• Export dependency, i.e. a reliance on export of
  agricultural goods and minerals coffee, sugar,
  tin, silver, etc.
• Resource-based economies
• Countries vulnerable to fluctuations in
  international markets

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1950s - 1970s

• Industrialization viewed as important economic
  development strategy
• IMPORT SUBSTITUTION focusses on domestic
  production of manufactured goods, state owns or
  subsidizes key industries, high tariffs on
  imported goods
• Helped to fuel growth of primate cities

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1980s present

• Adoption of NEO-LIBERAL economic policies
  stress privatization, foreign investors,
  production for export, few restrictions on
  imports
• Growth of MAQUILADORA program in northern Mexico
• Mexico joins NAFTA in 1993

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