The Underdevelopment Policy of the United Nations in Latin America
Frank, Andre Gunder
It is generally believed that our continent receives real financial aid. The data show the opposite. We can affirm that Latin America is making a contribution to financing the development of the...
...Persons or families, like businesses .. . have a surplus of income over current expenses...
...21 My estimate from 659 - Add...
...Integracion Economica e Imperialisino, Mexico, Editorial Nuestro Tiempo, 1968...
...The high apparent productivity of the big commercial sector which, measured by the high income it receives, is due to the very high profits concentrated in part of this sector...
...Colonization agencies in Chile and Guatemala have deliberately formed subfamily scale units, whose operators are forced to look for part-time work on the large scale units...
...7 6 Support for land reform will not come from the industrialists who are often thought to want the same to expand markets for their products...
...In the case of the agreements about industrial complementarity, of the 153 projects that have been presented, only five have been put into practice...
...77 Johnson., 76...
...a) since the advantages of Article 34/18 are offered to foreign firms, the Brazilian] Treasury and the [government] Bank of the Northeast end up financing approximately 75% of these firms' investment in the Northeast, be it in their own installations or in capital shares, all of which over time will result in an outflow of capital which is disproportionate to the investment that was made...
...71 p. 32...
...It is important to remember here . .. what the degree of support is that certain groups receive from abroad, a factor which always played a role and which becomes more important as a result of the increase of external dependence...
...69 DI/217...
...El Desarrollo Industrial de America Latina...
...That this third development strategy is nonexistent is shown by ECLA's own above-cited past employment trends and projections and by the future projections currently being calculated by the International Labor Organization...
...Our potential capital declines...
...62 p. 110...
...Therefore, foreign and national private enterprise is attracted not only to channel Latin American savings into the production of these luxury consumer goods for an infinitesimal part of the population, but also to build a capital goods and equipment industry that is geared to support this durable consumer goods industry instead of being designed to be an engine of economic development...
...funds invested in Latin America was 10% and by 1964 it had fallen to 1% again...
...Is it that profits on fixed and working capital is so high in Latin America...
...Experience in the study countries indicates the land and inheritance taxes have the same weakness as regulation of tenancy contracts and minimum wages...
...countries which now have real production...
...In Latin America the inevitable and logical consequence is increasing polarization between itself and the metropolis, reflected in the growing inequality of the income distribution and increasing absolute poverty for the majority of people...
...in Latin America...
...81 Jimenez...
...The effects of the laws in-some cases have been negative . .. regulation of tenancy contracts is one of the major reasons why thousands of small tenants were evicted by landlords who sought to circumvent the laws...
...7 7 Therefore, this second ECLA "development strategy" is not available either...
...industry in Ecuador at 50% capacity...
...70 p. 26...
...The distribution of income in Latin America is very much more unequal than in the capitalist developed countries, to say nothing of the socialist countries...
...As a result...
...families, many from the urban middle class, received family scale units in colonization zones...
...Let us examine the feasibility of this "development strategy" in the light of the foregoing and other ECLA analyses itself and of one document issued by the Organization of American States in Washington, D.C...
...All these elements continue to operate as a function of the already existing internal productive apparatus...
...to acquire totally or partially already operating industrial enterprises in Latin America...
...6 9 We must therefore conclude that "mobilization of domestic resources" is no "development strategy" at all but simply a pious and totally unrealistic expression of faith...
...For, although the United States opposed this strategy as late as 1960, its multinational corporations began to realize the benefits to be derived for themselves from Latin American integration if they are the principal international producers and traders in Latin America...
...it is the tax credits of Article 34/18...
...Published by the Panamerican Union -K-General Secretariat of the Crganization of American States, Washington, D.C...
...42 825-1/65-66...
...These United Nations organizations, as we saw earlier, estimate present equivalent unemployment to be one-fourth of the Latin American labor force...
...Mexico...
...We can affirm that Latin America is making a contribution to financing the development of the United States and of other industrialized countries...
...Let us return, therefore, to the comparatively less somber past and present...
...1 2 For the forseeable future, ECLA feels that "the prospects of growth of exports of primary products are frankly discouraging for the developing countries" 1 3 and "the projections of FAO [the United Nations Food and Agriculture Organization] lead to even more pessimistic conclusions...
...5 8 As for the middle classes, whom Anglo-Saxons like to regard as the social engine of development but whose increased income, as we saw, is taken out of the hides of the poor, ECLA observes in the same document: The middle classes, when they rose, did so allying themselves with the oligarchy 5 9 . . . One of the major paradoxes of Latin American social history is that the middle classes...
...7) Latin American regional integration...
...This is shown by their consistent political opposition to land reform...
...54 DI/262...
...they were welcome, but not beyond that point...
...ZServicios Extranjeros o Desarrollo Nacional...
...The other support comes from the fact that it is this same underdevelopment developing productive process which generates the high incomes of the Latin American bourgeoisie...
...22 830/12 and 831/9...
...were only able to talk the language of a universalist ideology while...
...In the same year in Latin America (1961), total sources of investment funds were $1.781 billion, funds supplied from the United States were $110 million or 6% of total funds, and funds acquired abroad from sources outside the U.S...
...In the first place, ECLA has shown us that in recent years income inequality has not declined but rather increased, and the capital flow abroad has also increased and is projected by ECLA to continue to increase...
...2 3 Let us examine some of the causes and consequences of which the decline in the industrial growth rate is only the superficial manifestation...
...7 5 The experience in the CIDA study countries forces the conclusion that farm wage and tenancy legislation, when not vigorously supported by campesino [peasant] federations and by the government, cannot improve the agrarian situation...
...The benefits of invested capital grow and multiply themselves enormously, though not in our countries but abroad...
...But "the apparent decline in 1963 may be exaggerated" says ECLA because of the peculiarities of Mexican income reporting procedures which result in underreporting of high incomes...
...40% of them or 100 million people, permanently lack the minimum income necessary for "minimum access to the possibilities offered by contemporary civilized life...
...This American export stimulating function is in fact one of the principal purposes and accomplishments of direct foreign investment...
...31 Prebisch...
...7 8 That is, the colonial capitalist mechanism functions as well domestically as internationally, and the regional policy in the national sphere is just as unrealistically illusory as the others...
...The list of corresponding documents and other sources is given under "References Cited...
...3 3 To compensate for the cost of underutilization of capacity, the increasingly foreign owned and (thanks to the Latin American governments) high tariff or quota protected monopoly industry in Latin America overcharges the Latin American consumer: thus in 1965-66, chemical industry prices were 50% to 300% higher than list (not discount) prices in the U.S...
...Latin America cannot say what kind of equipment shall be installed...
...Thus, ECLA has succeeded in developing the elements of an incisive analysis of the symptoms for Latin American underdevelopment...
...1 836/5...
...hut also ill tihe access to designs and to the engineering th Iat acl coimplan ies the production of tile salli...
...The total Latin American market for passenger vehicles-estimated in little more than 300.000 units annuall-- has to be divided among nearly 10 present and potential manufacturers...
...7 Frank, 1966, 1968...
...Overall it would appear to have less than 10 per cent of our productivity potential back home...
...7 I Tenure and Labor Regulation...
...52 827/46n...
...But regional income inequalities are growing like personal income inequality...
...Subdesarrollo") is available from Punto Final, Santiago, Chile...
...Yet industry employed 14% of the total labor force in the first of these years, 14% in 1950, 14% in 1960 and still 14% in 1969.35 This means that industrial growth has been unable to offer employment opportunities to a greater proportion of the labor force...
...Indeed almost all of the data are taken from the official reports prepared by the United Nations Economic Commission for Latin America (ECLA) for its April 1969 bi-annual conference in Lima, Peru to evaluate the first United Nations "development decade" and to launch the second...
...constantly ran up against the structural pressure and the degree of real support they can get for a nationlist type project is very low 6 1...
...45 836.35...
...invasion of the Dominican Republic in 1965 by sending troops and even a commander-in-chief from Latin American countries, and which had for a long time been known in Latin America as the United States Ministry of Colonies...
...Department of Commerce and ECLA itself have amply documented, it is precisely this foreign investment and aid or external assistance which has generated not only Latin America's contemporary colonial structure commercial and balance of payments crisis but also the underdevelopment-generating domestic economic and class structural aberrations reviewed in part above...
...51 DI/141...
...50 DI/l10...
...It has evidently not been realized, and at their 1968 Conference of Latin American Presidents, plus the President of the United States, land reform was moved way down on the official list of priorities, with the first place of honor officially occupied by Latin American economic integration...
...33827.;43-44 34 830/35...
...July 28...
...This process is doubly reinforced...
...After nearly a decade, the objectives of the Alliance for Progress have, according to ECLA, not been achieved...
...REFERENCES CITED CIDA-OAS...
...55 DI/176...
...III, No...
...and imported raw materials (no doubt often purchased by a Latin American subsidiary from its metropolitan head office) were 49% higher-before being passed on to the Latin American consumer...
...Johnson, Dale...
...Furthermore, "many of the conventional steps to improve the income distribution do not appreciably affect the urban-rural differences" 6 7 and "the redistribution of land is not a means to reduce the large concentration of income at the top of the scale, which characterizes the region" 6 8 because "even a radical redistribution of the land, which would eliminate all of the really high incomes in the agricultural sector, would only reduce the participation of the highest 5% in the total income distribution [which, as we may recall, receive 33% of national income in Latin America] by some three percentage points [that is, to 30...
...That made the investment that really came from the United States between 1960 and 1964 a five year average of 4% of total so-called "U.S...
...Copyrights( 1969 by the North American Con ress on Latin America Inc...
...The machinery there was also newly built-not to produce...
...79 IlCI.A 1966...
...Naturally, this is demonstrated by the data about Mexico, where after a vast land redistribution program the structure of the distribution of income remains similar to that of other countries of the region...
...Witness the expert testimony of Leo Fenster, a United Automobile Workers union official for 26 years, who was the guest of the General Motors management at the opening ceremonies of its new automobile plant in Toluca, Mexico: I had made a careful tour of the plant...
...Therefore, the income of big business owners rose at an unproportionately high rate, while wage earners lost proportionately and the increasing number of un- or underemployed non-wage earners undoubtedly also lost income absolutely...
...13 816/22...
...3 0 Some of the consequences are summarized by Raul Prebisch, the former Director of ECLA: What happened in the automobile industry was revealing...
...79 The well known official of the Centro de Estudios Monetarios (CEMLA of the Latin American Central Banks),8 Miguel S. Wionczek, judges "the process of industrialization in large part fictitious in the Central American Republics...
...Their] developmentist leaders...
...are becoming less and less viable 7 4 . . . Any serious reform necessarily includes privately owned lands in densely populated and highly productive agricultural areas...
...3 4 Since, as Mr...
...56 DI/174...
...circumstances] obliged them to be strictly particularist in their real behavior...
...as a socially and economically democratic process...
...1969...
...Therefore, virtually the entire output of the vastly expanded and mostly foreign-owned productive apparatus for the fabrication of automobiles, refrigerators, vacuum-cleaners etc...
...The recent growth of the Latin American middle classes has been widely heralded...
...827...
...firms, and the remainder were from foreign earnings and depreciation charges...
...and b) permitting the installation in the Northeast of factories and subsidiaries, 7 which are entirely owned by firms from the Center-South, will probably reinforce one of the factors which historically explains the relative backwardness of the Northeast, that is, the export of capital toward the Center-South...
...large landowners cannot be paid in cash at pre-reform prices...
...After the beginning of the Alliance for Progress in 1961, the foreign share fell to 7.4% during 1960-64 and then to 4.3% for 1965-66.2 Leaving aside reinvestment and examining only international capital flows, ECLA notes that the outflow of financial capital rose from 18.4% of Latin America's total export *The Spanish version of this article ("CEPAL: Politica del was published as a supplement to their October 14, 1969 issue...
...I)onner of generall Motors...
...Movilizacion de Recursos Internos...
...Gabriel Valdes, Foreign Minister of Chile, 1969...
...c The NACLA NEWSLETTER is published ten times a year by the North American Congress on Latin America...
...6 Yet even these figures do .not include royalty and administrative payments to foreign enterprises, which account for an unknown part of the additional 6% of total foreign exchange that Latin America pays for "other services" plus another 10% for transportation and 6% for travel, which brings all payments to foreigners for immaterial services (as distinct from material goods) to about 65% of Latin America's earnings of foreign exchange or about 8% of its Gross National Product...
...Mexican Auto Swindle," The Nation (New York) June 2, 1969...
...57 p. 826...
...ECLA itself has negative evaluations of the prospects for land reform, but many of them are taken from a study issued by the Organization of American States (the same organization which sanctified the U.S...
...For this reason, also, ECLA has to observe, as we noted earlier, that the whole industrial sector is no longer a dynamic leading factor in the Latin American economy...
...The salient fact is that the presses in Buenos Aires, like the machines in Toluca, were not antiquated, broken down wrecks...
...government policy toward Latin American integration began to be increasingly favorable until in 1967 President Lyndon Johnson himself flew to Punta del Este...
...to Latin America-$3.8 billion...
...The major part of the answer is supplied by corporation directors in personal testimony and by the Department of Commerce in numbers...
...Worse, because it was deliberately archaic, with the obsolescence carefully built in...
...107 and 105...
...680/Rev.1...
...44 836/34-35...
...Chilean industry in 1957 worked at 57% capacity...
...9 Donner...
...The closer the economic and political relations between the metropolis and its colonial satellite Latin American bourgeoisie are, the more do the economic and political policies of the latter intensify the development of under development...
...Furthermore, even if export expansion were again to become possible, all of Latin American colonial capitalist history has shown that far from guaranteeing development, it develops undevelopment...
...6) External financial assistance...
...Estimated for 1965, the poorest 20% receive only 3% of all income or an average of U.S...
...4 3 , 4 7 . 76 p. 37...
...But the particularist and particular interests of the bourgeoisie and its ideological and political representation through the inter-governmental ECLA, of course, prohibit ECLA from developing an equally incisive analysis of the causes of nderdevelopment and of a strategy that is really able to overcome it...
...75 pp...
...The total vanity of this hope and of any bourgeois and middle class development strategy is evidenced by the strategy of ECLA itself, with which we may conclude...
...100 per year (or in El Salvador and Brazil U.S...
...4 8 Therefore, the richest 20% saw their share of income reduced at most by 1...
...FOOTNOTES The majority of the footnotes below refer to an ECLA document number...
...Latin America's most important development effort occurred during the capitalist world depression of the 1930's, when Latin American exports dropped to virtually nothing...
...He lent his full support to this integration and suggested that it replace land and other reforms previously proposed by the Alliance for Progress...
...4 2 Of this enormous unemployment equivalent, the totally unemployed account for less than half and the underemployed for more than two-thirds of the total...
...In the Western Hemisphere, only Cuba has so far eliminated unemployment, and now has a labor shortage instead...
...from improving, have seriously deteriorated...
...That war had accelerated the exhaustion of the temporary development process in the major Latin American countries which, between the onset of the5 Depression and the Korean War, which had been accompanied by a relative equalization of the distribution of income...
...the paper and cellulose industry used 68-71% of its capacity...
...836...
...Thus each tortured inch of Latin American industrial advance is actually a giant step backward...
...For lack of industrial employment, this relative exodus from agriculture had to be absorbed in the construction and service sectors, which increased their share of employment from 26% in 1925 slowly to 31% in 1950 and then explosively to 43% in 1969.38 Graver still is the fact that 10 of this 12 point increase in the past 20 years was absorbed by commercial and financial, other service, and not-specified-activities sectors, the last two of which alone account for 23% of the labor force in 1969...
...our overseas subsidiaries remitted about two-thirds of their earnings to the United States...
...2 8 IThs result i not onlly the illcreasted export capacity noted h! .\lr...
...Toward a Dynamic Development Policy of Latin America (Prebisch...
...64 836/42, nglish edition...
...UNEQUAL DISTRIBUTION OF INCOME The distribution of income and other socio-cultural characteristics should not be confused, as it is often by Anglo-Saxon social science, with the class structure...
...And between 1955 and 1965 in Brazil, while productivity per worker rose 5.2% per year, real wages rose only 1.3% per year...
...So this is no development strategy either...
...Fenster, Leo...
...Any realistic estimate of the commercial deficit facing Latin America in the very near future, thus, is so frightening that no one seems to be willing to attempt it...
...It is clear that the pharmaceutical chemical or eletrical industries i Latin America are in their large majority formed by foreign capital...
...60 p. 85...
...El Cambio Social y la Politica de Desarrollo Social en9 America Latina...
...4 0 ECLA comments, "the complex of these data reflects the increasing difficulties of the economic system of many Latin American countries to absorb the supply of labor sufficiently and productively...
...The levels of income of the population have not risen and neither have the levels of production...
...Integracion de America Latinas, Mexico, Fondo de Cultura Economica, 1964...
...national income or to-thirds the share of Latin Americans...
...Like the middle classes, from which it recruits its technocrats, ECLA "can only speak the language of a universalist ideology" while it is obliged "to be strictly particularist in its real behavior" when it formulates its real policy, which in practice supports the political status quo...
...8, December 1969 Published monthly, except May-June and July-August when it is published bi-monthly, at 160 Claremont Avenue, New York, N.Y...
...Magdoff, Harry...
...Assuming a roughly similar base for the two kinds of percentage calculations and adding the payments to foreign capital as estimated by ECLA raises the projected virtual deficit to between 33% and 36% by 1975 and 44% to 48% by 1980, but only if we exclude all but the profits and interest ECLA estimates here.l 6 But if we add the amortization payments on the present debt level, on the basis of which the current 36% capital payment is calculated, and even if we forget about the almost certain increases of the amortization payments as the debt level increases and take no account of the roughly 10% additional other capital flows mentioned earlier, the virtual deficit already rises to over 50% by 1975 and over 60% by 1968...
...35 830/5 ,nd 831,79-80 36 827145...
...Beyond the alternative of revolution, of those that have been reviewed here and some others that might be imagined, there only remains the status quo and the hope that its slow transformation might favor development...
...FAO...
...Thus, in a vicious circle or rather, in a vicious underdevelopment spiral, this distribution of income does not stimulate savings 5 3 -although, as we saw above, even the savings of this sector are too high to be absorbed-but rather stimulates consumption of luxury consumer durables, housing, and trips abroad...
...As mn so many other things, the evaluative analysis of ECLA is more appropriate than its "development strategy...
...6 6 Yet the reduction of this "primitive" low productivity and underemployment sector is precisely one of the not even achievable development objectives elsewhere in Latin America...
...2 4 But lack of savings does not seem to be the problem...
...The Economic Development of Latin America in the Post-War Period...
...2 6 827/123ff...
...This laboriously constructed estimate is that the equivalent of 25 million people or one-fourth of the active population of Latin America is unemployed...
...Nor does this seem known to anyone else with authority, inclination, opportunity or courage to speak out...
...696/Rev.1...
...Like several times before in the history of world capitalist development, the recovery of the metropolis from depression and war crisis blew an ill wind for Latin American development...
...4 5 This is clearly impossible with the present unequal distribution of income (which grows more inequitable in its distribution rather than less...
...Chile and Venezuela-which support assembly plants and are about to begin production...
...Large units are protected by corporate status and liberal tax laws while small farmers lack [protection...
...154 and 204 a day...
...from Latin America to the U.S.-$11.3 billion, leaving a net flow, which, as Foreign Minister Valdes noted, is from poor Latin America to rich North America, of $7.5 billion...
...20 AO 1964/16...
...The poorest 50%, or half the population, receive 13% of the income or an average of about U.S...
...Colonization...
...Recent Chilean studies indicate a record of compliance with social laws of only 10-20...
...1966...
...3) Employment policy...
...5 6 But while at one time this highly profitable entrepreneurial activity had to be channeled primarily into production for export and the sale of imported finished goods, it is now possible to earn similar profits in the major countries of Latin America by producing those finished goods at home-as long as this is done with imported equipment and technology, in partnership with foreign monopolies, and for the consumption only of the bourgeoisie itself and a part of the upper middle classes...
...But in 1962 it fell to -1%, that is, none was brought from the United States at all and even in the grossest of gross ways some was taken out...
...68 DI/222...
...In Guatemala...
...It seems reasonable to suppose that an indeterminate but strategically very important part of the surplus of the industriall sector deviates from the goal of fixed capital formation and is channeled toward the current finance of operations and even to the previously mentioned finance of consumer durables...
...Direct Foreign Investment" in a table on "Sources and Uses of Funds of Direct Investment Enterprises by Area and Selected Industry 1959-61:" In 1961, the total sources of foreign investment funds in all areas of the world were $8.217 billion of which $1.249 billion or 15% were "funds from the United States," $1.391 billion or about 16% were "funds obtained abroad" from other than U.S...
...Adding the commercial and financial sector, which includes the small traders, the last three categories alone include 11.4 million people and 45% of the unemployed or nearly 14% of the total population of working age...
...8 0 It is not surprising, therefore, that in his Integracion Economica e Imperialismo another expert comes to the following conclusions: The results of the Central American Common Market are practically zero in the first five years of its operation...
...30 1 nstcr...
...The more "external assistance" from the imperialist metropolis, the more underdevelopment for Latin America...
...FOREIGN ECONOMIC RELATIONS Let us examine some aspects of the foreign economic relations first...
...Another tendency is the tendency of foreign capital, which has been notoriously accentuated in recent years...
...The publication [Sucesos, which had published an article calculating that all this cost Mexico $180,000,000 in 1966 and will have drained Mexico of at least one billion dollars by the end of the decade] was unaware of the fact that Mexico's plants are deliberately equipped with low-production machinery...
...10 Suney of Current Business, Sept...
...This oral statement by Gabriel Valdes, the Foreign Minister of Chile, to Richard Nixon, the President of the United States, was made in the Cabinet Room of the White House on June 12, 1969...
...to assure themselves a reasonable-that is moderate-place in the distribution of power...
...8 2 Clearly, "Latin American" economic integration is a good business proposition for the imperialist monopoly corporations and a convenient political attempt by the Latin American governments to export their domestic problems by expanding the foreign instead of the domestic market...
...14 816/26...
...The evidence appears clear that programs of indirect tenure reform have not succeeded either in changing the traditional agrarian structure or in mitigating the attendant social conflicts and disequilibrium...
...separated from the page number(s) by a slash...
...Venezuelan industry in 1961 at less than 50% capacity...
...49 Dl/107...
...So let us get our information straight from the horse's mouth (the OAS's Interamerican Committee of Agricultural Development-CIDA-report, "Spontaneous Response and Adjustment"): Subdivision by Inheritance...
...Land Tenure and Socioeconoric Development of the Agricultural Sector in Seven Latin American Countries...
...78 827/111-112...
...hut the rising a;nd increasingly inflexiile ilumport retqulireenlllls andt c(onseqllluelit 3 external vulnerability of Latin America, which are reflected in the increase of the import of raw materials and intermediate goods as a percentage of total imports from 40% to 49% between 1950 and 1965.29 This foreign dependence also has negative effects on the domestic industrial and economic structure in Latin America, because it leaves the choice of the product and the materials, equipment and technology to be used increasingly to foreign discretion, which is not exercised in terms of the development needs of Latin America but rather in terms of the growth and profit desires of foreign multi-national monopolies, such as Mr...
...That is, virtually all of the registered flow of "funds" to Latin America really represents the generally overpriced export of supplies and often obsolete, or for tax purposes depreciated equipment from the home office to the Latin American subsidiary...
...Department of Commerce...
...Iet us therefore examine some of the submerged aspects of contemporary neo-imperialist capitalist development, neo-colonial relations, and Latin American socio-economic structure and political policy...
...Johnson's suggestion and wrote Latin American economic integration into the number one priority place on their list of common proposals...
...ECLA STRATEGY The United Nations Economic Commission for Latin America, which provided almost all of the data, projections and sources of the above analysis, in its basic April 1969 document "Second United Nations Development Decade, Basic Aspects of Latin American Development Strategy," 6 3 can do no more than offer the following solution: "To sum up, development strategy comprises four basic instruments of a general character: (1)mobilization of domestic resources...
...This implies expropriation of private lands now held in large units...
...Donner and the U.S...
...Nixon in Washington...
...ECLA already informed us that the prospects are "frankly discouraging...
...Prebisch, Raul...
...By 1963, the share of all U.S...
...Algunos Aspectos de la Economia Latinoamericana Hacia Fines de la Decada de 1960 (Primera Parte...
...5 Projecting this international commercial trend into the future, ECLA estimates "a virtual commercial deficit" of 14% to 17% by 1975 and of 19% to 23% by 1980, without counting the payments to foreign capital which ECLA estimates as 19% for 1975 and 25% for 1980 (although as we saw earlier, ECLA (under)estimated these payments had already risen to 36% of total foreign exchange earnings by 1966 and are still rising...
...This last supposed development strategy is notable already for its relative position-i.e., in last place...
...3 9 In other words, the literally unproductive service sectors absorbed 30% of the growth in the labor force from 1925 to 1950, 40% of the growth in the 1950's, and nearly half of the growth of the labor force since 1960, and of these more than half again went into the other service and unspecified activities...
...108-109...
...In order to eliminate this unemployment by absorbing both the natural growth in the labor force and the already existing unemployed, employment would have to increase at the rate of 5.5% each year, which would require a growth rate of Gross Domestic Product of 8% a year...
...Latin America's most famous and ambitious regional development program, Celso Furtado's SUDENE in the Northeast of Brazil, has already failed...
...Thus, just as throughout history since the Conquest, the colonial structure of the world capitalist system forms the economic and class structure in Latin America...
...65 680 Rev...
...In another one of the same series of documents, entitled "Social Change and the Policy of Social Development in Latin America," 5 7 ECLA observes: In general it may be presumed that foreign support will tend to reinforce those groups whose sources of power are the most strategic ones, but it should not be forgotten that the external pressure is autonomous and can make certain activities strategic by its mere support...
...8 1 As far as "Latin American" integration is concerned, the same writer points out that The products includedin the liberation program of LAFTA until this year amount to 9,400, of which the ones that principally have been the object of the 1966 negotiations are pharmaceutical chemicals, machinery and electric appliances and material...
...By comparison, Latin America spends about 3.5% of GNP on education...
...59 p. 82...
...To do so we shall rely almost exclusively on the most authoritative and unimpeachable data and analyses of the United States Department of Commerce and of the United Nations...
...It derives its authority not only from those present there (which included all the Latin American Ambassadors in Washington), but from the fact that Mr...
...7 The United States Department of Commerce computes the total flows of capital on private investment account between 1950 and 1965: from the U.S...
...The present growth rate is achieved with a level of a gross investment of 16-17% of GDP which has remained at this level for many years now...
...6 4 (Numbers in parantheses are mine for easy reference below...
...23 830/11...
...60 per year (in 1960 prices...
...61 p. 87...
...This was near the top of the priority list when the Alliance for Progress was launched at the Punta del Esta Conference of 1961...
...For now the metropolis is no longer interested in exporting the finished goods themselves, since the metropolitan bourgeoisie can now achieve greater economic control and earnings at home and abroad in the world capitalist economy by exporting the producer equipment and technology which, along with financial control, is its new source of monopoly power...
...1 Mobilization of domestic resources: Raul Prebisch, the then Secretary General of ECLA and later Secretary General of UNCTAD until he resigned because of its failure after the 1964 Geneva and 1968 New Delhi Conferences, already wrote in 1963: In fact, if consumption by the upper strata were brought down to no more than eleven times that of the lower strata, the annual per capita income growth rate could be raised from 1% to 3%, and if it were only nine times as great, the annual per capita rate could rise to 4...
...Department of Commerce supplies the global picture under the title "Financing U.S...
...Fredric G. Donner, Chairman of the Board of the General Motors Corporation informs: Let me summarize our overseas record during the past fifteen years in terms of some objective measures of business accomplishment...
...May 1966...
...firms were $186 million, or more than half again as much as those brought from the United States, and the rest were as usual foreign earnings and depreciation charges, many of which are frequently bookkeeping manipulations to hide real profits as supposed costs.I O This was in 1961...
...7 0 Agrarian Reform Policies...
...19 831,6...
...Comite Interamericano de Desarrollo Agricola...
...5 I Let us examine some of the implications of this distribution of income...
...5 4 High income in Latin America is not derived from simple rental income from property but i entrepreneurial income, 5 5 and the higher the proportion of national income derived through profits, the greater is the inequality of income...
...is destined for 5% of the population of Latin America...
...Besides, UNCTAD, which was formed by the 77 underdeveloped countries under the direction of the former Secretary General of ECLA precisely to press for bigger and better terms for these exports, has already failed, and, as observed above, Mr...
...This is because the causes are in the capitalist system and its bourgeoisie itself, and the only remedy against the cause as well as the symptoms of underdevelopment is the revolutionary destriction of bourgeois capitalism and its replacement by socialist development...
...In the...
...15 816/65...
...28 830/26...
...If their global interests demand that a particular intermediate good be produced in Detroit, Europe, or Sao Paulo, as an integral part of a planned production process, then they will not produce it elsewhere in Latin America...
...When tax advantages or technological progress or competition in the United States or elsewhere demand the rapid depreciation of a particular type of capital equipment, they call it "obsolete" and ship it to their Latin American or other subsidiary, to whom they charge inflated prices for the depreciated equipment and astronomical administration and know-how costs for the technicians they send down to install it...
...This impressive disproportion in the consumption of the groups in question, and the income transferred abroad for investment and hoarding, implies ample savings potential which would permit a sharp increase in the rate of development provided other conditions were met at the same time...
...Latinoamerica: Subdesarrollo Capitalista o Revolucion Socialista" Pensamiento Critico (La Habana) No.13, 1968...
...37 825-1'55 38 825-1/54...
...1 Furthermore, as Mr...
...and Europe...
...17 p. 696...
...While the popular classes were useful as support...
...It is a matter of integration with imperialism, which consists of opening doors to massive investment of foreign capital, but not with the purpose of development, but of irrational, intensive and predatory exploitation...
...Indeed, while the metal mechanic industries increased their share of output from 14% to 25% between 1950 and 1960, their share or employment only rose from 18% to 21%.36 The trend is doubly alarming, because while the growth rate of total manufacturing employment declined from 2.6% annually in the 1950's to 2.3% annually since 1960, the corresponding decline was from 3.7% to 2.9% in factory employment, while the growth rate of artesan employment (4 persons or less per shop) increased from 1.5% to 1.6%.37 For the whole period, while industrial employment remained stagnant at 14%, employment in agriculture and mining declined from 60% of the labor force in 1925, to 55% in 1950 and 43% in 1969...
...Donner's General Motors...
...816...
...As ECLA itself pointed out in 1966: It must be recognized that the changes produced by the common market in the system as a whole are still small in each country, and that their economies are still structured along the traditional national lines...
...5) Export expansion...
...The pressure from large landowners often does not permit lawmakers to adopt or enforce really effective regulations...
...5 2 No wonder that this apparatus is highly inefficient and stands half idle...
...it is enough to mention that there are four other countries-Colombia...
...The Latin American Presidents present, with the exception of the President of Ecuador, duly rubber-stamped Mr...
...Minimum contribution for 1-yr...
...The share of industrial output in the Gross Internal Product of Latin America has risen from 11% in 1925 to 19% in 1950, 22% in 1960 and 23% in 1967...
...On these realities, it is not possible to base any solidarity or even any stable or positive cooperation...
...We may be certain that the problem of unemployment and all its social and political consequences will inevitably grow to still vaster proportions in the coming decade unless Latin America experiences a total change in colonial and class structure...
...and two-thirds of this increase is in intra-Latin American trade, most of which is carried on under the auspices of the Latin American Free Trade Association and the Central American Common Market by foreign, mostly North American, firms...
...73 p. 40...
...The alternatives...
...In this fashion, the average size of the properties is falling at the same time that the relative concentration of land is increasing...
...and they point out that without a 6.5% annual growth rate of GNP in the future-that is, a rate almost 50% higher than at present-unemployment will inevitably have to rise both absolutely and relatively, irrespective of any "employment policy...
...16 831/45...
...And most revealing is that these latter unspecified activities "which essentially are nothing more than unemployment or marginal services of lowest productivity" increased from 2.3% to 5.6% of the labor force during these two decades...
...Not surprisingly, U.S...
...2) agrarian reform, (3) employment policy, and (4) regional policy in the national sphere...
...2) Agrarian reform...
...A survey of Chilean industrialists found that only 17% declared themselves in favor of land reform through government expropriation of latifundia...
...6 2 But the majority of the people cannot afford to rely on this vain hope, while the colonial bourgeoisie and its middle class allies, strategically supported by the economic, political and military power and interests, further develop the underdevelopment of Latin America...
...One support comes from the neo-colonial economic determination of the Latin American industrial products, technology and processes in general by the imperialist metropolis, as was noted above...
...753-755...
...In the meantime, the value of imports rose at the rate of 3.8% annually and the abovementioned payments to foreign capital increased at an annual rate of 8.9...
...More realistic calculations would show even smaller effects...
...Agricultural production per capita has risen a mere 1/2% a year between 1950 and 196619 but, according to FAO, it had declined 7% from its 1934-38 average by 1963-64.20 Most interesting is the decline in the growth rate of manufacturing industrial output, which was about 7.2% a year over the period 1936-49,21 6.8% during the 1940's, 6.3% in the 1950's, and a 5.4% and still declining rate since 1960, so that its relation to the growth rate of Gross Internal Product also declined during the last three periods from 1.4, to 1.3, to 1.2.22 This means, according to ECLA, that "the industrial sector has ceased to be a dynamic factor in the Latin American economy [as it was during the Depression and War] and has become a sector which merely accompanies the others without transmitting an especially stimulating impulse to them...
...By the close of 1965, this investment had increased to about $1.1 billion, or approximately six times the amount in 1950...
...80 Wkionceck...
...I asked him [an engineer in the United States on his return home] about the Foote-Burt machinery I had seen in the Latin American plants...
...1/32...
...In addition to Argentina and Brazil...
...But let us examine where their growing share of the national income comes from...
...Frank, Andre Gunder 1966...
...These five industries, statistical machines, electronic valves, utilities, electronic apparatus and chemical products, are dominated by foreign capital...
...If the behavior,the unity or the disunity of the upper classes always depended on the occasion, this dependence appears truer today than ever before...
...6816/3...
...66 D/72...
...In Brazil, with nearly a third of the continent's population, the distribution of income is considerably more unequal than in Latin America in general and much more so than in Mexico, whose Revolution produced a relatively more egalitarian income distribution...
...58 p. 88, Spanish edition...
...Latin Americans] are completely subservient to the desires and preferences of the industrially advanced nations...
...CONCLUSION: ACCELERATED UNDERDEVELOPMENT Thus, we may conclude that ECLA demonstrates that during the "First United Nations Development Decade" Latin America has in fact suffered a process of accelerated underdevelopment, which promises to deepen still more in the immediate future...
...18 p. 825...
...50 This increasingly greater relative and absolute exploitation of the poorest members of Latin American society is the real source of the increasing relative income share of the middle classes...
...quoted in Jimcncz...
...The Age of Imperialism, New York, Monthly Review Press, 1969...
...4 9 In 1963, for these poorest Mexicans, not only their relative but also their "absolute income was appreciably lower than in 1950...
...Net external finance, as computed by ECLA, which includes reinvestment of earnings retained in Latin America, averaged 10.3% of gross investment in Latin America during 1955-59...
...it was a matter of getting support from the popular classes, for which certain concessions were necessary, but without going too far...
...while each of the principal European manufacturers brings 250.000 to 500.000 units on the market annually.3 I Other industries do the same until the capital-intensive and labor-saving eqtqipment for the production of goods that are often not Ihe most suitable ones for Latill A:merican de-elolpmellet results i the following: ill 1966 the Latin American steel4 industry had 48% more productive capacity than production...
...This expansion was accomplished almost entirely from financial resources generated through General Motors operations overseas and through local borrowings which could be repaid through local earnings...
...48 Dl/103n...
...29 831/28...
...One must insist in recognizing that the middle class governments gave the trade unions what these would not have been able to obtain alone, but it would not be proper to forget that the most violent repressions against those popular strata were let loose by those same middle class governments 6 0...
...T'lhis foreign dependence manifests itself 1not only ill production techniques...
...Private investment has meant and does mean for Latin America that the sums taken out of our continent are several times higher than those that are invested...
...1 In fact, both external economic relations and national economic, social and political conditions, far...
...Between 1950 and 1963 the richest 20% of Mexican income receivers reduced.their share of national income from 60% to 58.5...
...Food and Agricultural Organization of the United Nations, The State of Food and Agriculture 1964, Rome 1964...
...and ECLA demonstrates equally clearly that it lacks even the first elements of a development strategy for the "Second United Nations Development Decade" that could do anything other than to repeat the experience of the first...
...La Distribucion de Ingreso en America Latina, Abril 1969 (Documento provisional de la Division de Investigacion y Desarrollo Economico de la CEPAL, que constituye una revision actualizada del documento oficial, presentada a la XII Reunion en Caracas en 1967, entitulado "Estudios Sobre la Distribucion de Ingreso en America Latina" E/CN.12/770 y 770/add.1...
...Furthermore, on the domestic level, ECLA points out that "the concentration of income in the highest 5 per cent of income in Argentina shows that the elimination of the primitive sector will not necessarily significantly reduce the global inequality in the distribution of income...
...It should not be surprising, therefore, that the most traditional sectors of the upper classes are the ones that insist on fortifying the ideologies that defend the status quo...
...The regulatory approach nonetheless continues to be attractive because it permits the government to give the impression they are facing aarian issues while simultaneously avoiding direct reforms.7 Tax Reforms...
...Survey of Current Business (Washington, D.C...
...I/Table 20...
...Graver even than the drain of capital, however, is the effect of foreign aid and investment on the economic and class structure of Latin America...
...All this results in the fact that unemployment and underemployment, which appeared relatively weaker in former years, have at the very least become much more obtrusive in this decade...
...7 3 Direct Reform of Land Tenure Systems...
...Prebisch resigned and came back home to Latin America...
...Naciones Unidas, Comision Economica para America Latina (CEPAL), Nueva York-Santiago...
...What is more, it may be noted that it is the industrial sectors, which at the beginning of the period had the highest growth rate-that is, basic metals, mechanical and even chemical-that have had their development most notoriously restricted during the last decade...
...The most notable thing of the middle classes is...
...Therefore, 1% of the population of Latin America receives about one and one third (133%) as much income as the 50% or poorest half of all Latin Americans...
...2 831/15...
...Savings and gross investment as a percentage of Gross National Product have remained roughly stable at 16% or 17%, if calculated at tariff protected and super-monopolistic Latin-American prices and about 12% if calculated in dollar prices...
...Donner, Fredric G. The World-Wide Industrial Enterprise, New York, McGraw Hill, 1966...
...That is only a minor part of the answer...
...According to the calculations of ECLA in the Economic Survey of Latin America of 1963,17 1966, and 1968,18 the annual growth rate of national income per capita in Latin America has declined during each five year period since the war, from 4.8% in 1945-49, to 1.9% during 1950-55, to 1.4% for 1955-60, and 1.2% during 1960-66...
...4 4 To appreciate what this means, it is necessary to recall that during the 1960's the growth rate of the Gross Domestic Product (GDP) has been only 4.7% and that, since the end of World War II, the trend of this rate has been steadily downward...
...The fundamentals of the same mechanics still function in Latin America...
...In fact, just to absorb the natural increase in the labor force and to maintain the present level of 25% equivalent unemployment would require a 4% annual increase in employment, which means in turn a 6.5% rate of growth of Gross Domestic Product during the 1970's...
...40 827/51-52...
...53 DI/33...
...10027...
...It is interesting, therefore, that ECLA, which supported Latin American economic integration and especially the Central American Common Market long before the United States did, now places this supposed "development strategy" in the last place among all of the realistically nonexistent strategies it can think of...
...8 Magdoff, 1968...
...This unimpeachable summary of the economic colonial relationship between the metropolis of the imperialist system and its Latin American neo-colony, however, only illustrates the smallest visible part of the colonial iceberg...
...831...
...36-37...
...quoted in Jimenez, 65...
...and three instruments relating to the external sector: (5) export expansion-especially exports of manufactures-(6) external financial assistance, and (7) Latin American regional integration...
...which produce consumer durables that cannot be absorbed by the market unless thev are accompanied by even greater installment payment facilities than in the metropolis itself...
...Aspectos Basicos de la Estrategia del Desarrollo de America Latina...
...The year before, in 1960, the share of all funds invested by the United States in Latin America, which were actually brought from the United States, had been 5...
...3 831/37...
...On the contrary, the industrial "sector as a whole is probably in a surplus position with respect to its capacity to finance its real investment...
...Oh," he answered, "that is our special low-production machinery...
...U.S...
...The growth rate of Gross National Product declined from 5.1% during the 1950's to 4.6% a year between 1960 and 1966...
...Donner went on to point out about General Motors, "our experience shows that our investments overseas have improved our ability to export, sell and service our products made in the United States...
...24 831/10-11...
...paper industry prices were 14% to 240% and most frequently 60% higher...
...830...
...Here again analyses are very scarce, perhaps not because they would be so difficult to make but because they would be so alarming and politically inconvenient...
...4 3 So much for the present...
...Second-class postage paid at New York, N.Y.projections are based on the unrealistically optimistic assumption of an annual economic growth rate exceeding 6% for the future, while the real growth rate has been less than 5% and falling in the past...
...43 825-h1/62...
...4 7 What is more, the distribution of income is becoming increasingly more unequal as a result of the growing structural underemployment reviewed above...
...41 825-1:61...
...Just to achieve a 7% GDP growth rate, which would all but maintain the present level of unemployment (and, as ECLA noted above, would nonetheless dangerously increase the commercial gap), requires an immediate increase of gross investment of 20% to 23% or more of GDP...
...The distribution of income is the consequence of the class structure and policy, just as the latter is the consequence of the colonial structure...
...Los Deficit Virtuales de Comercio, y de Ahorro Interno, y la Desocupacion Estructural de America Latina...
...ECLA itself evaluates another Brazilian measure which is supposedly designed to stimulate development in the Northeast: There has been in operation in Brazil a mechanism which is intended to transfer business savings from the Central-South regions (Rio de Janeiro and Sao Paulo) to the Northeast...
...63 p. 836...
...In the meantime, the share of the poorest 50% declined from 18.1% to 15.4% or nearly three percentage points and of these the income of the still poorer lowest 20% of income receivers declined from 6.1% to 3.6% or by nearly half of their previous share of income...
...1 4 In view of the discriminatory tariffs of the developed countries, which UNCTAD unsuccessfully tried to lower, Latin American manufacturing exports have only risen from 3% of all exports in 1955-57 to 5% in 1964-66...
...A 1957 survey in Brazil showed that farm workers in seven of eight important states studied were receiving wages one-third or more below the fixed minimum wage, and were being overcharged for their housing by30-40...
...It was not a matter of assuming total power, nor of making the revolution necessary for that, nor to destroy the oligarchy...
...or rather they do so again since the recuperation of the mperialist metropolis, which occurred after the Korean War...
...The 'National' and 'Progressive' Bourgeoisie in Latin America" Studies in Comparative International Development, IV, 042,1969...
...Wionczek, Miguel S. "La Inversion Privada Norteamericana y el Desarrollo de Mesoamerica" Comercio Exterior (Mexico) Banco Nacional de Comercio Exterior, XVIII, 8, agosto de 1968...
...ECLA itself observes that economic integration will not help solve the problem of the distribution of income and the effective mobilization of domestic resources, which ECLA places in the number one priority on its list because its change, along with the associated distribution of political power, is the sine qua non of any real development strategy-which ECLA and the Latin American bourgeoisie, not to mention the imperialist metropolitan one, however much they may see or complain about the problems at home or in Washington, cannot possibly offer...
...To begin with, the half of the population that only receives 13% of the national income evidently can buy practically no durable consumer goods at all...
...3 2 in 1961-64 the food, metal and mechanical industries in Argentina worked at 50%o capacity...
...72 pp...
...106-107...
...RESULTING EMPLOYMENT STRUCTURE Let us then examine the resulting employment structure in Latin America...
...4 816/94...
...Estudio Economico de America Latina, 1968...
...In one word, we know that Latin America gives more than it receives...
...subscription: $5 In This Issue: The Underdevelopment Plicy of the United Nations in Latin America...1 INDEX to NACLA Newsletter............................................10earnings of foreign exchange in the period 1950-54 to 25.4% during 1955-59 and reached 36.1% in 1965-66.3 These capital outflows include only the profits, interest and amortization payments by Latin America that are directly attributable to foreign so-called aid and investment...
...investment in Latin America...
...tax purposes before they report it to the Department of Commerce and before the latter adds up the reports...
...Throughout Latin American history, the high income generating bourgeois property has not been concentrated only in agriculture-as is often erroneously believed-but also, and even more importantly, in the commercial and financial sectors...
...Department of Commerce observed, virtually all of the savings and capital invested in foreign owned enterprise is of Latin American origin, foreign technology and enterprise (it is difficult to call it foreign investment since there is hardly any of that) tie up Latin American capital in expensive industrial installations that are half unused and half-used to develop still deeper structural underdevelopment...
...income receivers are only temporarily that poor because of cyclical unemployment while the Latin American poor are permanently so because of structural un-, under-, or low-productivity employment...
...UP-G5/058 Rev...
...4 6 Furthermore, part of the poorest U.S...
...Comercio Exterior, Banco Nacional de Comercio Exterior de Mexico, XVI, 2, Feb...
...In view of these data, which during the 1960's have become still more unfavorable for Latin America, it is no wonder that the capital contribution of the imperialist metropolis is increasingly negative and the capital drain from Latin America greater and greater...
...Frank, Andre Gunder 1968...
...6 5 But what are these other conditions and can they be met...
...It was worse than archaic...
...4 But if to these capital outflows we add those registered in the balance of payments under the titles of donations, transfers, and errors and omission in capital flows, whose origin cannot be easily identified as foreign or national, the proportion of financial service payments by Latin America amounts to about 22% in 1950-54 and rises to about 42% by 1965-66,5 and reaches 50% for Brazil, Mexico, Chile and Colombia...
...9 The U.S...
...But it must be remembered that these laws are approved with the tacit agreement that they will not be vigorously enforced...
...Not only did several countries try to do the same...
...Estudio Economico de America Latina, 1963...
...Furthermore, all these NACLA NEWSLETTER Vol...
...Jimenez Lazcano, Mauro...
...it is therefore the next problem we must examine...
...At the same time the richest 20% of the population receive 63% of the national income and the richest 5% among these receive 33% or more than half of that income, and the richest 1% of the population receives more than half of that again or 17% of the national income...
...Nonetheless, as the class structure and class-determined policies reinforce the colonial structure, so does the distribution of income in turn reinforce the class structure...
...Therefore, this sixth "development strategy" of ECLA is no more than the parrot-like repetition of a litany whose content ECLA itself has already discarded...
...It is a matter, then, of economic integration with the foregoing monopolies...
...25 827/77...
...but there was a fantastic proliferation of anti-economic plants in one and the same country...
...The structure of the Central American national economies remains as it was before its establishment...
...82 .Jimenez...
...74 p. 41...
...47 827/56-57...
...quoted in Intercontincntal Press...
...The only thing that has been accomplished is to increase international trade by 15 per cent, but without reducing prices, to the benefit of only small groups...
...Valdes was speaking as the officially designated spokesman of all the Foreign Ministers of Latin America (except Cuba) who had recently met in Vina del Mar, Chile, and unanimously approved a declaration, which they asked their colleague Valdes to deliver personally to Mr...
...United Nations Economic Commission for Latin America (ECLA), New York-Santiago...
...67 DI/215...
...As Foreign Minister Valdes told Nixon and as the U.S...
...2 7 longg ith the establishment of new foreign enterprises, this increasingly accentualtes the financial and technological dependence of Latin American idustrv on the metropolitan monopolies...
...Although the abovementioned outflow of capital on financial and other service account creates a permanent and ever aggravating balance of payments crisis for Latin America, the continent so far has managed to maintain a trade surplus of exports over imports of goods...
...At the end of 1950, the value of General Motors net working capital and fixed assets overseas was about $180 million...
...Of this total, agriculture accounts for 11 million persons or 45% of the unemployment equivalent, and the aforementioned "other services" and "unspecified activities" absorb nearly 10 million or 39% of the unemployment equivalent...
...39 825-1/54-57...
...The available statistical information does not reveal the magnitude of the phenomenon...
...11 Surne' of Current Business, August or September numbers of each year following the years cited in the appropriate portion of the text of this paper...
...As we saw at the beginning of Spanish colonial times, the colonial economic and class structure determined great inequality in the distribution of income at home, which severely limited the domestic market, induced the Latin American bourgeoisie to invest and spend the surplus expropriated from the rural, mining and urban workers to strengthen the colonial ties with the metropolis and thereby to develop underdevelopment...
...27 830/47...
...8 We may ask how foreign firms achieve this excess profit, which incidentally they underestimate for U.S...
...it takes what is given...
...coming decade the unemployment problem will become very much more serious...
...The so-called aid, with all its well known conditions, means markets and greater development for the developed countries, but has not in fact managed to compensate for the money that leaves Latin America in payment of the external debt and as a result of the profits generated by direct private investment...
...La Politica Comercial Exterior de America Latina...
...2 5 The same is true of the major financial intermediaries and the financial sector as a whole.2 6 One of the principal stimulants of this process is precisely the foreign firms and their associated advertising and distribution apparatus...
...12 825-1/172...
...Central American integration has been no more than the integration that there can be between horse and rider, where the rider is represented by the foreign interests and the horse by the interests of the Central American population...
...And, during the last three years, these payments have risen so much as to exceed the inflow of foreign capital...
...4 1 Nonetheless, ECLA (and, simultaneously, the International Labor Organization of the United Nations, which comes to similar conclusions) has constructed estimates of equivalent employment, that is of the amount of plain unemployment plus the unemployment equivalent of those who are underemployed...
...By comparison, the poorest half of American citizens receive 24% or nearly twice as much relative income, and of course several times more absolute purchasing power, while the richest 20% receive 45% of U.S...
...5 estimated from 696/238-247...
...32 830!34...
...1962, p. 22...
...This is as true in the infrastructure-energy, transport, communications-as it is in the financial sector and in much of the legal and institutional market through which productive activity is channeled...
...4) Regional policy in the national sphere is meant to reduce the regional productive and income equalities, which exceed a ratio of 10 to 1 between the richest and poorest states of Brazil...
...46 DI/160-161 and 1'/ estimated from pp...
...And the 45% of the income receivers above them spend only 3% of their income on these consumer durables...
...But first, another colonial problem...
...Subscription price: $5 per year...
...Nonetheless, between 1955 and 1966, while the quantity of exports rose at a rate of 4.6% a year, the value of these exports increased by only 3.9% a year because of declining raw materials prices, and the purchasing power of these exports increased at only 3.3% a year due to the rising cost of manufactured goods...
Vol. 3 • December 1969 • No. 8
