The objective of this assignment is to illustrate the social and economic effects that were caused by the structural adjustment policies implemented in Latin America. In order to reduce inflation, eliminate balance of payment deficit, and promote economic growth, Latin American countries adopted market friendly and export promotion policies inspired by "Washington Consensus." However, after three decades of neoliberalism Latin American countries have failed to overcome the economic crisis, and have led to rising level of poverty and inequality. the group will use Mexico and Argentina countries as cases to show the failure of neoliberalism in Latin America.
Background
Crisis of Import-Substituting Industrialization
From the end of the World War II, Latin America adopted the policy of import-substitution industrialization (ISI) as a strategy of development and industrialization.High tariffs, subsidies and incentives to local industries, and exchanges controls were the main components of (ISI). However, at the end of 1980s the ISI strategy created many undesirable effects. Problems with the balance of trade and payments, raise of domestic prices-inflation-, greater inequality and less competitive national industries became the reality by which goverments move from (ISI) to the strategy of export oriented policies.
Washington Consensus
It was a set of specific economic policy prescriptions promoted by institutions such as International Monetay Fund, World Bank, and the US Treasury Department to the Latin America.This economic orthodoxy advocated a new development model based on the primacy of market liberalism,out-ward orientation, and state contraction.Certainly, the neoliberal policy increased economic growth and massive flow of capital; but it also generated huge social inequality, poverty, and political inestability.
Some sources
Neoliberal Policies and Inequality Issue
Washington consensus
For Latin America, Globalization

**What areas our group plan to address? What we know about this issue already?**The objective of this assignment is to illustrate the social and economic effects that were caused by the structural adjustment policies implemented in Latin America in the 1980s and 1990s. In order to reduce inflation, eliminate balance of payment deficit, and promote economic growth, Latin American countries adopted market friendly and export promotion policies inspired by "Washington Consensus" at the behest of the International Monetary Fund and the World Bank, who offered them assistance with debt repayments should they implement this new, experimental policies.**How we will approach this issue?**Firstly we will provide some background on the economic conditions of the region - why and how these policies were put into place. We will also explore the origins of these policies and how they are meant to work. We are going to use Mexico and Argentina as specific examples to portray the issue of neoliberalism and inequality issues in Latin America. Our goal is to evaluate the impact on these economic policies in the region and find out to what extent these policies have contributed to inequality in the region.**Why we are approaching it this way?**We chose to focus on Mexico and Argentina because each country will bring out unique differences and commonalities of neoliberlism and inequality issues. It will also provide a richer understanding of the issue to our audience.**Why do you think it is an important issue to address?**Extremely Vital. The implementation of these policies has brought about lasting effects in Latin American countries and affected the course of their economic, social, and political histories. Our questions bellow address in depth why this issue needs attention and research.**How we are dividing the work within our group members:**