Abstract
This book evaluates the role of markets and of market governance in welfare provision in Latin America. The decades of the 1970s and 1980s saw a global shift in the relationship between markets and states. States withdrew from a range of economic activities as the postwar boom waned and distributive conflicts could not be resolved.1 Dispersal of this trend into the welfare domain took its earliest and most systematic form in Latin America. In the effort to streamline public care, state provision was cut, decentralized, infused with competitive forces, or privatized. A central clue to understanding the nature of this response is the common origin of even fairly divergent areas of policy reform in the neo-liberal movement, which has based its policy prescriptions closely on neo-classical economic thought and the libertarian school. Both of these entail a commitment to the maximization of markets, seen as optimizing economic efficiency and individual freedom. This commitment rests on the idea that markets are neutral or natural, separate from the political sphere.2 Although market neutrality is not the sole inspiration to policy reform, it has tended to dominate at a time when state economic involvement, both for financial (fiscal) and political reasons has been in retreat. At a policy level market neutrality has entailed an attempt to imitate or create perfect markets in as many goods as possible, including welfare.
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Haagh, L. (2002). Introduction: Markets and Rights in the Governance of Welfare — Latin America’s Market Reforms. In: Haagh, L., Helgø, C.T. (eds) Social Policy Reform and Market Governance in Latin America. St Antony’s Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230502680_1
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DOI: https://doi.org/10.1057/9780230502680_1
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