The power of small size economies in south america on international insertion : a special focus on Bolivia ; Le pouvoir des économies de petite taille en Amérique du sud à leur insertion internationale
Since the 60s, Latin America has been hearing the suggestions of International Economic Organizations (IEOs) on how to reach development. In the 70s, the United Nations suggested the politics of development, where the countries could define independently their own national and international politics to reach development and be equally rich. This did not work due to the increasing interdependence; therefore, in the second half of the 80s, the Washington Consensus replaced this policy. The Washington Consensus claims that globalization promotes multilateralism and does not allow countries to take unilateral decisions because they affect others and are being affected by other countries' decisions as well. Although this made a lot of sense, it would mean that the free market prevailed over the actions of the government, eliminating all barriers to trade and to foreign investments. According to the United Nations Commission for Trade and Development (UNCTAD), "International production has become the central structural characteristic of the world economy". A greater freedom to trade, plus the opening of capital flows, could lead the underdeveloped nations to economic growth showing as a sample the rich countries. Therefore, many Latin American countries joined the neoliberalism that was proposed by the Washington Consensus in 1989, reduced trade barriers, opened up their markets to foreign capitals and followed many of the indications of the IEOs in order to find development through internationalization. National economies are linked together by a network of trade, investment and credit and this link is supposed to bring development. The IEOs said that the national market size does not matter anymore if a country focuses on larger international markets. Internalizing the Washington Consensus norms was difficult for Small Size Economies (SSE) because the rules of this Consensus took all the countries as a group of a unique size and established on common and non discriminatory rules to approach multilateralization. ...