Bulmer-Thomas V., Coatsworth J., Cortes-Conde R. The Cambridge Economic History of Latin America: Volume 2, The Long Twentieth Century

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672 Bibliographical Essays

and informal institutional mechanisms that resolve them. Although they do not

directly address Latin America, they offer useful insights into questions of com-

munal landholding and untitled claims relevant to Latin American history.

The debate on endogeneity versus exogeneity in institutional change and the

role of factor endowments was spurred by Stanley L. Engerman and Kenneth

L. Sokoloff, “Factor Endowments, Institutions, and Differential Paths of Growth

Among New World Economies: A View from Economic Historians of the United

States,” in How Latin America Fell Behind (cited previously), 260–304.Empirical

support by these authors and a co-author are in Engerman and Sokoloff, “The

Evolution of Suffrage in the New World” (National Bureau of Economic Research

Working Paper 8512,October 2001); and Elisa Mariscal and Kenneth L. Sokoloff,

“Schooling, Suffrage, and the Persistence of Inequality in the Americas, 1800–1945,”

in Stephen Haber, ed., Political Institutions and Economic Growth in Latin America

(Stanford, CA, 2000), 159–218.Arelated hypothesis about factor endowments

and political institutions in Central America is Jeffery M. Paige, Coffee and Power:

Revolution and the Rise of Democracy in Central America (Cambridge, MA, 1997). An

empirical test of the Engerman-Sokoloff factor-endowments hypothesis in coffee-

producing economies is Jeffrey Nugent and James A. Robinson, “Are Endowments

Fate?” (CEPR Discussion Papers 3206, 2002). Analytical and empirical models of

global processes with relation to the Engerman-Sokoloff approach are Jean-Marie

Baland and James A. Robinson, “Land and Power” (CEPR Discussion Papers 3800,

2003); and Daron Acemoglu, Simon Johnson, and James A. Robinson, “Reversal of

Fortune: Geography and Institutions in the Making of the Modern World Income

Distribution” (Working Paper, August 2001).

The argument that independence lifted imperialist constraints, making liber-

alization, along with multiple other paths, possible is best developed in John H.

Coatsworth, “Notes on the Comparative Economic History of Latin America and

the United States,” in Walter L. Bernecker and Hans Werner Tobler, eds., Devel-

opment and Underdevelopment in America: Contrasts of Economic Growth in North

and Latin America in Historical Perspective (New York, 1993); and “Economic and

Institutional Trajectories in Nineteenth-Century Latin America,” in Latin America

and the World Economy Since 1800 (cited previously), 23–54.Itisuseful to read

his “Obstacles to Economic Growth in Nineteenth-Century Mexico,” American

Historical Review 83, 1 (1978): 80–100, along with these works for concreteness

in a speciﬁc national context. This piece, along with Stephen Haber, Industry

and Underdevelopment: Industry and Underdevelopment: The Industrialization of

Mexico, 1890–1940 (Stanford, CA, 1989), is indispensable for the study of long-run

economic process in Mexico. A variety of alternative views about long-run process

or “the problem of persistence” in Latin America are found in Jeremy Adelman, ed.,

Colonial Legacies: The Problem of Persistence in Latin American History (New York,

1999). Two provocative and controversial examinations of long-run institutional

evolution are Robert H. Bates, Prosperity and Violence: The Political Economy of

Development (New York, 2001); and Hernando de Soto, The Mystery of Capital:

Why Capitalism Triumphs in the West and Fails Everywhere Else (New York, 2000).

When reading about long-run evolutionary processes, one cannot overlook the

dependency approach or its critics. There is no representative work in a ﬁeld

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Bibliographical Essays 673

fraught with acrimonious disagreement, but the most important contribution is

widely considered to be Fernando Henrique Cardoso and Enzo Faletto, Depen-

dency and Development in Latin America (Berkeley, CA, 1971). A comprehensive

bibliography and critique is Robert A. Packenham, The Dependency Movement:

Scholarship and Politics in Development Studies (Cambridge, MA, 1992). Another

valuable critique and dialogue is John Sheahan, Patterns of Development in Latin

America: Poverty, Repression, and Economic Strategy (Princeton, NJ, 1987).

On the rise of liberalism and its signiﬁcance for institutions after independence,

see Jeremy Adelman Republic of Capital: Buenos Aires and the Legal Transforma-

tion of the Atlantic World (Stanford, CA, 1999); Gabriel L. Negretto and Jos

Antonio Aguilar-Rivera, “Rethinking the Legacy of the Liberal State in Latin

America: The Cases of Argentina (1853–1916) and Mexico (1857–1910),” Journal

of Latin American Studies 32 (2000): 361–97;Gabriel L. Negretto, “Constitution-

Making and Institutional Design: Distributing Power Between Government and

Opposition in Three Argentine Constitutions (1853–60, 1949, 1994)” (Ph.D. dis-

sertation, Columbia University, 2000). An important contribution to the study

of institutional mechanisms that supported dictatorial regimes in Latin America

is Brian Loveman, Constitution of Tyranny: Regimes of Exception in Latin America

(Pittsburgh, PA, 1993). On the problem of learning and political stability, see Frank

Safford, “Politics, Ideology, and Society in Post-Independence Spanish America,”

in Leslie Bethell, ed., The Cambridge History of Latin America,vol. 3 (Cambridge,

1985). Examinations of the intellectual and political actors in the framing of lib-

eral constitutionalism and reforms are Charles A. Hale, Mexican Liberalism in the

Age of Mora, 1821–1853 (New Haven, CT, 1968), and The Transformation of Liber-

alism in Late Nineteenth-Century (Princeton, NJ, 1989); Richard N. Sinkin, The

Mexican Reform, 1855–1876:AStudy in Liberal Nation-Building (Austin, TX, 1979);

and Tortcuato S. Di Tella, National Popular Politics in Early Independent Mexico,

1820–1847 (Albuquerque, NM, 1996).

Surveys, synthesis, and analysis of Latin American constitutions are in William

W. P ierson and Federico G. Gil, Governments of Latin America (New York, 1957);

Jonathan Hartlyn and Arturo Valenzuela, “Democracy in Latin America since

1930,” in Leslie Bethell, ed., The Cambridge History of Latin America,vol. 4

(Cambridge, 1994), 99–162; and J. Lloyd Mecham, “Latin American Constitutions,

Nominal and Real,” Journal of Politics 21, 2 (May 1959): 258–75.Valuable summaries

of national constitutional histories are found in articles by country under the sub-

title “Constitutions” in Barbara Tenebaum, ed., Encyclopedia of Latin American

History and Culture, 5 vols. (New York, 1996). An accessible source of primary

constitutional documents for each Spanish American country is the Web site of

the Biblioteca Virtual Miguel de Cervantes, “Constituciones hispanoamericanas,”

http://cervantesvirtual.com/portal/constituciones/constituciones.html. The literature

on the constitutional histories in Latin America is more extensive than can be

covered here. Works that were of speciﬁc value to this chapter include Jos

ePareja

Paz-Soldan, Las constituciones del Peru (Madrid, 1954); Ramiro Borja y Borja, Las

constituciones del Ecuador (Madrid, 1951); Hernan G. Peralta, Las constituciones de

Costa Rica (Instituto de Estudios Pol

ıticos, 1962); Ricardo Gallardo, Las constitu-

ciones de El Salvador, 2 vols. (Madrid, 1961); Jorge Mario Garc

ıa Laguardia, La

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674 Bibliographical Essays

defensa de la constituci

on (Universidad de San Carlos de Guatemala, 1983); Jorge

Mario Garc

ıa Laguardia, La reforma liberal en Guatemala: Vida pol

ıtica y orden con-

stitucional (Mexico City, 1980); Luis Mari

nas Otero, Las constituciones de Honduras

(Madrid, 1962); Antonio Esquiva G

omez, Las constituciones pol

ıticas y sus reformas

en la historia de Nicaragua, 2 vols. (Editorial IHNCA(UCA), 2000).

Theories of public choice and positive political economy have emphasized the

signiﬁcance of centralism or federalism. For theoretical perspectives, a useful gen-

eral survey is Robert P. Inman and Daniel L. Rubinfeld, “The Political Economy

of Federalism,” in Dennis Mueller, ed., Perspective on Public Choice: A Hand-

book (Cambridge, 1997), 73–105;William Riker, Federalism: Origin, Operation,

Signiﬁcance (Boston, 1964); Yingyi Qian and Barry R. Weingast, “Federalism as

a Commitment to Preserving Market Incentives,” Journal of Economic Perspectives

11 (1997): 83–92; and Weingast, “Economic Role of Political Institutions” (cited

previously). An insightful historical analysis of the controversy over federalism

in postrevolutionary Argentina is Mir

on Burg

ın, Economic Aspects of Argentine

Federalism, 1820–1852 (Cambridge, MA, 1946). Other studies of federalism in spe-

ciﬁc countries are found in J. Lloyd Mecham, “The Origins of Federalism in

Mexico,” Hispanic American Historical Review 18, 2 (1938), 164–182;Percy Alvin

Martin, “Federalism in Brazil,” Hispanic American Historical Review 18, 2 (1938),

143–163;Marcello Carmagnani, ed., Federalismos latinoamericanos: Mexico, Brasil,

Argentina (Mexico, 1993); William R. Summerhill, “Market Intervention in a Back-

ward Economy: Railway Subsidy in Brazil, 1854–1913,” Economic History Review 51

(1998): 542–68, and “Institutional Determinants of Railroad Subsidy and Regula-

tion in Imperial Brazil, 1866–1934,” in Political Institutions and Economic Growth

in Latin America (cited previously), 21–68.

Indispensable as an introduction to the public policy question of the bureau-

cracy is Hernando de Soto, The Other Path (New York, 1989). Two valuable sur-

veys of the economics and institutionalist theoretical literature are Terry M. Moe,

“The Positive Theory of Public Bureaucracy,” and Ronald Wintrobe, “Modern

Bureaucratic Theory,” in Dennis C. Mueller, ed., Perspectives on Public Choice: A

Handbook (Cambridge, 1997), 429–54.Important contributions on its application

to Latin American bureaucracies are found in Barbara Geddes, “Building ‘State’

Autonomy in Brazil, 1930–64,” Comparative Politics 22, 1 (January 1990): 217–35;

and Politician’s Dilemma: Building State Capacity in Latin America (Berkeley, CA,

1994). On the role of twentieth-century corporatism and bureaucracy, see Jeffrey L.

Bortz, “The Legal and Contractual Limits to Private Property Rights in Mexican

Industry During the Revolution,” and Aurora G

omez Galvarriato, “Measuring

the Impact of Institutional Change in Capital-Labor Relations in the Mexican

Textile Industry, 1900–1930,” both in Jeffrey L. Bortz and Stephen Haber, eds.,

The Mexican Economy (cited previously), 255–88 and 289–323; and Auroran G

omez

Galvarriato, “The Impact of Revolution: Business and Labor in the Mexican Tex-

tile Industry, Orizaba, Veracruz, 1900–1930 (Ph.D. dissertation, Harvard Univer-

sity, 1999). For examinations of corporatism in international relations, see Robert

H. Bates, Open-Economy Politics: The Political Economy of the World Coffee Trade

(Princeton, NJ, 1997); and Alan Dye and Richard Sicotte, “How Did Brinkmanship

Save Chadbourne?: Credibility and the International Sugar Agreement of 1931,”

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Bibliographical Essays 675

Explorations in Economic History (forthcoming, 2005). Charles A. Hale, “Political

Ideas and Ideologies in Latin America, 1870–1930,” in Leslie Bethell, ed., Ideas and

Ideologies in Twentieth Century Latin America (Cambridge, 1996), 133–206, ana-

lyzes the ideological basis of twentieth-century corporatism. Compare and contrast

with Joseph L. Love, “Economic Ideas in Latin America since 1930,” 207–70,inthe

same volume. A valuable essay of signiﬁcance to the question of bureaucracy and

its signiﬁcance to the middle classes is Michael F. Jim

enez, “Elision of the Middle

Classes and Beyond: History, Politics, and Development Studies in Latin America’s

‘Short Twentieth Century,’” in Colonial Legacies (cited previously), 207–28.

On the history of the judiciary, see Eduardo Zimmermann, ed., Judicial Insti-

tutions in Nineteenth-Century Latin America (London, 1999), especially Zim-

mermann, “The Education of Lawyers and Judges in Argentina’s Organizaci

Nacional ”; Linda Arnold, “Privileged Justice? The Fuero Militar in Early National

Mexico”; and Osvaldo Barreneche, “Criminal Justice and State Formation in Early

Nineteenth-Century Buenos Aires.” Related works are Frank Safford, The Ideal of

the Practical: Colombia’s Struggles to Train a Technical Elite (Austin, TX, 1978), and

Victor M. Uribe Uran, Honorable Lives: Lawyers, Family, and Politics in Colombia,

1780–1850 (Pittsburgh, PA, 2000). Theoretical explanations of occurrence or nonoc-

currence of judicial independence are in William M. Landes and Richard A. Posner,

“The Independent Judiciary in an Interest-Group Perspective,” Journal of Law and

Economics 18, 3 (1975): 875–901;J.Mark Ramseyer, “The Puzzling (In)Dependence

of Courts: A Comparative Approach,” Journal of Legal Studies 23, 2 (1994): 721–47;

and Matthew C. Stephenson, “‘When the Devil Turns . . .’: The Political Founda-

tions of Independent Judicial Review,” Journal of Legal Studies 32, 1 (2003): 59–89.

Other provocative analyses of the signiﬁcance of judicial institutions in Argentine

political economy are Mat

ıas Iaryczower, Pablo Spiller, and Mariano Tommasi,

“Judicial Independence in Unstable Environments, Argentina 1935–1998,” Ameri-

can Journal of Political Science 46.4 (2002), pp. 669–716; and Lee Alston and Andr

Gallo, “The Erosion of Limited Government: Argentina 1930–1947” (SSRN Work-

ing Paper, June 2003).

On the question of the civil law tradition in Latin American political economy,

indispensable is the short, insightful book by John Henry Merryman, The Civil

Law Tradition: An Introduction to the Legal Systems of Western Europe and Latin

America (Stanford, CA, 1969). Analysis of the persistent institutional constraints

from the absolutist Spanish legal tradition is in John H. Coatsworth and Gabriel

To r tella Casares, “Institutions and Long-Run Economic Performance in Mexico

and Spain, 1800–2000”(David Rockefeller Center for Latin American Studies,

Working Papers on Latin America, No. 02/03-1). George M. Armstrong, Jr., Law

and Market Society in Mexico (New York, 1989) has assembled a detailed examina-

tion of the evolution and inﬂuence of Spanish colonial legal tradition on Mexican

society, which reaches different conclusions but complements Coatsworth and

To r tella.

Table 5.2 in the chapter was constructed using a valuable reference series for the

historical study of Latin American law and legal history; see Edwin M. Borchard,

Guide to the Law and Legal Literature of Argentina, Brazil and Chile (Washington,

1917); Edward Schuster, Guide to Law and Legal Literature of Central American

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676 Bibliographical Essays

Republics (New York, 1937); Richard C. Backus and Phanor J. Eder, AGuide to

the Law and Legal Literature of Colombia (Washington, DC, 1943); Crawford M.

Bishop and Anyda Marchant, AGuide to the Law and Legal Literature of Cuba, the

Dominican Republic and Haiti (Washington, DC, 1944); John T. Vance and Helen

L. Clagett, AGuide to the Law and Legal Literature of Mexico (Washington, DC,

1945).

On the land question and the relationships among property rights in land,

violence, and social justice, William Glade, The Latin American Economies (cited

previously) gives a valuable overview. Friedrich Katz, ed., Riots, Rebellion, and

Revolution: Rural Social Conﬂict in Mexico (Princeton, NJ, 1988)isarich collec-

tion of essays focusing on the question of conﬂicts over land between indigenous

communities and creoles. In particular, see John H. Coatsworth’s contribution,

“Patterns of Rural Rebellion in Latin America: Mexico in Comparative Perspec-

tive,” which surveys the history and literature on agrarian conﬂict and violence

over land. For a comparison of violence and seizures of land in Mexico before

and after Porﬁrio D

ıaz, see John H. Coatsworth, “Railroads, Landholding, and

Agrarian Protest in the Early Porﬁriato,” Hispanic American Historical Review 54,

1 (1974): 48–71, which is one of the earliest and highly original applications of

the new institutional economics to Latin America. Of value for understanding the

problems of making effective claims to public lands is Robert Holden, Mexico and

the Survey of Public Lands: The Management of Modernization 1876–1911 (DeKalb,

IL, 1994). Among the large literature on Mexican land reforms, see especially Jes

Silva Herzog, El agrarismo mexicano y la reforma agraria (Mexico City, 1959). On

the question of property rights in land after the transfer of Mexican California

to the United States in 1848, see Karen Clay, “Property Rights and Institutions:

Congress and the California Land Act of 1851,” Journal of Economic History 59,

1 (1999): 122–42, and Karen Clay and Werner Troesken, “Squatting and the Set-

tlement of the United States: New Evidence from Post-Gold Rush California,”

Advances in Agricultural Economic History 1 (2000): 207–34.

An interesting contrast with Mexican rural conﬂict is found in the Bolivian ques-

tion, for which the best analysis is Herbert S. Klein, Haciendas and ‘Ayllus’: Rural

Society in the Bolivian Andes in the Eighteenth and Nineteenth Centuries (Stanford,

CA, 1993). Several excellent studies of the Central American countries focus on

the land questions in relation to the indigenous agrarian institutions. See espe-

cially Hector Lindo-Fuentes, Weak Foundations: The Economy of El Salvador in

the Nineteenth Century (Berkeley, CA, 1990); David McCreery, RuralGuatemala

1760–1940 (Stanford, CA, 1994); and Paige, Coffee and Power (cited previously). A

series of monographs by George McCutchen McBride, The Agrarian Indian Com-

munities of Highland Bolivia (1921); The Land Systems of Mexico (New York, 1923);

and Chile: Land and Society (1936), offer valuable explanations of the legal and

customary frameworks of national “land systems,” which offer particularly valu-

able insights into the evolution and functioning of customary communal property

rights.

An analysis of the evolution of rural unrest and land reform in Colombia is Albert

O. Hirschman, “Land Use and Land Reform in Colombia,” in Journeys Toward

Progress (Garden City, NY, 1965). James T. Parsons, Antique

no Colonization in

Western Colombia (Berkeley, CA, 1968)isthe main work documenting the relatively

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Bibliographical Essays 677

egalitarian Antioque

no settlement and landholding patterns. Of related interest

are Marco Palacios, Coffee in Colombia 1850–1970:AnEconomic, Social and Political

History (Cambridge, 1980), and Jos

e Antonio Ocampo, Colombia y la econom

ıa

mundial, 1830–1910 (Mexico City, 1984).

On land reform, legal disputes, and violence in Brazil, see Lee J. Alston, Gary D.

Libecap, and Bernardo Mueller, Titles, Conﬂict and Land Use: The Development of

Property Rights and Land Reform on the Brazilian Amazon Frontier (Ann Arbor, MI,

1999), and “Property Rights and Land Conﬂict: A Comparison of Settlement of

the U.S. Western and Brazilian Amazon Frontiers,” in Latin America and the World

Economy Since 1800 (cited previously), 24–84, which gives a comparative analysis of

ambiguities in property rights in land in the twentieth century. Bernardo Mueller,

“The Economic History, Political Economy and Frontier Settlement of Land in

Brazil” (cited previously) examines the historical roots of differences in the United

States relative to Brazilian treatment of property rights in land. A related work

is Warren Dean, “Latifundia and Land Policy in Nineteenth Century Brazil,”

Hispanic American Historical Review 51 (November 1971): 602–25.

On the evolution of land privatization in Argentina, see Miguel Angel C

arcano,

Evoluci

on hist

orica del r

egimen de la tierra p

ublic, 1810–1916 (Buenos Aires, 1917).

Roberto Cort

es Conde, El progreso argentino: 1880–1914 (Buenos Aires, 1979);

Samuel Amaral, The Rise of Capitalism on the Pampas (Cambridge, 1997); Hilda

abato, Agrarian Capitalism and the World Market: Buenos Aires in the Pastoral Age,

1840–1890 (Albuquerque, NM, 1990); and Alan M. Taylor, “Latifundia as Malefac-

tor in Economic Development? Scale, Tenancy, and Agriculture on the Pampas,

1880–1914,” Research in Economic History 17 (1997): 261–300, address the question of

land concentration and the development of the land market in Argentina. Compar-

ative analyses of Argentina and Canada are Jeremy Adelman, Frontier Development:

Land, Labour, and Capital on the Wheatlands of Argentina and Canada 1890–1914

(Oxford, 1994); “The Social Bases of Technical Change: Mechanization of the

Wheatlands of Argentina and Canada, 1890–1914,” Comparative Studies in Soci-

ety and History 34, 2 (1992): 271–300; Carl Solberg, The Prairies and the Pampas:

Agrarian Policy in Canada and Argentina (Stanford, 1987); and D. C. M. Platt and

Guido Di Tella, eds., Argentina, Australia, and Canada: Studies in Comparative

Development, 1870–1965 (London, 1985). On the weakness of ﬁscal and monetary

institutions, see Roberto Cort

es Conde and George T. McCandless, “Argentina:

From Colony to Nation: Fiscal and Monetary Experience of the Eighteenth and

Nineteenth Centuries,” in Michael D. Bordo and Roberto Cort

es Conde, eds.,

Transferring Wealth and Power from the Old to the New World: Monetary and Fiscal

Institutions in the 17

Through the 19

Centuries (Cambridge, 2001), 378–413; and

Gerardo della Paolera and Alan M. Taylor, Straining at the Anchor: The Argentine

Currency Board and the Search for Macroeconomic Stability, 1880–1935 (Chicago,

2001).

On the Cuban sugar industry and contracts with cane growers, see Alan Dye,

Cuban Sugar in the Age of Mass Production: Technology and the Sugar Central, 1899–

1929 (Stanford, CA, 1998); “Why Did Cuban Cane Growers Lose Autonomy?

1889–1929,inLatin America and the World Economy (cited previously), 323–46;

“Avoiding Holdup: Asset Speciﬁcity and Technical Change in the Cuban Sugar

Industry, 1899–1929,” Journal of Economic History 54 (1994): 628–52; and Alan

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678 Bibliographical Essays

Dye and Richard Sicotte, “The U.S. Sugar Program and the Cuban Revolution”

(Barnard College Working Paper, 2003). Also, see Antonio Santamar

ıa Garc

ıa, Sin

ucar no hay pa

ıs: La industria azucarera y la econom

ıa cubana (1919–1939) (Seville,

2001), and Oscar Zanetti and Alejandro Garc

ıa, United Fruit Company: Un caso

del dominio imperialista en Cuba (Havana, 1976). For an alternative analysis, see

Ramiro Guerra y S

anchez, Az

ucar y poblaci

on en las Antillas, 2nd ed. (Havana,

1944).

The new institutionalist literature on credit markets and banking has focused

mostly on Mexico and Brazil. Stephen H. Haber, “Financial Markets and Indus-

trial Development: A Comparative Study of Governmental Regulation, Financial

Innovation, and Industrial Structure in Brazil and Mexico, 1840–1930,” in How

Latin America Fell Behind (cited previously), 146–78; and “Industrial Concentra-

tion and the Capital Markets: A Comparative Study of Brazil, Mexico, and the

United States, 1830–1930,” Journal of Economic History 51, 3 (1991): 559–80, compare

Mexico and Brazil and benchmark them against institutional change in early U.S.

banking. For examinations of the governance of banking in Mexico, see Noel Mau-

rer, The Power and the Money: The Mexican Financial System, 1876–1932 (Stanford,

2003); Maurer, “The Internal Consequence of External Credibility: Banking Reg-

ulation and Banking Performance in Porﬁrian Mexico,” and Maurer and Stephen

Haber, “Institutional Change and Economic Growth: Banks, Financial Markets,

and Mexican Industrialization, 1878–1913,” both in The Mexican Economy (cited

previously), 50–92 and 23–49; Carlos Marichal, “Obstacles to the Development

of Capital Markets in Nineteenth-Century Mexico,” in How Latin America Fell

Behind (cited previously), 118–45; and Noel Maurer and Tridib Sharma, “Enforcing

Property Rights Through Reputation: Mexico’s Early Industrialization, 1878–1913,”

Journal of Economic History 61, 4 (2001): 950–73.For valuable examinations of lend-

ing in traditional and modern mortgage markets and in extended kinship networks,

see Paulo Riguzzi, “The Legal System, Institutional Change, and Financial Regu-

lation in Mexico, 1870–1910:Mortgage Contracts and Long-Term Credit,” in The

Mexican Economy (cited previously), 120–60; and David W. Walker, Kinship, Busi-

ness, and Politics: The Mart

ınez del R

ıo Family in Mexico 1823–1867 (Austin, TX,

1986). For Brazil, see Gail D. Triner, Banking and Economic Development: Brazil,

1889–1930 (New York, 2000); and Stephen Haber, “The Efﬁciency Consequences

of Institutional Change: Financial Market Regulation and Industrial Productiv-

ity Growth in Brazil, 1866–1934”; and Anne Hanley, “Business Finance and the

ao Paulo Bolsa, 1886–1917,” both in Latin America and the World Economy (cited

previously), 275–322 and 115–38.For Peru, see Alfonso W. Quiroz, Domestic and

Foreign Finance in Modern Peru, 1850–1950 (Pittsburgh, PA, 1993).

CHAPTER 6 (ROBERTO CORT

ES CONDE)

There is no general work dealing in a comprehensive way with the ﬁscal and

monetary regimes of the Latin American countries in the long twentieth cen-

tury. Only Victor Bulmer-Thomas’s The Economic History of Latin America Since

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Bibliographical Essays 679

Independence, 2nd ed. (New York, 2003) deals with ﬁscal and monetary policies

in several chapters. Although it is a work of a general nature, it goes quite deeply

into this topic throughout the several periods under analysis, principally during

the expansion of the export economies and the era of industrialization with state

intervention. It provides a necessary and useful introduction for those interested

in the subject.

Needless to say, general works on the evolution of Latin American economies do

refer to the ﬁscal and monetary policies, but from a more general macroeconomic

approach. Among them, we may mention the most recent one by Rosemary Thorp,

Progress, Poverty and Exclusion (Washington, DC, 1998), the chapters related to the

various countries in Enrique C

ardenas, Jos

e Antonio Ocampo, and Rosemary

Thorp, eds., An Economic History of Twentieth Century Latin America (London,

2000), and some of the country chapters in Roberto Cort

es Conde and Shane

Hunt, eds., The Latin American Economies (New York, 1985). References can also be

found in Reinhardt Liehr, The Public Debt in Latin America in Historical Perspective

(Madrid, 1995). Finally, some speciﬁc issues related to ﬁscal problems such as the

Latin American debt are dealt with in Carlos Marichal, Historia de la Deuda Externa

de Am

erica Latina (Madrid, 1988).

Country Studies

The published materials on ﬁscal and monetary regimes of individual Latin Amer-

ican countries are quite uneven. Those devoted to monetary and banking regimes

are more numerous, whereas those dealing with ﬁscal institutions are few and only

exist as parts of other studies. In spite of the fact that both aspects were inter-

related because of the governments’ repeated use of money issue as a source of

ﬁnancing, monetary and banking questions seem to have been more interesting

than ﬁscal ones for contemporary businessmen, and as a result, more studies have

been devoted to monetary and banking issues. Besides, there are not many works

dealing jointly with both aspects.

mexico

Although it covers a period beyond that addressed by this chapter, the work by

Marcelo Carmagnani, Estado y Mercado. La Econom

ıa P

ublica del Liberalismo

Mexicano, 1850–1911 (Mexico City, 1994), which extends to the end of the Por-

ﬁriato, provides a detailed analysis of the preparation of the budget, taking into

consideration the political and economic aspects involved, and comparing the rev-

enue and expenditure budgeted with what actually happened. It provides statistical

information on expenditure and revenue at a disaggregated level based on primary

sources, which is very valuable for those interested in analyzing the subject on the

basis of the data contained in the Annual Reports of the Secretariat of Finance

and Public Credit for the 1867/68–1910/11 period and other ofﬁcial sources. Upon

comparing this information with other sources, in particular with the Histori-

cal Statistics of Mexico, differences were detected in some periods. The fact that

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680 Bibliographical Essays

Carmagnani’s work is based on primary and ofﬁcial sources led us to take him as

the main reference in all cases where it was possible.

The work by James W. Wilkie, La Revoluci

on Mexicana, gasto federal y cambio

social (Mexico City, 1967), includes a valuable collection of data on budgeted and

realized expenditure rearranged by the author by replacing the ofﬁcial classiﬁcations

used in the administrative sources with another set of categories organized by

expenditure targets, with the aim of revealing the policies’ possible aims in each case,

and how these could vary from the budgeted sums to the actual expenditures. This

modern classiﬁcation, perhaps the most useful aspect of his work, was criticized

for implying that the government was pursuing the same goals at the end of the

nineteenth and the beginning of the twentieth century as after World War II.

On the Porﬁriato, we ﬁnd Fernando Rosenweig’s articles on currency in Daniel

Cosio Villegas, ed., Historia Moderna de M

exico (Mexico City, 1965), and the stud-

ies on banking by Leanor Ludlow and Carlos Marichal, eds., La Banca en M

exico

1820–1920 (Mexico City, 1998). See also the works on the banking system by Charles

Conant, The Banking System of M

exico (Washington, DC, 1910), and the doctoral

thesis on banks of issue by M

onica G

omez, “Un Sistema Bancario con Emisi

de Billetes por Empresarios Privados: El Comportamiento del Banco Nacional de

exico en el Proceso de Creaci

on de Dinero. M

exico 1884–1910”(Ph.D. disserta-

tion, El Colegio de M

exico, 2001), which is an indispensable tool to learn about

an important case of a bank of issue in a country with a metallic standard.

Information on the revolutionary period is very scarce because of the fact that

the state was undergoing a crisis and each revolutionary leader had his own center

of power. A relevant work is that by Estela Zabala, “Los Impuestos y los Problemas

Financieros de los Primeros A

nos de la Revoluci

on,” Historia Mexicana 31, 3 (1982),

and also the article by Francisco Rodr

ıguez Garza, “La reforma ﬁscal Federal en el

exico de entre guerra,” in Tiempo y Devenir en la Historia Econ

omica de M

exico

(Mexico City, 2002), and that by Luis Aboites Aguilar, “Imposici

on directa, com-

bate a la anarqu

ıa y cambios en la relaci

on federaci

on-estados. Una caracterizaci

general de los impuestos internos en M

exico 1920–1950”(Mexico City, 2001).

These last two works, showing the special characteristics of the postrevolutionary

tax system in Mexico, are key to understanding the evolution of the ﬁscal regime

and the debate on ﬁscal powers, especially the old opposition between centralizing

trends and those granting more power to the states. This tension lasted for a long

time, as evidenced in the struggle to abolish the alcabalas (tariffs imposed by states

on interstate commerce) and the problems of double taxation, anarchy in the tax

regime, and the central government’s share of the revenues the states collected.

On monetary regimes, the work by Edwin Walter Kemmerer is essential; E. W.

Kemmerer, Inﬂation and Revolution. The Mexican Experience 1912–1917 (Princeton,

NJ, 1940). Kemmerer was a professor at Princeton and a renowned advisor in

the Andean countries, where he contributed to the creation of central banks. His

work deals with the different revolutionary money issues and inﬂation. Although

aimed at a different purpose, there are useful references also in Emilio Zebad

ua,

Banqueros y Revolucionarios. La Soberan

ıa Financiera de M

exico, 1914–1929 (Mexico

City, 1994).

The most comprehensive work on monetary policy for most of the twentieth

century is the Annual Report by the Banco de M

exico. See also Cincuenta A

nos

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0521812909bbs CB929-Bulmer 052181290 9 September 30, 2005 16:39

Bibliographical Essays 681

de Banca Central. Ensayos Conmemorativos 1925–1975 (Mexico City, 1976), pub-

lished for the ﬁftieth anniversary of the Bank, especially the chapters by Ernesto

Fern

andez Hurtado, “Reﬂexiones sobre aspectos fundamentales de la Banca Cen-

tral en M

exico,” and by Manuel Cavazos Lerma, “Cincuenta a

nos de Pol

ıtica

Monetaria,” which analyze the several functions the bank performed, including

bank of issue and commercial bank, in addition to specialized Central Bank. Also

relevant is the work by Dwight Brothers and Leopoldo Sol

ıs, Evoluci

on Financiera

de M

exico (Mexico City, 1967), with explanations about the reasons why the Bank

of Mexico did not fulﬁll the classic functions of a central bank by using tools such

as the interest rate and open-market transactions. This might have been because

of the lack of a debt market that forced the bank to regulate reserves and handle

credit in a selective way by operating with rediscounts. The authors also show how

the Banco de M

exico was subordinate to the Secretariat of Finance, and that ﬁscal

policy relied on ﬁnancing of government deﬁcits through the ﬁnancial system.

On the postrevolutionary period, the book by Enrique C

ardenas, La Hacienda

ublica y la Pol

ıtica Econ

omica, 1929–1958 (Mexico City, 1994), is very valuable

with its analysis of the behavior of revenue and expenditure and the resulting

deﬁcits in relation to the different economic policies pursued in the period under

study.

On the stabilizing development period, the article by its main architect, Antonio

Ortiz Mena, is still essential; although involved in its implementation, he offers

a balanced description of the policy purposes and development in “El Desarrollo

Estabilizador,” El Trimestre Econ

omico 146 (1970).

On the most recent period, and in spite of its subjective criticism, there is a good

article by Marcos Ch

avez, “Las Finanzas P

ublicas de M

exico, 1970–2000.Cr

onica

del Fracaso de la Pol

ıtica Fiscal” in Programa de Ciencia, Tecnolog

ıa y Desarrollo

(Procientec) (Mexico City, 2001).

brazil

The most complete work on the evolution of ﬁscal variables is that by Raymond

Goldsmith, Desenvolvimento Financeiro sob um S

eculo de Inﬂac¸ao (Brasilia, 1984).

He undertook the task of rearranging a number of series and made estimations – of

GDP, among others – to show the importance of ﬁnance. It is a strictly quantitative

work, which does not provide much information about the main institutional

facts and economic policies. To complement the study by Goldsmith, a suitable

work is Marcelo de Paiva Abreu, ed., AOrdem do Progresso. Cem anos de pol

ıtica

econ

omica republicana 1889–1989 (R

ıo de Janeiro, 1990), which, although dealing

with economic problems of a general nature, makes reference to the ﬁscal and

monetary policies in each of the periods under consideration.

The book by Winston Fritsch, External Constraints on Economic Policy in Brazil,

1889–1930 (Pittsburgh, PA, 1988), although also dealing with the general aspects of

the economic policies from the Old Republic to the 1930 revolution, is the most

complete work from the point of view of the description of the successive ﬁscal

and monetary policies applied during that period and the circumstances that led

to their implementation. Fritsch challenges the well-known hypothesis that ﬁscal

and monetary policies were the result of the pressure exerted by the hegemonic