Table Of ContentESSAYS ON
MEXICO, CENTRAL
AND SOUTH AMERICA
Scholarly Debates from
the 19508 to the 19908
Series Editor
JORGE I. DOMINGUEZ
Harvard University
SERIES CONTENTS
1. ECONOMIC STRATEGIES
AND POLICIES IN LATIN AMERICA
2. AUTHORITARIAN AND DEMOCRATIC
REGIMES IN LATIN AMERICA
3. THE ROMAN CATHOLIC CHURCH
IN LATIN AMERICA
4. SOCIAL MOVEMENTS IN LATIN AMERICA
The Experience ofPeasants, Workers, Women,
the Urban Poor, and the Middle Sectors
5. PARTIES, ELECTIONS, AND POLITICAL
PARTICIPATION IN LATIN AMERICA
6. LATIN AMERICA'S INTERNATIONAL RELATIONS
AND THEIR DOMESTIC CONSEQUENCES
War and Peace, Dependency and Autonomy,
Integration and Disintegration
7. RACE AND ETHNICITY IN LATIN AMERICA
VOLUME
6
LATIN AMERICA'S
INTERNATIONAL
RELATIONS AND
THEIR DOMESTIC
CONSEQUENCES
WAR AND PEACE,
DEPENDENCY AND
AUTONOMY, INTEGRATION
AND DISINTEGRATION
Edited with an introduction by
JORGE I. DOMINGUEZ
~l
Routledge
~~
Taylor&FrancisGroup
NEWYORKAND LONDON
Firstpublished1994byGarlandPublishing, Inc.
This editionpublished2013 byRoutledge
711 ThirdAvenue, NewYork, NY 10017,USA
2ParkSquare,Milton Park, Abingdon, Oxon OX144RN
Routledgeisan imprintofthe Taylor &Francis Group, an informa business
Introductioncopyright©1994Jorge I. Dominguez
All rightsreserved
LibraryofCongressCataloging-in-PublicationData
LatinAmerica'sinternationalrelations andtheirdomestic
consequences: war and peace, dependency and autonomy,
integration and disintegration I editedwith an introductionby
Jorge I. Dominguez.
p. cm. - (Essays on Mexico, Central and South
America; v. 6)
ISBN 0-8153-1490-6 (alk. paper)
1. Latin America-Foreign relations-1948- 2. Latin
America-Dependencyonforeign countries. 3. LatinAmerica
Economic integration. 4. Debts, External-Latin America.
5. LatinAmerica-Relations-UnitedStates. 6. United States
Relations-Latin America. I. Dominguez, Jorge I., 1945-
II. Series.
FI414.2.L3275 1994
327.8-dc20 93-45524
CIP
CONTENTS
Introduction vii
TheBalanceofPowerinNineteenth-CenturySouth
America: An ExploratoryEssay
RobertN. Burr 1
Economicsand DifferentialPatterns ofPolitical
Integration: Projections about UnityinLatinAmerica
ErnestB. Haas andPhilippe C. Schmitter 25
TheStructureofDependence
Theotonio Dos Santos 59
TheRise andthe DeclineofLatinAmericanEconomic
Integration
Miguel S. Wionczek 65
ManipulatingInternationalCommodityMarkets: Brazilian
Coffee Policy 1906to 1962
Stephen D. Krasner 83
Dependency: ACritical Synthesis ofthe Literature
RonaldH. Chilcote 114
Petroleum PolicyinVenezuela: Lessonsinthe Politics
ofDependence Management
Franklin Tugwell 140
Multinationals, State-ownedCorporations, andthe
TransformationofImperialism:ABrazilian Case Study
PeterEvans 177
Consensus andDivergence: The State ofthe Literature
onInter-AmericanRelationsinthe 1970s
Jorge I. Dominguez 199
InterstateConflictBehaviorand Regional Potential
for Conflictin LatinAmerica
WolfGrabendorff 239
StateInstitutions, Ideology, andAutonomousTech-
nological Development: Computers and NuclearEnergy
inArgentina andBrazil
EmanuelAdler 267
vi Contents
TheDebtCrisis: StructuralExplanations ofCountry
Performance
AndrewBergandJeffrey Sachs 299
Classes, Sectors, and ForeignDebtinLatinAmerica
JeffFrieden 335
TheUnitedStates and LatinAmericainthe 1960s
Joseph S. Tulchin 355
World Economic Cycles and CentralAmericanPolitical
Instability
Marc Lindenberg 391
PreemptingRevolutions: TheBoundaries ofU.S. Influence
RobertA. Pastor 416
Acknowledgments 449
INTRODUCTION
Of all of the world's regions in the twentieth century, Latin
America has been freest from conventional interstate war. Thus
scholars have paid more attention to international economics.
Latin American and Latin Americanist scholars pioneered much
research on international dependency, but also on bargaining
between governments and multinational firms, on the prospects
for regional integration, and on the extensive debt crisis ofthe
1980s.TheroleoftheUnitedStatesanditsinternationalinterven
tionshas alsoreceivedscholarlyscrutiny.
Latin America's interstate relations had not always been
peaceful. RobertBurrtracedthe developmentofanequilibriumof
power among South America's states in the nineteenth century.
Such a "balance ofpower" occurred only after states had consoli
dated their internal dominion, extra-continental influence on
South America had been curtailed, and channels ofcommunica
tion among the governments had reached the point where each
actorunderstood"thatitsinterestscouldbeaffectedbythe activi
ties ofothers."Several"balanceofpower"relationshipsdeveloped
separately at first. The earliest emerged in the 1820s among the
states crossed by the River Plate; the second took shape in the
1830s along South America's west coast. Only in the 1860s did a
continental system become consolidated when the River Plate
states fought the Paraguayanwar atthe same time that the west
coaststatesfought againstSpain.Afterthe 1880s,thisbalance of
power becameincreasinglyeffectivein managing continuingcon
flicts withoutinterstatewar.
WolfGrabendorffexamined similar issues in the years after
1945. From the mid-1940s to the mid-1960s, he argued, U.S.
hegemony,theattentiontoColdWarissues,andtheconcernswith
domestic securityproblems dampenedthelikelihoodofinterstate
conflict. From the 1960s to the early 1980s, however, military
governments increased the level of interstate conflict, though
generally short ofwar. Grabendorffidentified five kinds of con
flicts: somefocusedonideologicalissues(communism,democracy,
humanrights), someonthescopeofU.S. orBritishhegemony,yet
others onterritorial andborder disputes, a fourth setcentered on
v1,1,
viii Introduction
disputed access to natural resources, and, finally, there were
conflicts overillegalmigration. Allfive hadledto acts ofwar, and
some to actual war. And yet the region's frequency ofinterstate
warremainedbelowthatoftherest oftheworld.
Governments and scholars turned their attention mainly to
international economic issues. In the 1960s, regional integration
effortsreceivedspecialattention.ErnstHaasandPhilippeSchmitter
examined the prospects for integration in Latin America. They
analyzed background conditions, conditions at the time of eco
nomic union, and integration process conditions for the Central
American Common Market (CACM) andthe LatinAmerican Free
Trade Association (LAFTA) in the light ofcomparative evidence.
They were especially interested in the "chances of automatic
politization," that is, the likelihood that the process of initially
"technical" and "non-controversial" economic integration would
"spillover" to foster political integration. Despite some favorable
trends, they concluded against such prospects in the case ofthe
LAFTA; in the case ofthe CACM, though cautious, they believed
thattheprospectsforpoliticalintegrationwerethebestoutsideof
the EuropeanEconomicCommunity.
By the end of the 1960s, Miguel Wionczek had written an
epitaphfor LatinAmericanintegration. Thoughregionalintegra
tionschemescontinuedtoprosper,regionalintegrationdidnot. In
1969, EI Salvador and Honduras went to war over territorial and
migration disputes, deeply hurting the CACM.-The CACM had
fosteredintra-regionaltradeespeciallyinmanufacturedproducts,
but at substantial economic and social costs because of high
protectionist barriers set up around the region. The LAFTA suc
ceeded even less, as Haas and Schmitter had expected, because
governments were unprepared to launch a genuine integration
process. Theunevennessofeconomicdevelopment atthe outsetof
the integration process made the LAFTA task formidable and, in
the end, unachievable.
In the mid-1960s, Latin American scholars turned to analyze
thestructureofinternationaldependencetounderstandtheinsuf
ficiencies and distortions of development. Theotonio dos Santos
argued that these economies were "conditioned by the develop
ment and expansion of another economy to which the former is
subjected."Dependentcountries,therefore, coulddeveloponly"as
a reflection" ofthe industrial countries. Underdevelopmentwas a
"consequence and part of the process of the world expansion of
capitalism"and"integrallylinkedtoit."
Soonmanybranchesofdependencyanalysessprouted. Ronald
Chilcotecriticallyassessedthis literature. Heidentifiedfour sub-
Introduction ix
schools of thought. For some, such as Andre Gunder Frank,
dependencywas mainlyaninternationalphenomenon, withlittle
attention to internal variations. For a second group, such as
Benjamin Cohen and Anibal Quijano, dependency was a way to
discussimperialismandclassstruggle.Forothers,suchasTheotonio
dosSantos,dependencyfocusedontheroleofmultinationalfirms,
nottradeassuch.Finally,forscholarssuchasFernandoHenrique
Cardoso,dependencydistorteddevelopmentbutdidnotpreventit;
dependent economies remained dynamic and participants in "as
sociateddependentdevelopment."
Asomewhatcontraryviewofinternationaleconomicrelations
emphasized the relative bargaining opportunities and skills of
LatinAmericangovernments.StephenKrasneranalyzedthecom
petenceandsuccess ofBraziliangovernments earlyinthetwenti
eth century in defending the international price ofcoffee in con
trast with their much lessened success in mid-century. He called
attention to three clusters of variables: international product
marketshareandpriceelasticitiesforproducts,thegovernmental
and market response in consumingcountries, and the capacityof
producing country governments to control their own private pro
ducers. Bargainingcouldchangethetermsofdependency.
In the same vein, Franklin Tugwell explored the politics of
dependence management in Venezuela's petroleum industry. He
showed that Venezuela's elites learned and acquired strategic
information to improve their bargaining position over time rela
tive to multinational oil firms. The learning occurred during the
interdependent bargaining itself; conflict and experimentation
wereessentialtothisprocess. Ideologyprovedvaluableas"afilter
for information, a source ofnew bargaining positions" and as an
"over-archingguideandjustificationfor policyasa whole."
In response to these bargaining arguments, some scholars
sympathetic to dependency perspectives shifted their own. Peter
Evans called attention to the new role of state enterprises as a
"necessary partner in the implantation of capitalism." A "triple
alliance"ofmultinational,state,anddomesticprivatefirmswasat
the core ofthe new model ofdevelopment. Thus imperialism had
beentransformedand, Evans argued,was"notnecessarilyincom
patiblewithindustrialization."
JorgeDominguezsummarizedmuchofthisscholarship,point
ingto elements ofconsensus and divergenceinthe studyofinter
Americanrelationsbytheendofthe1970s.Healsoidentifiedeight
scholarlyperspectives. Liberalsemphasizedtheharmonyofinter
ests between the United States and Latin America; "orthodox
dependency" focused on the consistentlynegative external condi-
