The recent economic crisis of Latin America, the most serious and extended of the history of the region, characterized by the decline of productivity and a higher vulnerability towards external disturbances, made evident the extinguishment of the industrialization mode of imports substitution, the weak international insertion of the countries of the region and the inability by the States to face the crisis efficiently. In addition, the rapid progress of the pro- duction technologies and the new conditions of competence prevailing in international trade had led to a fast erosion of the comparative advantages presented by the countries of Latin America because of natural resources abundance and of low cost of labor (Cardoza and Villegas, 1996). In accordance with data from the Inter American Development Bank (IDB, 1993), the coun- tries of Latin America showed decreases in the average annual grow rate of the gross domes- tic product (GDP) per inhabitant (from 3.3 % to -1.1 %) and in the average annual growth rate of gross internal investment (from 7.2% to -3.0%) of the decade of the ‘70s to the ‘80s. Simultaneously, during the decade of the ‘80s some countries reached average annual inflation rates of three digits.

Charum, J., Meyer, J.
Incae Business School

Cardoza, G. (1997). Scientific Migrations, Cooperation and Development Networks in Latin America and the Caribbean. In Charum, J. & Meyer, J. (Eds.), El Nuevo Nomadismo Científico. La Perspectiva Latinoamericana.