Publication

This publication reviews the evolution of social and economic policy in Latin America in the postwar era and suggests that Latin America's problems of social inequality can only be addressed through the embracement of a modern social contract, which is adapted to the demands and the constraints of an open economy. The author goes on in discussing critical elements of an open-economy social contract. These include unusually good fiscal policy, increasing effective taxation of the rich, making job mobility an explicit public policy goal and a regional strategy for better access to rich country markets.