Financialization, Austerity, and Inclusion in Latin America and the Caribbean

Financialization,Austerity,and Inclusion in Latin America and the Caribbean explores the spread of financialization since 1980, its effects on government budgeting and social inclusion, and options for increased inclusivity. It argues that financialization is a complex social process with ideational origins and that deeper financial integration, credit expansion, and reliance on international bond markets drive governments to cut social spending and increase inequality, but also ameliorate absolute poverty.

Format: Hardback
Length: 231 pages
Publication date: 15 December 2023
Publisher: Lexington Books

Financialization,Austerity,and Inclusion in Latin America and the Caribbean delves into the pervasive spread of financialization since 1980, shedding light on its ideational roots beyond the region. It explores the profound effects of financialization on government budgeting and social inclusion, while also presenting avenues for enhanced inclusivity. Rana S. Gautam, Diogo L. Pinheiro, and Dwight Wilson contend that financialization is a multifaceted social phenomenon with ideational origins, involving active participation of national-level actors. Their research reveals that deeper financial integration, expanded credit, and reliance on international bond markets exert pressure on governments to reduce social spending, contributing to inequality. However, it also demonstrates that financialization can alleviate absolute poverty. Consequently, there exists an opportunity for agents to shape financialization and promote greater inclusivity.

The authors argue that financialization is not merely a passive response to external pressures but a complex social process driven by national-level actors. They trace the origins of financialization to global economic trends and the changing role of governments in managing economies. They highlight the significance of financial institutions, markets, and regulations in shaping economic outcomes and social policies.

The book explores the effects of financialization on government budgeting and social inclusion in Latin America and the Caribbean. It examines how financial institutions and markets have influenced public spending, tax policies, and social welfare programs. The authors argue that financialization has led to a reduction in government spending on social services, education, and healthcare, contributing to inequality and social exclusion.

However, the book also highlights the potential for increased inclusivity through financialization. It suggests that deeper financial integration can facilitate the access to credit for individuals and businesses, promoting economic growth and reducing poverty. The expansion of international bond markets can provide governments with additional funding sources, allowing them to invest in social programs and infrastructure.

The authors propose several policy recommendations to promote greater inclusivity in the context of financialization. They advocate for policies that prioritize public spending on social services, education, and healthcare, while also promoting financial market regulation and transparency. They also suggest the development of financial education programs and the promotion of financial inclusion initiatives to ensure that all individuals have access to financial services.

In conclusion, Financialization,Austerity,and Inclusion in Latin America and the Caribbean offers a comprehensive analysis of the spread of financialization since 1980, its effects on government budgeting and social inclusion, and the options for increased inclusivity. The book highlights the complex social processes driving financialization and the need for proactive policies to promote greater social and economic equality. By understanding the origins and effects of financialization, policymakers and agents can work towards shaping financialization in a way that benefits society as a whole.

Dimension: 229 x 152 (mm)
ISBN-13: 9781793647955