After the Cold War: Views From Latin America; Sweeping Political
Changes Leave Latin Poor Still Poor  Published: May 30, 1992
(Page 3 of 6)  Yet the prevailing Latin American economic model
of the postwar age -- state ownership and intervention to
sustain unproductive industries; monopolies and trade
protection, and endless public works to buy political support --
crossed ideological lines. It was applied by leftist civilian
governments and anti-Communist military regimes, and it failed
them all.  Although Latin American economies grew at an average
rate of 5.5 percent in the 30 years before 1980, they also grew
heavy with inefficiencies, addicted to deficit spending and
dependent on imports of capital goods.  By the 1970's, the
result was often inflation that shot out of control. Then,
beginning with Mexico in 1982, countries found that they could
no longer pay their huge debts, and creditors began demanding
austerity and orthodox reform as the price of sustenance.  The
fall of the Berlin wall in 1989 not on