Journal Article
The objective of this article is to outline the economic context in which Latin American companies have developed throughout the last ten years. This is intended to provide an insightful backdrop for executives of Latin American companies, and to aid them in formulating their Human Resource Management policies more effectively.
The article offers a detailed view of key drivers for the wide-ranging economic reforms in the region during the 1990s, chiefly the Washington Consensus and the increased political stability. It highlights the key developments and results of the reforms in the areas of Privatization, Foreign Investment, and Trade liberalization. It further provides insights into how the opening up of the regional economies resulted in multinationals penetrating and thereafter increasing their ownership of business across sectors, and how, as a result, the public sector's share shrunk during the period and how local businesses adapted to this changed environment. The article also touches upon some key structural changes in the labor market as a result of the developments of the 1990s. This is followed by an exploration of the key themes and challenges facing the regional economies in the years ahead - economic, social, and geo-political.
