Neo-structuralism and reforming the Latin American state: lessons from the Irish case

Abstract

Since its first formulation in the 1990s, CEPAL's neo-structuralist paradigm has acted as an alternative policy paradigm to neo-liberalism in the region. While it has been much criticized, it is now being seen by some as the inspiration for the alternative to neo-liberalism that the new left-wing governments in the region are seeking to implement. In the light of this, a critical examination of what these ideas mean in practice is of major importance. This article argues that the new model of governance that has helped transform the Irish economy over the past two decades bears resemblance to key tenets of the CEPAL paradigm. The article begins by surveying the recent literature on state reform in Latin America, highlighting certain themes that emerge but also issues that are insufficiently developed. It goes on to outline key elements of the ECLAC neo-structuralist paradigm and examines how the Irish ‘model’ echoes its twin objectives of changing productive patterns with social equity, as well as many of the key policy instruments it recommends. Having established the relevance of the Irish case, the article then examines the implementation of two core features of the Irish ‘model’ – industrial policy and anti-poverty policy. The article ends by drawing conclusions from the Irish case for the challenges of state reform in Latin America.

Keywords:

• state reform
• ‘new left’ in Latin America
• Irish model of governance
• industrial policy
• social policy
• neo-structuralism
• CEPAL

Notes

1. It is difficult to group Leiva's work with the literature on the reform of the Latin America state. It is more a work of development theory, its primary interest being to critique the developmental adequacy of the neo-structuralist paradigm.

2. The present author has personal experience of this on visits to Uruguay and Argentina in late 2007 and to Costa Rica in early 2008 to lecture on the Celtic Tiger. Policy-makers in all three countries showed avid interest while in Costa Rica both the Minister for Labour and President Oscar Arias saw the Irish model as offering important policy lessons.