Varieties of capitalism, growth and redistribution in Asia and Latin America

Abstract

Both Latin America and Asia observed an impressive growth of their economies from the turn of the century until 2013. One of the differences between Asia and Latin America is that while redistribution and social security increased significantly in the second and growth was accompanied by reduced inequality, in Asia we have seen the contrary, increasing inequality, a more inefficient and decreasing social protection and no intent to redistribute. This paper wants to answer in what respects the mode of development of Asia, as characterized mainly by China, is more sustainable than the one followed by Latin America. 

JEL Classification: P5.