The Capitalist Revolution in Latin America

Oxford University Press 1997

This book is about the transformation of Latin American economies from extensive state control to largely market-oriented economies. The primary focus is on Mexico, Chile, and Argentina. Within the Latin American context, Paul Craig Roberts and IPE Research Fellow Karen LaFollette Araujo examine the background of the establishment of state-controlled economies in Latin America; the obstacles and opportunities facing the reformers, the people behind the reforms, and the consequences of the changes. Subsidiary themes include the operations and prospects of major international organizations, especially the World Bank.


"Eye-opening appraisals of the extraordinary potential of Latin American countries. Essential reading for those who have, or wish to have, commercial relations with our neighboring continent, Roberts and Araujo brilliantly combine a free market philosophical perspective with a proper appreciation of the region’s history."

Steve Forbes


"A compelling blend of substance and ideas–illuminates the ‘why’ of revolution in economies in Latin America–and elsewhere–and the need for revolution in the multilateral financial institutions. Readable and rewarding."

George P. Shultz,US Secretary of State


"Lessons from socialist failures have been learned more quickly in Latin America than in Europe or the United States. This book lays out the record of Latin American accomplishments to date, along with a precautionary assessment of near-term prospects."

James Buchanan
(Nobel Laureate in Economics, 1986)


"The lesson of this book is evident: Only open economies and open societies provide the adequate framework for prosperity."

Pedro Aspe
(Finance Minister of Mexico, 1988-1994)


"While the world’s attention has been focused on the demise of socialism and planning in Central and Eastern Europe, the quite remarkable liberalization of markets–both international and domestic–that has occurred in Latin America has gone larely unnoticed. Roberts and Araujo now bring us the story of the tortuous path that has brought capitalism and markets to Latin America."

Gale Johnson
(Professor of Economics, University of Chicago)


"The Capitalist Revolution in Lain America is a carefully crafted account of how the peddlers of quack ideas created an ecnomic disaster zone and how the descendants of Turgot have begun to alter the Latin landscape. Roberts and Araujo eschew Newspeak. The result is a refreshing, ‘politically incorrect’ volume that would meet with George Orwell’s approval."

Steve H. Hanke
(Advisor to Argentina’s ex-Minister of Economy, Comingo Cavallo, and Professor of Applied Economics, The Johns Hopkins University)




The Tyranny of Good Intentions How the Economy Was Lost The Supply-Side Revolution Alienation and the Soviet Economy Marx's Theory of Exchange, Alienation, and Crisis Meltdown: Inside the Soviet Economy The New Color Line The Capitalist Revolution in Latin America Chile: Dos Visiones La Era Allende-Pinochet

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