Economic and Social Impacts of Economic Models Applied in Latin America during the 20th and 21st Centuries

Abstract

This study aims to comparatively analyze the economic and social impacts of economic models applied in Latin America during the 20th and 21st centuries, in order to determine which types of Gross Domestic Product (GDP) growth translate into sustainable improvements in social indicators, poverty, and inequality. The research employed a comparative and descriptive methodology, based on a review of multiple sources, including Scopus-indexed articles, theses, and newspapers, and examined seven economic models across nine countries in the region. The results show that most countries transitioned through extractivist, industrializing, and neoliberal models, with uneven economic and social outcomes. Import Substitution Industrialization (ISI) and post-neoliberal models achieved more significant advances in equity, while the post-neoliberal and neo-developmental models promoted greater social inclusion and reduced inequalities. In contrast, neoliberalism generated economic growth but maintained persistent social gaps. It is concluded that industrialization models and those with a redistributive focus achieved social progress, whereas market-oriented schemes facilitated economic growth but with enduring inequalities. Therefore, GDP growth is not guaranteed solely through economic policies, but also through social inclusion.