State or economic interventionism, that is, what government does to redistribute income, manipulate macroeconomic variables and restrict economic freedom, and its effect on development is an issue that has been studied by scholars. There are two extreme positions: those who consider the market as the most efficient mechanism to allocate resources and, consequently, propose a minimum state mainly dedicated to the defense of private property; and those who favor a state with tight controls of the economy. This article analyses state interventionism in Latin America, with special emphasis on three Andean countries: Colombia, Peru and Venezuela. The main conclusion is that state interventionism is necessary to boost economic growth, but when excessive it can lead to economic collapse, as in the case of Venezuela during the period 1999-2018
Martínez, A. (2018). State interventionism in Latin America: the cases of Colombia, Peru and Venezuela. Journal Studies of Public Policy, 4(2), 145–155. https://doi.org/10.5354/0719-6296.2018.51727
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