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This article explores the relationship among trade liberalization, deindustrialization, and income inequality in the more industrially advanced Latin American countries. It argues that, among the most important liberal reforms implemented during the 1980s and 1990s, trade reform was especially detrimental to equality because it accelerated deindustrialization. The analysis provides evidence to support this mechanism. Therefore, as the liberalization of trade increased, the deindustrialization process produced an increase in inequality. In short, evidence shows how the process of economic integration to the global market, as it took place, produced an increase in inequality through the destruction of formal employment. [ABSTRACT FROM AUTHOR]

The article present a project proposal to the Ford Foundation which analyzes the financial instability and overvaluation of the exchange rate in Latin America, particularly Brazil. It mentions that the main objectives of the project is to explore the changes in the world economy and Latin America in consequence of the global financial crisis and the nature of financial crises. The relationship between financial instability, exchange rate an deindustrialization in Brazil is also tackled.