World Library  
Flag as Inappropriate
Email this Article

Raúl Prebisch

Raúl Prebisch
Born (1901-04-17)April 17, 1901
San Miguel de Tucumán
Died April 29, 1986(1986-04-29) (aged 85)
Santiago de Chile
Nationality Argentine
Field Development economics
School or tradition
Structuralist economics
Alma mater University of Buenos Aires
Contributions Singer–Prebisch thesis

Raúl Prebisch (April 17, 1901 – April 29, 1986) was an Argentine economist known for his contributions to structuralist economics such as the Prebisch–Singer hypothesis, which formed the basis of economic dependency theory. He is sometimes considered a Neo-Marxist economist.


  • Early years 1
  • Centre and periphery 2
  • UNCTAD secretary-general 3
  • Dependency theory 4
  • Legacy 5
  • Works 6
  • See also 7
  • References 8
  • Further reading 9
  • External links 10

Early years

He was born in Tucumán, Argentina, to German settlers and studied at the University of Buenos Aires, where he later taught. His brother Alberto Prebisch became a well-known architect. As a young man his writing was marked by a complete adherence to the idea of free-trade [1] but in the 1930s, as a result of the Great Depression he "converted" to protectionism. His previous beliefs had been supported by the spectacular economic growth of Argentina from the 1860s to 1920s as the country exported a large amount of beef and wheat to the United Kingdom. However, by the 1930s the Great Depression and the growing economic dominance of the United States, which exported beef and wheat rather than buying them, had significantly hurt the Argentinian economy.

Centre and periphery

The plight of Argentina forced Prebisch to reexamine the principle of comparative advantage described by David Ricardo, marking the creation of a new school of economic thought in the late 1940s. Prebisch separated out the purely theoretical aspects of economics from the actual practice of trade and the power structures that underlie trading institutions and agreements. His resulting division of the world into the economic "centre", consisting of industrialised nations such as the U.S., and the "periphery", consisting of primary producers, remains used to this day. As president of the Central Bank of Argentina he had noticed that during the Great Depression the prices of primary products, such as agricultural goods, fell much more than the prices of manufactured secondary products. However, he and his colleagues were unable to specify the exact mechanism for the difference, beyond hypothesizing that supply conditions of primary and secondary goods were different in that while farmers planted the same amount every year regardless of the price they would get, manufacturers were able to reduce or increase capacity to respond to expected changes in demand.

However, these ideas remained unformed until he was appointed executive director of the Economic Commission for Latin America (ECLAC or CEPAL) in 1950.[1] In 1950, he released a study The Economic Development of Latin America and its Principal Problems [1] that stated what is now known as the Singer-Prebisch thesis. German economist Hans Singer had separately arrived at a similar conclusion as Prebisch at roughly the same time, although his paper used a more empirical approach based on analysis of world trade statistics. The thesis begins with the observation that in the present world system the periphery produces primary goods to export to the center, and the centre produces secondary goods for export to the periphery. According to the thesis, as technology improves, the centre is able to retain the savings made, since it can retain higher wages and profits through developed unions and commercial institutions. At the periphery, companies and workers are weaker, and have to pass on technical savings to their customers in the form of lower prices. Prebisch pointed to the decline in the terms of trade between industrialised and non-industrialised countries, which meant peripheral nations had to export more to get the same value of industrial exports. Through this system, all of the benefits of technology and international trade would accrue to the centre.

Due to Prebisch's influence the ECLAC became the center of Third World activism in the UN, giving birth to the Latin American school of structuralist economics. At ECLAC, Prebisch became firmly associated with import substitution industrialization (ISI), in which a nation progressively changes its imports and internal production, focusing on industrialization, at the cost of imported "superfluous" goods in favor of capital and intermediate goods for a given period of time. As ECLAC became the target of increasingly harsh criticisms, and as ISI began to show serious flaws, Prebisch left.

The International Institute of Social Studies (ISS) awarded its Honorary Fellowship to Raúl Prebisch in 1977.

UNCTAD secretary-general

Between 1964 and 1969 he served as the founding secretary-general of the

  • Paul Berthoud, A Professional Life Narrative, 2008, worked with Raúl Prebisch in CEPAL and UNCTAD, and offers testimony from the inside.
  • Raúl Prebisch: Latin America's Keynes, The Economist, Mar 5th 2009
  • Profile at The International Institute of Social Studies (ISS)
  • Prebisch in Argentina
  • Raúl Prebisch and the XXI century development challenges

External links

  • John Toye and Richard Toye (2006), Raúl Prebisch and the Limits of Industrialization. In Dosman E.J. (ed.) Raúl Prebisch: Power, Principle, and the Ethics of Development, IDB-INTAL.
  • John Toye and Richard Toye (2003), The origins and interpretation of the Prebisch-Singer thesis. History of Political Economy, 35, 3: 437–467
  • Joseph L. Love, “Raúl Prebisch and the Origins of the Doctrine of Unequal Exchange,” Latin American Research Review 15 (1980): 45–72.
  • Flechsig, Steffen (1999), "Raul Prebisch's Contribution to a Humane World" in Global capitalism, liberation theology, and the social sciences: An analysis of the contradictions of modernity at the turn of the millennium (Andreas Mueller, Arno Tausch and Paul Zulehner (Eds.)), Nova Science Publishers, Hauppauge, Commack, New York
  • Dosman, Edgar J. (2008), The Life and Times of Raúl Prebisch, 1901–1986, McGill-Queen's University Press, Montreal, Kingston

Further reading

  1. ^ a b c Cypher, James M.; Dietz, James L. (2009). The process of economic development. London & New York: Routledge.  
  2. ^ .  


See also

  • Raúl Prebisch, “Commercial Policy in the Underdeveloped Countries,” American Economic Review 49 (May 1959): 251–273
  • Raúl Prebisch, The Economic Development of Latin America and Its Principal Problems (New York: United Nations, 1950)


Prior to the takeover of Chile by the Augusto Pinochet regime, economic thought in the country, particularly the University of Chile, was dominated by his ideas.[2]


During the 1960s, economists at ECLA developed an extension of Prebisch's thoughts on structuralism into dependency theory, in which economic development of the periphery is seen as a nearly impossible task. While dependency theory was the polar opposite of Prebisch and the ECLAC's original purpose, he continued to criticize the neo-classical economic forces that he felt were victimizing the global poor.

Dependency theory
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.