Third World Quarterly, Vol 14, No 4, 1993 For a renewal of development studies: Latin American theories and neoliberalism in the era of structural adjustment CRISTOBAL KAY In this paper I raise some contemporary concerns about development studies, particularly involving the neoclassical or neoliberal 'counter-revolution' in development theory. I then contrast the neoliberal position with the structuralist and dependency view regarding four key issues: structural adjustment, the new world order, state and markets, and development strategies. This comparison allows me to put into sharper focus the Latin American contribution to develop- ment studies since the Second World War.' I am going back to the future, so to speak, so as to be able to contribute towards the foundations of a post-Cold War development theory. It is my belief that in order to revitalise and overcome the impasse in development studies it is necessary, on the one hand, to go back to fundamentals and, on the other hand, to re-think development studies in the light of the new realities, critiques, and theoretical developments." This is especially necessary if the current hegemonic supremacy of neoliberalism in the social sciences, and particularly in economic policy, is to be counteracted. I hope that this article will further underline the fruitfulness of the development theories emanating from Latin America for gaining an understanding of the present development prob- lems and for providing an alternative framework to neoliberal analysis and policy."* The Crisis of Development Theory and the Resurgence of Neoliberalism In the postwar years, especially during the 1950s, the Latin American structural- ist school challenged neoclassical theory in general and orthodox trade theory in particular. The fierce critique by Latin American structuralism of neoclassical theory and the subsequent debates this generated, were part of a more general process which saw the emergence of development economics.'^ Development theory flourished during the 1950s and the 1960s, but by the mid-1970s it came under increasing attack by neoclassical theory, which in turn experienced a resurgence while development theory became unsure of itself/'' Today, neoliberalism is triumphant, especially in the wake of the end of the Cold War. Neoliberals are rushing to proclaim 'the end of history',^ the emergence of a new neoliberal world order, and as a minor footnote, the iixelevance of development studies.^ However, . this self-confident, if not arrogant Cristobal Kay is Associate Professor of Development Studies and Rural Development al the Institute of Social Studies, The Hague. 691