With populations striving to higher living standards and opportunity for a rising middle class, South America and the Caribbean would appear to have the fundamentals to evolve into more consumption-based economies as the most developed states of Europe and North America. However, the vulnerability to the price of commodities and exports has undermined the economic evolution and current health of these states and the values of their currencies. While many have been viewed as attractive direct investment opportunities over the last few years, flows of such funds also appear to have flowed, (weak currencies discourage investment as much as opportunities that may be viewed with a less favorable “risk/reward” profile). Read: “Winners & Losers of New Economic Environment in Latin America.”
The rapid industrialization of China and development of its infrastructure appeared as a boon to many South American economies, in particular those exporting industrial metals and other commodities. However, the benefits appear to be a mixed blessing. As was the case in the dependence of many of these economies on the US a century earlier, now that China’s economy has caught a chill, much of South America is suffering a cold. Read more from the Economic Commission for Latin America and the Caribbean (ECLAC).
Also Read more on “Global Finance” at Diplomat-Artist.