Latin America should find a new formula for growth

June 27, 2015

For much of this century Latin America saw robust economic growth, a big fall in poverty and a swelling of the middle classes. Now the good times are over. The IMF expects growth of just 0.9% in 2015, which would be the fifth successive year of deceleration in the region. The Economist suggest that Latin America should find a new formula for growth after the commodity boom triggered by the industrialization of China.  For more information see two posts:

–  “Latin America. The loss of El Dorado”   Read More

– “Latin America’s economies. The lessons of stagnation”  Read More

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3 thoughts on “Latin America should find a new formula for growth

    1. There is no problem in taking advantage of the vast amount of natural resources that Latin America has. Natural resources are a blessing and an advantage. In fact, it would be absurd not to use the mining extraction, natural gas and the forestry to trigger economic growth, collect fiscal resources to invest in infraestructure and educacion, and create related industries, linked to our primary sectors (metalworking or petrochemestry, for example). Commodity prices might not be growing as before, but they are still high from an historical perspective; and also we can still push up an economic recovery by a quantity-effect, instead of relying on the former high price-effect.

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      1. An economy based on consumption, such as in North America and Europe, allows for the development of the middle class. An economy based on extraction, such as most South American economies (and the North American south before the civil war), does not allow for this type of development.

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