Latin America

Latin America

Latin America (excluding Mexico and the Caribbean but including Brazil) had over 508m people spread over 21 countries in 2018. Total GDP was 4.1 trillion USD and average GDP per capita was 8,849 USD. Total exports were 764 billion USD. By around 12,000 years ago humans had spread all the way down to South America from the top of North America. The first civilisation to emerge was the Norte Chico in around 3000 BC. They built cities along the northern coast of present-day Peru. They were followed by the Chavin (1500 BC to 300 BC), the Moche (100 to 700 AD), and eventually the Incas (1438 to 1533). In modern-day Colombia, the Muisca confederation emerged around 800 AD. They were defeated by the Spanish in 1537. In central America, the Mayans (classical period: 250 to 900 were the most important pre-Columbian civilisation. After Columbus discovered the Caribbean in 1492, he was made governor of the region. From the Caribbean, the Spanish slowly expanded to Mexico (defeating the Aztecs) and then down Central America to South America where they defeated the Muisca and Incas. Buenos Aires was first founded in 1536 and then re-founded in 1580. The Spanish colonies were governed by a Spanish elite that ensured resources flowed back to Spain. The Portuguese first discovered the coast of Brazil in 1500. Their first settlement was established in 1532. Rio De Janeiro was founded in 1567. With the success of sugar cane plantations, the Portuguese began to import large numbers of slaves from Africa. The British, French, and Dutch all ended up with territory in the Guianas. The Spanish colonies became independent between 1808 and 1826 (except Cuba and Puerto Rico). Resentment had been rising against Spanish rule and when Napoleon invaded Spain, the locals seized the initiative. The prince regent of Portugal and Brazil declared Brazil’s independence in 1822 after his father had returned to Portugal. The Royal family had fled to Brazil in 1807 following Napoleon’s invasion of Portugal. During the 19th century, the Latin American economies developed through agricultural and mining exports: Argentina (sheep and cattle), Brazil (coffee and sugar), Chile (copper), Colombia (coffee), and Peru (guano – fertiliser from bird-droppings). The economies generally struggled in the late 19th century because of a fall in commodity prices and political instability. Argentina was the exception and continued to grow strongly up until the Great Depression. Following WW2, most of Latin American countries pursued import substitution industrialisation policies. But by the 1970s and early 1980s, their economies had stagnated and high public debt led to a series of crises. This led to a general wave of economic liberalisation in the 1980s. In the 2000s, the resource rich countries benefitted from the Commodity boom. The free trade bloc, MERCOSUR, was established in 1991 between Argentina, Brazil, Paraguay, Uruguay, and Venezuela. Many of the surrounding countries have Association status with MERCOSUR. In 2019, MERCOSUR signed a free trade agreement with the EU. Chile joined the Asia-Pacific Economic Cooperation (APEC) forum in 1994 and Peru joined in 1998. By 2018, APEC had led to the 11 country Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) free trade agreement.

IPPC Report on Global Warming: Formidable Effort in Juggling with Fuzzy Numbers

In about 25 years the world will have used up its remaining “carbon credit” for the current century. Additional emissions will contribute to global warming beyond the tipping point of

WTO Forecasts Gradual Recovery Despite Cut in Trade Forecasts

World trade growth in 2013 and 2014 is likely to be slower than previously forecast. WTO economists now predict 2013 growth of 2.5% (down from the 3.3% forecast in April)

Learning the Ropes in Peru: Chinese Companies Engage Local Communities

Chinese companies are learning how to navigate the tricky waters of community politics in perhaps the most unlikely of places: Peru. Here, Chinese businesses have found it next to impossible

A Flash in the Pan Fizzles Out: The Downfall of a Brazilian Tycoon

Playing the markets and getting at the mega-bucks with financial wizardry does not a businessman make: Brazil’s flamboyant Eike Batista – erstwhile owner of the world’s seventh largest fortune –
Read more

Christopher Colford, World Bank: Competitive Cities Can Meet the Challenge of Job Creation

Focusing policies on competitive industries can provide jobs for the impoverished, hungry, restive urban millions As magnets for talent and crucibles of creativity, dynamic cities are the pacesetters for innovation

The Limitless Power of Latin America: Renewables to Light Up a Continent

In Latin America, renewable energy can supply up to 22 times the region’s power needs, even taking into consideration future growth. Wind, solar, geothermal, biomass and ocean energy sources can

IFC – International Finance Corporation: Eliminating Poverty, One Loan at a Time

The famed Peruvian economist Hernando de Soto has said it all along: The world’s destitute are oftentimes somewhat less poor than they think. It’s just that untold millions are toiling

Ernst & Young, Argentina: Trusts, Tax Evasion and Money Laundering

By Horacio López Tax division partner at Ernst & Young Argentina On June 30, 2013, it will be a year since General Resolution No. 3312 became effective, and in July
Read more

Corruption as the Scourge of Development: The Case of Venezuela

Corruption is the scourge of development. From outright stealing and cooking the books to kickbacks and price-fixing; corruption permeates some societies, stifles their growth and denies untold millions a measure

Otaviano Canuto, World Bank Group: China, Brazil – Two Tales of a Growth Slowdown

China and Brazil are both facing a growth slowdown, as compared to the period prior to the global financial crisis. They were both able to respond with aggressive anti-cyclical policies

Female Head of Petrobras is the ‘Inside Outsider’

As the first female CEO of a major global oil company appointed by Brazil’s first female president, there has been much interest in Maria das Graças Silva Foster. But her

Revenue Watch: 4 out of 5 Companies Fail in Good Governance

The Resource Governance Index (RGI) measures the quality of governance in the oil, gas and mining sector of 58 countries. From highly ranked countries like Norway, the United Kingdom and
Read more
CFI

Published by
CFI

Recent Posts

Middle East

5 years ago

North America

5 years ago

Europe

5 years ago

Asia Pacific

5 years ago

Africa

5 years ago