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Explore the rich history, current scenarios, and future potential of Latin America, comprising 20 nations and diverse cultures. Learn about economic trends, political challenges, and social issues shaping this vibrant subcontinent.
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Latin America:Argentina & Brazil Past, Present & Future
Latin America 10,000 Km = Nagoya to Paris
One Subcontinent • 562 million people • 20 Countries • U$ 3.3 trillion GDP • Spanish, Portuguese, French languages • Resource rich (oil, land, water, minerals) • Under colonial rule from XVI to XIX century • Indians, Europeans, Africans, Asians (Chinese and Japanese) • Brazil & Peru: largest nikkei communities in the world
Differences • Colonial history • People • Culture • Political regimes • Economic structure • Soccer skills!
Latin America Today General Scenario • Democracy (more than 10-20 years) • Market economies (except socialism oriented Cuba & Venezuela) • (Post Import Substitution) trade openness Economy • Steady growth (4.55% in 2006, 4.23% in 2007) • Inflation under control (4.2% in 2006,but14.1% in 2007) • (Official) Unemployment still high (9.1% in 2004) • Exports (main partners: US, China, Europe) • Industrial components (e.g. Mexico, Brazil) • Commodities (e.g. Chile, Argentina)
Brazil Facts • Population: 189.3 million • Area: 8,514,877 km² (5th) • GDP per capita (PPP): U$ 9,700 • Federative Republic: 26 states, 1 FD • President: Luiz Inacio Lula da Silva (since 2003) Economic Facts • Interest rate: 12 % • Gini coefficient (UN): 0.57 • HDI: 0.800 • WB Doing Business Rank: 122nd(113 in 2007) • GDP growth: 4.3% in 2007 (4.1% in 2006)
Pending issues • Red Tape harnessing private sector • Politicization of regulatory agencies’ and state companies’ • Adequate Protection of the Environment Overcomeissues • Political / Macroeconomic predictability • Public Foreign Debt • Public Policy to Redistribute Income
Argentina Facts • Population: 39.4 million • Area: 2,766,890 km² (8th) • GDP per capita (PPP): U$ 13,307 • Federative Republic: 24 provinces • President: Cristina Fernández de Kirchner(since 2007) Economic Facts • Interest rate: 11.1 % • Gini coefficient (UN): 0.49 • HDI: 0.869 • WB Doing Business Rank: 109 (101 in 2007) • GDP growth: 9.1% in 2007 (8.2% in 2006)
Pending issues • Predictability and coherent policies • Inflation ghost • Growing inequality + growing insecurity • Corruption + Regulatory burden Overcomeissues • Political past • Debt restructuring (still some not paid debt) • Environment as political objective
Challenges • Stark income inequality • Heritages of protectionist, state-led industrialization • Poor quality, lacking infrastructure • Poor industry regulation • Rigid, heavily charged labor market