Should Latin America continue to put all its eggs in the commodity basket hoping for a return of the good times? Of course not. The region must diversify its economic base to focus on manufacturing and services as well. In the meantime, the agricultural sector needs greater unity across the sector to improve productivity, efficiency, and innovation.
In resolving a 40-year debt, Peruvians and, in particular, Peru’s international business class need to understand what is at stake here: not just the integrity and effectiveness of the judicial system but international opinion on how the government and the judicial system treats property and legal obligations.
The recent agreement of the Trans-Pacific Partnership is about far more than trade. It’s about creating a new international regime in the Pacific that will reinforce trade rules, smooth inter-state relations and promote international harmony with China.
The World Bank annual meeting in Lima, Peru this weeks offers a unique opportunity. While China’s massive investments in infrastructure are much-needed, they come with huge risks. The World Bank can reduce those by working with these new efforts—with all their capital—to apply the Bank’s experience in protecting the environment and local communities.
This week’s snapshot looks at Latin America’s rankings in the recently released Global Competitiveness Index, produced by the World Economic Forum. While the so-called ALBA countries continue to occupy the bottom of the regional pile, the biggest surprise is Brazil, which sunk 18 places.
Corruption scandals and slowing economic growth have forced President Michelle Bachelet to backtrack on her campaign promises. Now facing the lowest levels of popular approval for any elected president since the 1990 transition, can Bachelet re-focus her government’s policy drift in time for the 2016 local elections?
Was the death of South American rock idol Gustavo Cerati yet another example of Venezuela’s interminable collapse?
As the tragicomedy of the 2015-2016 election season plays out, falsehoods, hyperbole and mean-spirited attacks among contenders will proliferate. The issue of trade (along with illegal immigration) will be the proverbial whipping boy in this contest. While the contenders choose not to be fully informed of the facts, there is no excuse for individual citizens not to be.
Venezuelans are having children at higher rates than their counterparts in other countries, despite the economic crisis (aided, perhaps in part, by the condom shortage). The resulting non-working, dependent population will make it increasingly difficult for the government to sustain its high levels of redistribution, even if oil prices improve. Ultimately, demographics may be what doom the Bolivarian revolution.
In a series of posts—this our first—we will assess whether it is not only desirable but also possible that the two divergent trade blocs of Pacific Alliance and MERCOSUR in Latin America can converge as Chile is now pushing. Or is this just another exercise in empty political posturing?
