Economic Dependence On Latin America

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Economic Dependence in Latin America: From the Eagle to the Dragon?

Data taken from the World Bank database show a shift in the economic relations between the United States, China, and the major economies of Latin American region; Brazil and Argentina. This pattern suggests that, while China increases its presence in Latin America, the United States loses its role as major trading partner, primary source of funding, and predominant political influence in the region.

Loreily Criquit


For decades the institutions of the Washington Consensus (WC); International Monetary Fund (IMF) and World Bank (WB), have dominated the international political economy. Under the leadership of the United States, the Eagle, those …show more content…

Many authors highlight the increase in trade between China and Latin American states (Dosch & Goodman, 2012, Hardy, 2013, Nacht, 2012), driven by China’s need for raw material, which is supplied by many South American countries. Since the price of these products has increased due to the great demand from the Asian dragon, the countries of the Latin American region have profited from this trend (Hardy, 2013, p. ), enhancing thus their economic development (De Santibañes, 2009, Sanz, 2013) and making them less dependent on the United States (De Santibañes, 2009, p.18). As a new global player, has China come to fill the space formerly occupied by the United States and the institutions of the Washington Consensus in the countries of the Latin America Southern Cone? Is the Dragon displacing the Eagle in the region?
The Case of Argentina and Brazil
The economic relations between the Eagle, the Dragon, and Latin American countries are in full transformation. With the countries that have been major economic partners for the region; the European Union and the United States, going through economic crisis, China has come to play a very important role. As the US loses influence among these governments, the Asian giant gains more and more ground in economic matters.
China represents a great market for any state, and many of the countries of the region have been able to seize the moment. The figures 1, 2, 3 and 4; made by the author with data taken from the World Bank,

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