Economic Dependence On Latin America

In the current international economic system, the behaviors and interactions of emerging states indicate that the previous norms of an open, global, and liberal international economy are being replaced with their own interests, which Stewart Patrick as well as Andrew Nathan and Andrew Scobell examine in their articles.

During the late 1800s, Latin America economy developed as the production of goods commenced. Latin American became “reintegrated into the world economy in the years after 1870, thanks to the rise in the demand for Latin America’s raw materials by the rapidly industrializing nations of Europe and the United States.” By the reintegration into the world of economy, Latin America started importing finished goods and exporting raw materials. All this was possible by the technology, capital and markets provided by industrialization nation.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

The importance the United States attaches to its trade with the Asia-Pacific region has promoted China's economic development. In 2006, the U.S.-Asia-Pacific trade volume reached 2 trillion U.S. dollars. The U.S. investment in the region amounts to 774 billion U.S. dollars, which has brought tremendous benefits to the countries in the Asia-Pacific region including China.

The Latin American region generally would encounter favorable circumstances and continue into full speed development. These nations had finally felt confident in playing significant roles in the hemisphere and had experienced overall, economic growth, poverty decline, and democracy deepening. () From their grudge against the US for their previous financial crisis Latin America had finally grown to move away from their independence of the US and looked forward to a wider scene of opportunities. These countries soon began increasing their investments, connections and trades with the Chinese and European states. Ultimately making the choice to take opportunities that would associate with fairness and play in their best interest. () While on the other hand the USA would have to decrease their budget for highly expensive training abroad due to their economic crisis that continued and change their approach with Latin America.

The analysis of Latin America is a compelling argument for the exploitation of peripheries in the WST. There are numerous examples of cases where a core or core countries have benefited from situations where a Latin American state has been unfairly treated within the international economic community. It is natural that some countries in South America were more greatly affected by the inequalities of the modern economic system because there are differences in their their economic structures; some countries interacted more closely, more frequently, or under different agreements with core powers compared to other countries. However, a significant proportion of Latin American experienced some form of exploitation under the conditions of the capitalist

However, there is apprehension with the PRC as some Latin American states recognize and have diplomatic relations with the Republic of China (ROC). Currently, there are 12 states that have diplomatic relations in Latin America, with all but Paraguay, being located in Central America and the Caribbean regions. Some states have relations with both the PRC and the ROC, such as Nicaragua and the Republic of Panama. They both recognize the ROC as a separate nation, yet they have political, trade, and some pretty substantial contractual relations with the PRC. The PRC is one of the main members of the Brazil, Russia, India, China, and South Africa (BRICS), which is an association of five major emerging national economies, that have substantial influence in some regional affairs. Additionally, the PRC is one of the 70 permanent observers in the Organization of American States (OAS), and a donor to the Interamerican Investment Bank (IIB). The United States is in no real position to challenge the PRC and their diplomatic relations in Latin America. However, we should actually try and be involved to the greatest extent possible top ensure that the United States’ equities are not challenged and protected whenever

Latin America was colonized by conquistadores who left a trail of disorder behind them, which included powerful and upper-class people ruling over the rest of the population and owning 82 percent of the land. This caused the agriculture to fail to meet the needs of all the people and a lot of food having to be imported. The high cost of these imports negatively impacted the economy. Now, the impoverished people rejected the idea of industrialization because they were too poor to buy any manufactured goods. In 1823, the US made itself the protector of the weak southern companies. Latin America gained money, military, and a government from the US’s help. However, it was questionable if this was advantageous because now they depended on the US and were unsure of their priorities. After World War II, some Latin America countries began to industrialize their land. This helped the economy and raised the standard of living but the middle class was still unable to take a stand against those powerful land-owning people. Further, the military began to rule in some Latin American countries.

In 1999, trade between China and Latin America totaled approximately $8 billion; by 2009, that number had had grown to $130 billion. Earlier this year, a study by the United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC) concluded that by the year 2016, trade between China and Latin America will surpass that between the Eurozone and Latin America, making China Latin America’s second largest trading partner. Most studies of this partnership have focused on: a growing security dilemma, a monumental language barrier, sea disputes, a red scare (the fear that China will spread communism), and Africa–China relations (where China is often referred to as a new imperialist). This paper will explore the motivations and strategies that are shaping China’s engagements in Latin America. I will focus, first, on China’s resource extraction strategies in Latin America and, second, the implications of these strategies for the two regions. The paper will argue that China’s goal in Latin America is first and foremost, to secure sufficient resources to meet the needs of its population and to secure its continuing economic growth, and look at considerable strategies China has to achieve this. It is also clear that China is using its economic, political, and military power to influence other developing countries, especially on sensitive issues like Taiwanese independence. Lastly, both Latin America and China seek to benefit from their relationship, and it is likely

The reason that the United States global governance is on decline is due to the rise of China and Russia’s conscious for policy coordination and investments. China has invested billions of dollars in South America in order to help economic growth in the region. President Xi Jinping of China proposed a $50 billion venture that is predominantly invested for a railway project that would stretch across the continent from Brazils Atlantic coast until Peru’s pacific. In 2015 the Chinese financed more money in Latin

. In the contemporary scheme of things China makes up for roughly 11% of the world’s exports, an amazing feat for a country that practiced an isolation policy and communism only forty years prior. Additionally, China with a large-scale allocation of funds to improve poverty ratings has successfully brought four hundred million people out of poverty, into a lower-middle class. Now, while still competing with Japan for Asian hegemony, China enjoys a great deal more security and prosperity through its transformation from a failing communist state to a wealthy hyper-capitalist state. Through capitalistic economic reforms, an export led economy, and efficient one-party, authoritarian politics China has been able to bounce back from three decades

China is still firmly placed to overtake the world’s largest economy, the US, by the end of decade. This would be a shift in the hegemonic influence over economic affairs not just in the region, but in a global context. When the Chinese economy sneezes, the rest of world’s economies get pneumonia. A loss in the percentage of growth in the Chinese economy reverberates through the rest of the Asia-Pacific region’s economies.

The US market crash of 1929 affected all Western industrialized countries; however, the repercussions sensed by Latin American countries were quite severe, especially throughout the years to come. The establishment of US investments in Latin America and the exports Latin American countries provided to the US were about to take different paths. During this time, the economic development of most Latin American countries was based mostly on agriculture and mining, but the shift towards structural economic and political strategies had a profound consequence on each one of these country’s economies.

How come Latin America and the Caribbean countries reverse the discourse, after decades of opposition to expansive trade ties with the United States? In most cases, the reversal was caused by a mass wave of in national economic policies and development strategies due to the failure of development from the 1960’s and 1970’s, the give way of debt finance due to the Latin American debt crisis of the 1980s, and the pressures originating from the advance of globalization. The work initiated by Mexico leaders would go on to pressure many Caribbean and Latin American countries into wanting to join trade ties after the intiation of the North American Free Trade Agreement.

At its original creation the Washington consensus did not only reflect views from Washington but also included those of Latin America. The life of the consensus can be traced from a Latin American perspective in the way that it evolves economic development models. There were many consensus-style reforms in Latin America as well as the resemblance of the incompatibility between