South America Executive Summary

This essay, firstly, will look at to what extent physical geography has affected Latin America in terms of economic growth. Secondly, it will focus on the other possible factors which have affected its economic growth. There has been much debate over the cause with some stating that geography is the culprit while others blame more social aspects such as politics and political instability, inequality, and educational attainment. This essay will attempt to evaluate to what extent these claims are true.

Scholars have referred to the South as “America with a difference”. This difference has tried to be defined by different historians, and it has produced various strains of the American South history. Therefore, the south has drawn various historians, novelists, and poets in the quest to define the central theme of the southern history. This has largely interested many scholars as the south was known to be settled by a different Englishman, its experience of poverty since it was a nation that only knew abundance and its loss in the civil war as it was known as a nation that always had success (Gerster and Cords 11). Some writers have tried to define the difference of southern America regarding its passion for agriculture and slavery.

magnitude of these risks, this paper advocates for a more proactive solution. Active investing in

Cernauskas, D., & Tarantino, A. (2011). Essentials of Risk Management in Finance. Hoboken: John Wiley & Sons, Inc.

The Americas, now known as Latin America, has gone through many changes in its history, from being conquered by Spain and Portugal, to the people fighting for its independence and finally, making a living as newly independent countries. From the years 1850 to the end of the 19th century, each region had influences, specifically those that dealt with the after effects colonial rule had on the land. Nations that made up Latin America began modifying different portions in their government in attempts to benefit the majority of the people. More or so, they accomplished this goal, each with their own challenges. Evidently, changes within the social, political and economic systems were focused on external factors.

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.

Latin America is doing both positive and negative changes to their economy. In my opinion, I think that latin is making more positive changes than negative changes. I gathered many of my facts and supporting evidence from the textbook Geography and History of the World. A lot of the information was located in section one of chapter ten.

There are multiple changes regions go through that shape the way run/do things. Latin America is no different than any other place in this aspect. Sometimes effect can be both positive and negative. Neoliberalism, the Central American Common Market (CACM), and globalization have made an impact on Latin America, because one way or another Latin America has learned from effects of them.

A sovereign debt crisis is basically a government debt, also known as a national debt; it is money or credit owed by any level of government. Government deficits refer to the difference between government receipts and spending in single year. Debt of a sovereign government is called sovereign debt, which is an indirect debt of the taxpayers. This debt can be categorized as internal debt, owed to lenders within the country and external debt owed to foreign lenders. Governments usually barrow by issuing securities, government bonds and bills, rarely do they barrow directly from supranational institutions. Moreover, Government debt considers all government liabilities, including future pension payments for goods and services that the government

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.

Throughout the early to mid start of the twenty-first century Latin America had experienced what was believed to be its largest boom in terms of economic growth. Forecasters were mainly looking at the nation of Brasil to demonstrate this boom through the leadership of then president Luiz Inácio "Lula" da Silva. Brasil was predicted to be one of the global leaders in terms of developing nations in the modern era. In fact it was the only Latin American country inducted into the BRICS ( Brasil, Russia, India, China, South Africa) movement. However one issue arose to the nation of Brasil and other Latin American countries that would haunt them in the future. The artificial rise in the prices of commodities minerals, oil and grains brought about

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.

Latin American economy has been impacted through the first world countries such as the United States & China. Latin America receives imports and exports from first world countries. The impact of industrialization on Latin American countries is significant. First world countries industrialization caused a strong demand in Latin American countries. There are downsides for Latin American countries such as competition from which good is more efficient from what first world country its coming from. Throughout, recent years these imports into and out of Latin America impacted countries positively and negatively.

As it known the debt crisis of the 1980s is the most traumatic economic event in Latin America’s economic history. During the “lost decade”, the GPA fell from 112% to 98% of the world average, and from 34% to 26% of the developed countries average. Development countries were giving loans to Latin American countries to enable them to straighten their economies. However, they have had difficulty repaying their debt.

In 1997, the Asian Financial Crisis spread rapidly all over the Asia and affected almost all the economies in the world. Prior to the Asian Financial Crisis, the Asian countries such as Thailand, Malaysia, South Korea, Indonesia, Hong Kong and Singapore experienced a remarkable growth in the economy that was considered the highest in the world. These Asian economies increased by a notable proportion of 6 to 10 percent annually in the GDP. However, what had been regarded as an Asian miracle seemed to crumple down rapidly 1997 when these Asian countries were faced with a severe financial crisis in their local stock and currency