The Economic Situation Of Latin America

The South America has evolved as the one of the most dynamic region of the world so much development taking place. In 2005 Latin American economies managed to grow at average of 5.5% while inflation is in single digit which shows that it has created the economic prerequisites to deal with the aforementioned problems.

This sharp drop in exports to the United States led to a large drop in industrial production. Mexico’s high economic dependence on the United States made the external demand shock particularly severe. Between the third quarter of 2008 and the second quarter of 2009, 700,000 jobs were lost, 260,000 of them in manufacturing, which negatively affected the flow of remittances to Mexico. Remittance inflows, which are largely from the United States, are Mexico’s second-highest source of foreign currency after oil. The country’s fiscal position also weakened because oil revenues fell, partly due to the drop in international energy prices brought about by the global recession as well as the decline in domestic oil production. (Sidaoui, Ramos-Francia and Cuadra, 2010) Mexico’s gross domestic product (GDP) contracted by 6.6% in 2009, the sharpest decline of any Latin American economy.

Throughout the 1800s Latin America was trying to catch up with the rest of the Western world, progressing with increased exports, manufacturing, and industrialization. These advances did not stop the internal problems of most Latin nations. With these changes, as in the rest of the world, there was a growth in urban populations and in the middle class, adding another layer in the social structure; which in turn is just another group that will vie for power, and benefits from the government (180-90). This period is characterized with a large amount of wealth being concentrated in the hands of a few, which on paper shows great economic progress in the form of a GDP number, but there was still great wealth disparity. The switch, in Latin America, from conservatives in the early part of the 1800s, to liberals for the latter half, eventually turned to authoritarian governance; the democratic goals liberals set out to achieve were trashed for power and economic benefits, in keeping with previous generations (191).

Some background facts about Mexico: The place of advanced Amerindian civilizations, Mexico came under Spanish rule for three centuries before achieving independence early in the 19th century. A devaluation of the peso in late 1994 threw Mexico into economic turmoil, triggering the worst recession in over half a century. The nation continues to make an impressive recovery. Ongoing economic and social concerns include low real wages, underemployment for a large segment of the population, inequitable income

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.

Between the 1940’s and the 1970’s, Mexico’s economy had been flourishing. Their inflation was at a good range and their debt was low. With the discovery of petroleum, Mexico

The Mexican Revolution was one of the most convoluted and bloody battle, in which 900,000 people died. However, the revolution began in 20th November 1910 to put an end to the dictatorship of Porfirio Diaz Mori, it began due to the call to arms. The time when Porfirio was in charge of the whole country was known as, Porfiriato. In this time period, he increased the numbers of rurales, so he can benefit from them wisely by making them patrol highways and quells. “Porfirio Diaz also supported a country wide system of jefes politicos, or local political bosses, who were loyal to him. The jefes politicos used threats, promises, and bullying to make sure that the common people did what the government wanted them to do”. The economy of mexico took a great leap during the time period of Porfiriato, even with the help of the brilliant expert financial minister named Jose Yves Limantour, still Diaz don’t really consider the downfall of economy, but he recognizes it very well. “He also ordered a crackdown on smuggling, which cost Mexico huge sums in lost

The new money that was obtained by rising foreign trade and investments fueled the whole system. Railways spanned the country, mines and export croups flourished. The cities acquired paved streets, electric light, trams and drains. Even though other Latin American countries also were stepping up and putting in these new improvements it was an especially big deal for Mexico because the money was going into the rich elite and it also bolstered the national government.

The Latin American countries have been subject to many changes ever since the American continent was discovered. These changes have mainly affected the economy, culture and power changes these countries have suffered throughout the years. According to Jon Charles Chasteen on his book “Born in Blood & Fire” During the twentieth century, there were three main events that changed the course of Latin American countries and their economies. These three events were, the emergence of nationalism, the end of World War II, and the Cuban revolution. However, in my point of view, the event that created more impact in Latin America and the future of these countries has been Cuban Revolution. It is not a secret that the Cuban Revolution created a big impact to the country’s future, unfortunately this revolution not only changed Cuba, but also the entire region of Latin America.

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.

The loss of material and economic productivity in the war for Independence had long-lasting economic consequences on Mexico. It severely damaged agriculture, commerce, industry, and mining sectors. The most severe blow to the Mexican economy was the loss of capital; money either fled the country or was withdrawn from circulation . After the war, Mexico fell into 50 years of economic depression. The speedy rehabilitation of the mining sector would have aided national recovery greatly, but both financial and technical problems hindered its recovery until the 1880s. Because Mexico lagged behind the rest of the world for half a century, great economic advances were needed towards the turn of the century.

Latin America is important to the United States economy and politics, but why should we care about it? The United States has supported several authoritarian regimes that have swiped through Latin American countries. The United States’ main goal regarding Latin American politics is to fight and prevent communism from taking over the region. Additionally, Latin American countries contribute to the American economy through its numerous resources and exports.

So, to cease, I would like one to ask himself these questions. How is Venezuela doing? Are they running successfully under a socialist leader? Well, to fill one in, they are actually far off from well. Almost their entire population is struggling to survive. Their food pantries are empty along with everything else. “Venezuela is facing the most serious economic crisis of any country in Latin America. Inflation is expected to top 400% this year and electricity companies are already failing to keep the lights on in many parts of the country. The country’s largest beer company has already shut down….”(Flannery, Nathaniel P). As one can see, socialism displays more than a little problem. Socialism is simply a trap to redistribute wealth.

The alleged "lost decade" (the 1980s) in Latin America was portrayed by monstrous outside obligation and genuine macroeconomic issues—including high expansion

Argentina is considered to be one of the wealthiest countries in Latin America with a Gross Domestic Product of about 540 billion in 2014, according to the World Bank. However, it hasn’t always been that way. Argentina has seen many periods of economic and political volatility ever since its independence from the Spanish Empire in 1816. From commodity based export booms in the 19th century to high inflation and debt defaults in the 20th century, Argentina is a country with a grim and daunting economic future. Many scholars have predicted that this is the evident fate of the Argentinean economy and that there is no way of digging themselves out of it. Argentina’s political economic history raises the concern of whether or not it is even