The American semi-periphery: Latin America

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The American semi-periphery Latin America
dr. Jeney László Senior lecturer jeney_at_caesar.elte
.hu
Economic Geography I. International Business
bachelor study programme (BA) Autumn term
2015/2016. CUB Department of Economic Geography
and Futures Studies
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Similarities and differences between the
Semi-Peripheries
similarity Difference Difference
similarity Latin America Islamic World
Geographical extent long shaped NS (Rio GrandePatagonia) WE (Atlantic OceanCentral Asia)
Ancient times Developed centres Red Indian Empires Inca, MayaToltec, Aztec Egypt, Mesopotamia, Persia, Rome
Contemporary near centre Very closely tied centre N Am centre Eu
language homogeneous Spanish, Portuguese Arab, Turkish and Irani
Religion homogeneous Catholics Muslims
Key industries Dominant product Agricultural product, mineral Oil, natural gas
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Division of America from the viewpoint of
Regional Geography
North America (English America) North America (English America) North America (English America)
Latin America Middle America Mexico
Latin America Middle America Central America
Latin America Middle America The Caribbean
Latin America South America Northern Andes
Latin America South America Brazil
Latin America South America Southern South Am.

• Inner dividing borderlines
• Human Geography State border between USA and
  Mexico (border of North and Latin America)
• Physical Geography Isthmus of Tehuantepec (216
  km) (border of North and Central America)

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Latin American subregions

• 3 stages
• Precolombian period
• Colonization (15th19th centrury)
• Independent states
• Early 19th century political independence
• But 1823 Monroe Doctirne ? increasing
  geopolitical role of USA in the Western
  Hemisphere
• Late 19th centrury USA intervention in the
  affairs of Cuba, Haiti, Dominican Rebublic
• 1990s
• NAFTA strengthening connection with USA
• Not unidirectional growing Latin-based segment
  of the US immigrants ? popular culture (
  restaurants, music)

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Long-term economic history

• 3 stages
• Precolombian period
• Colonization (15th19th centrury)
• Independent states
• Early 19th century political independence
• But 1823 Monroe Doctirne ? increasing
  geopolitical role of USA in the Western
  Hemisphere
• Late 19th centrury USA intervention in the
  affairs of Cuba, Haiti, Dominican Rebublic
• 1990s
• NAFTA strengthening connection with USA
• Not unidirectional growing Latin-based segment
  of the US immigrants ? popular culture (
  restaurants, music)

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Poverty

• Continuously one of the region's main challenges
• Increasing poverty and reduced impact of economic
  development on poverty reduction ? undermines
• Region's economic potential
• Well-being of its population
• 40 million street children
• Often forced to seek work on the street
• Their families can no longer afford to support
  them ? 40 million street children

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Most unequal region in the world

• High inequality deep historical roots
• Since colonial times rooted in exclusionary
  institutions
• Survived different political and economic regimes
• Political systems allow a differentiated access
  for the social groups on the influence in the
  decision making process
• It responds in different ways to the least
  favoured groups that have less political
  representation and capacity of pressure
• Reproduction and transmission through generations
• Today
• Goldman Sachs' BRIC review by 2050 two Latin
  American among the largest economies in the
  world China, US, India, Brazil and Mexico
• Poorest countries Haiti, Nicaragua, Bolivia and
  Honduras

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Recent economic liberalization

• Recent economic liberalization
• Not everyone is equally capable of taking
  advantage of its benefits
• Differences in opportunities based on race,
  ethnicity, rurality and gender
• Those differences have a strong impact on the
  distribution of income, capital and political
  standing.
• Share of the extreme groups of the income
• Richest 10 of the population of Latin America
  earn 48 of the total income (developed
  countries 29)
• Poorest 10 of the population earn only 1.6 of
  the income (developed countries 2.5)
• Highest and lowest inequalities in the region (as
  measured with the Gini index)
• Highest Haiti (59.5), Colombia (58.5), Bolivia
  (58.2), Honduras (55.3), Brazil (55.0), and
  Panama (54.9)
• Lowest Venezuela (43.4), Uruguay (46.4) and
  Costa Rica (47.2)

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Social assistance programs

• Provide money to poor families
• Used as an investment on their children's human
  capital (e.g. regular school attendance and basic
  preventive health care)
• Purpose
• Address the inter-generational transmission of
  poverty
• Foster social inclusion by explicitly targeting
  the poor
• Focusing on children
• Delivering transfers to women
• Changing social accountability relationships
  between beneficiaries, service providers and
  governments
• Increased school enrolment and attendance and
  improvements in children's health conditions
• Around 110 million benefited people
• Relatively cheap, costing around 0.5 of their GDP

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Major trade blocs (or agreements)

• Mercosur/Mercosul Arg, Braz, Para, Uru founding
  members
• Andean Community of Nations (CAN) Andes
• Union of South American Nations composed of the
  integrated Mercosur and (CAN)
• G3 Free Trade Agreement
• Central America Free Trade Agreement (CAFTA)
  agreement with Dominican Republic too (DRCAFTA)
• Caribbean Community (CARICOM)
• But major reconfigurations along opposing
  approaches to integration and trade
• Venezuela officially withdrawn from both the CAN
  and G3 and it is formally admitted into the
  Mercosur (pending ratification from the
  Paraguayan legislature)
• President-elect of Ecuador has manifested his
  intentions of following the same path

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Free Trade Agreement (FTA) with the USA

• This bloc nominally opposes any FTA with the USA
• Uruguay manifested its intention otherwise
• Chile
• Already signed an FTA with Canada
• Along with Peru, Colombia and Mexico are the only
  4 Latin American nations that have an FTA with
  the USA the latter being a member of the North
  American Free Trade Agreement (NAFTA)

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Major tourist attractions popular places for
international visitors

• Native American cultural heritage
• Well preserved ruins of Mayan city-states
  (Cancún)
• Machu Picchu, Chichen Itza, Cartagena de Indias
  and Cuzco
• Natural heritage
• Galápagos Islands, Salar de Uyuni, Iguazu Falls,
  Poás Volcano National Park and Patagonia
• Coastal resorts
• Pacific Cabo San Lucas, Mazatlán and Acapulco
• Atlantic Copacabana
• Caribbean Yucatán Peninsula, Santo Domingo and
  Varadero
• Cities
• Rio de Janeiro, São Paulo, Mexico City, Quito,
  Bogotá, Buenos Aires, Lima, Havana

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Mexico receives the largest number of
international tourists

• 2008 over 22 mn visitors (1990 17 mn)
• Millions more than anywhere else in Latin America
• Mexican, Latin and North American, European and
  Asian visitors
• Cities Gang violence N Mex drug
  trafficing-realted crime ? not slowed the influx
  of international tourism
• Major and growing source of income
• Regional leader in developing a tourism industry
• Separate ministry of tourism with dedicated funds

Income from tourism key to the economy of
several Latin American countries
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Question of tropical rain forests (TRFs)
Conserve TRFs Use TRFs resources
Sink for carbon dioxide (burning vegetation ? add CO2), source of O2 (where humans live) Incomplete data for CO2 data (unreported surfaces). Ocean exchanges more significant
Tremendous biodiversity in the plant life in TRF ecosystems No evidence partial TRF clearing changes the biodiversity of the Earth
Medical treatments and cures from TRF products Treatments and cures from many sources synthetically generated in laboratories
Right to destroy domestic resources (but corrupt governments, wasting other resources) Right to use their natural resources for their own best interest. Wealthier countries did the same
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Question of tropical rain forests
Conserve TRFs Use TRFs resources
Indigenous tribes local tribes displaced ? bloody conflicts Need to push the frontiers. Productive members of society have the right to use the land
Incresing tourism revenue potential Right to determine how they earn revenue from their resources
Natural habitat for species found only in this biome. Removing of TRF ? eliminate habitat and permanent loss of species ? alter ecological balance Good source of income in a debt challenged country is more important than the conservation of a bird or a tree
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Mexico

• By far the most economically developed of the
  countries of Middle America
• More than 85 of Middle America total GNI
• GNI per capita one of the highest in Latin
  America and WB upper-middle-income group
• Diversified economy, significatnt sectors
• Commercial farming
• Manufacturing (maquila)
• Tourism and related services
• Oil and gas industrues

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