Economy of Latin America

1
Economy of Latin America

• Mexico
• Major economic growth from NAFTA
• Maquiladoras border factories import raw
  materials, export finished products
• Cash crops those produced to sell on market
• Large oil deposits
• Privatization the selling of government owned
  businesses to private companies

2
Central America

• Dependent upon primary activities
• Either subsistence farming or plantations
• Coffee, Cotton, Bananas (Banana Republics)
• Panama Canal
• Provides large source of income for Panama
• Cuba, communist, embargo by U.S.
• Block all goods

3
South America

• Colombia
• Recently discovered oil
• Coca production (cocaine), U.S. spends millions
  to destroy
• Venezuela
• Large oil deposits, only Non-Middle East OPEC
  country
• Mixed Economy (market command)

4
South America

• Chile
• Large producer of copper
• Healthy economy, due to trade w/ U.S. Japan
• Provides year round supply of produce

5
South America

• Argentina
• Pampas, source of beef, wheat, Veg oils
• Gauchos, Argentine cowboys
• Was strong economy in L.A., but could not pay
  loans (defaulted in 2001)
• Hurt exports and investments
• Brazil
• Many natural resources, but undeveloped
• Potential to be economic power
• Free of Foreign Oil
• Hydroelectricity

6
Issues

• Income Gap
• Gap between rich and poor No Middle Class
• Top 10 control 48 of wealth, bottom 10 control
  1.6
• Integrating displaced indigenous (native) pop.
• Bolivia elected first native Pres. (Evo Morales)
• Debt a diverse economy
• Too dependent on primary activities
• Need to develop industrial service sectors
• How?