Despite negative press by some economists, Latin American economies grew an average of 5.5 percent between 2003 and 2008 with single-digit inflation rates. Latin America was once called the “development of underdevelopment by economist Andre Gunder Frank.
Countries in the region continued to grow during the world’s collective financial crisis between 2008 and 2009, including more jobs and a better quality of life for most of the middle class, according to a recent Voxxi.com article.
Five important events happened in Latin America this year, resulting in new “poles of power which will allow Latin American countries to step onto the international stage,” according to the article.
Size of Brazil’s Economy
Brazil has become the sixth largest economy in the world, and the largest in Latin America. Brazil’s President Dilma Rousseff announced new protectionist policies and stimulus packages to guard the country’s economy from the European financial crisis.
Repsol’s Takeover is Chevron’s gain
Back in April of this year, Argentine President Cristina Fernandez took over 51 percent of the shares of YPF — the Argentine oil company — that was controlled by Spain’s Repsol, in an attempt to recover national sovereignty over its own hydrocarbon resources under allegations of a $3 billion deficit in gas and petroleum imports.
Venezuela strengthens Mercosur
After years of opposition from Mercosur founding member Paraguay, finally in 2012 Venezuela was able to join the South American regional trade organization. The annexation of Venezuela into the pact has consequences beyond the mere trading activity.
Four Latin American Leaders Meet
Argentina’s Cristina Fernandez, Venezuela’s Hugo Chávez, Uruguay’s Jose Mujica and the host Dilma Rousseff from Brazil officially met during a special summit in October. The group is powerful. Venezuela has the world’s largest petroleum reserves, Brazil is one of the largest food producers and has the largest oil company in Latin America, and Argentina’s agricultural exports and shale deposits makes the group an international force.
Mexico Open for Business
Mexico’s President Enrique Pena Nieto said in November that government-owned concessions including the energy sector could be available to foreign investors.
