South America: the two faces of growth.
Latin America is again under the spotlight. Interest rates low and high prices of raw materials maintain growth rates of Asian type. Capital flows and the continent has recorded three consecutive years of growth, not seen for half a century. However, these impressive results mask a social and political context highly awkward with persistent poverty and strengthening the popular appeal for anti-globalization. Look closely Asia who forges close ties with the South American continent. Ch
ina in particular, absorbing large amounts of soy, iron, copper, oil and gas diversify its sources of raw materials which supports its growth. South America, for its part, by exporting massive wealth is flooded with liquidity. So far so good, but this new economic deserves attention because it highlights the relationship unbalanced.Indeed, China with an eye on commodities investing in infrastructure for their extraction. It weakens and the local industrial development by directing production to the primary sector and enhance chances for his essential industrial production. What will become the South American production structure in the years to come? Brazil for example, most industrialized countries in the region, began to be seriously challenged in areas such as automotive and civil aviation. The continued expansion of China is, moreover, a real danger in terms of relocation. Mexico, has already paid the price with the departure of 300 factories to China where labor is 4 times less ex
where labor is 4 times less expensive. The timid participation in world trade in South America (1.8% of world GNP) compared to the Asian giant (eight times) makes these risks more présents.Bien that these trends are at the moment discernible filigrane that they speak volumes about the issues that the South American continent will face in the medium term.The weak industrial specialization of the continent could face shattered the Asian massive.Face this danger, the South Americans in their interest to direct their capital to the strengthening of industrial production in the dynamics of progress, creation of jobs and competitiveness of existing enterprises. Westerners have, at this level, a crucial role to play in providing technical assistance important to the success of this orientation. Business and missions so ... Stay tuned!