Saturday 19 June 2021

The New South America

What if Mercosur and the Pacific Alliance joined forces?

Latin America is taking giant leaps towards becoming a global superpower. Treasury Ministers Rodrigo Valdés and Nicolás Dujovne from Chile and Argentina respectively highlighted the importance of advancing towards the process of regional integration in order to the strengthen both economies.

The most important topic, they denoted, is how both nations will continue to lead its own international alliance within Latin America. Chile leads the Pacific Alliance, the group of nations where Colombia, Peru, and Mexico are members of, while Argentina leads Mercosur, the alliance that hosts Brazil, Uruguay, and Paraguay.

- Advertisement -

The main argument for a macro-integration inside Latin America resides in the substantial expansion of its middle class and the regional consumer market. The awakening of South American governments towards the importance of public policies oriented to improve the work and quality of life through public spending have reduced overall poverty in the region.

A massive trend of urbanization aims to decrease the strong correlation that the southern American hemisphere has with the primary sector. As a result, the regional GINI Index has been reduced from 0.547 in 2002 to 0.496 in 2012 and urban unemployment averages 6.05%.

The second argument in favor of the regional integration has to do with the abundant reserves of strategic minerals. Global trends indicate that lithium will be a central element of the future economy given that crude is being substituted; the rise of electric cars is undeniable. Other precious metals can be found in the region such as bauxite, mine copper, refined copper, gold, silver, iron, molybdenum, and zinc.

Alongside with precious metals, Latin America concentrates 52% of the global production of soy, 16% of the corn and meat production, and 11% of the world’s milk. South America possesses 33% of the global reserves of fresh water, a phenomenon that is closely tied to the fact that 17 countries in the territory are considered to be megadiverse.

- Advertisement -

Nevertheless, challenges also surge from the idea of a regional alliance. The high dependency on local extraction and outsourcing of logistic processes has made the region uncompetitive in its exports sector. Latin America only accounts for 5-6% of the global exports as only 1% of the total companies in the region are aimed at said market.

The biggest challenge that a unified South America would face is the lack of insertion in the knowledge economy. Latin America and the Caribbean concentrate only a little more than 2% of the global patents presented worldwide. This phenomenon is explained by an average investment of 0.84% of the summed GDP for Investigation and Development.

Brazil destines only 1.21% of its GDP towards science, which hides the fact that most nations in the area invest less than 0.5% in intellectual development.

Latin American challenges do not outweigh its potential, but these points are key for an efficient generational and open transition towards a more equal and sustainable future.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Which countries could follow El Salvador by making it legal tender?

Q24N - El Salvador may be the first country to adopt...

Peru revises pandemic death toll, now worst in the world per capita

Q24N (Reuters) Peru on Monday almost tripled its official COVID-19 death...

MOST READ

Fifth tropical wave precipitation will be heavier in the north of the country

QCOSTARICA - For this Wednesday, the arrival of the fifth tropical wave of the season is expected, thus reinforcing the rainy activity mainly to...

Lack of space on Racsa’s hard drive paralyzed immigration consultation at the airport this Monday

RICO's DIGEST - We've all had this happen, your computer's hard drive is full and your computer crashes. But we are not the Radiográfica...

Construction companies that paid alleged bribes would be disqualified for ten years

QCOSTARICA - If it is proven in a final judgment that they did pay bribes to Conavi officials, several companies could be disqualified from...

Informants assisted OIJ in corruption investigations, says the minister

QCOSTARICA - The investigation into alleged bribery of public officials in exchange for contracts for road works, received help from informants within the Consejo...

Vaccination commission endorses J & J vaccine, says no to Sinovac

QCOSTARICA - The Comisión Nacional de Vacunación y Epidemiología (CNVE)  - National Vaccination and Epidemiology Commission - endorsed the use of Johnson and Johnson...

The Best Sports To Play On A Beach

Costa Rica has some of the best beaches in the world. The coastline is blessed with golden sand, beautiful palm trees, and perfect blue...

American woman found lifeless in hotel bathroom in Sabana

QCOSTARICA - A sad discovery occurred this Thursday morning in a hotel located in La Sabana, in San José, the lifeless body of a...

Today’s Vehicle Restriction June 17: 7 & 8 CANNOT circulate

Today, Thursday, June 17, vehicles with plates ending 7 & 8 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Heavy downpours generated the first phreatic eruption of this year at the Turrialba volcano

QCOSTARICA - Several residents of La Pastora, La Central and Monte Calas, in the vicinity of the Turrialba volcano, heard a loud rumbling early...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.