Population growth in Latin America
Introduction
After the golden age with exponential growth in Europe and Asia, good winds feel in Latin America, since in such a changing world some countries are in recession, others with a reserved prognosis and some more slowing down at alarming levels. According to ECLAC, Economic Commission for Latin America and the Caribbean Latin America will have a growth as a block of 1.7 percent in 2019 highlighting the South American country of Bolivia and the Central American country of the Dominican Republic as those of greater growth in the continent, even surpassing countries like the US. UU. and Canada.
Thanks to this, the annual increase in GDP, gross domestic product, will be reflected for most Latin countries as a cyclic chain, that is, all the production of goods or services represents more income, greater consumption and greater acquisition andpeople through employment mainly.
And this economic boom is much more relevant, since the IMF international monetary fund that in the coming years Latin America will have a constant rhythm of 3.5 percent annual, opening certain doubts to my person and I make two primary issues: is the growth we live today in Latin America real? And if so, what is the price we are paying?
Developing
This scenario in Latin America occurred in many episodes, especially in the decades of the sixties and seventies of the twentieth century, which are remembered as high growth periods, but in those days it was the Latin American growth slower than the world average. In the decade of the 199. More recently, the external atmosphere is positive for emerging markets, but for many Latin American countries the big problem has been how to restart, or in many cases begin, a sustained growth process.
Now that we have seen examples in the history of growth, it is necessary to know what is the price we are paying. Well, currently the models of consumption and industrial production use an exploitation of raw materials above the environmental consequences of the same, adding to the increase of the world population in recent centuries which has increased the demand for food and goods and theLack of authority of political power by taking global draft measures to address transcendental environmental problems;They have caused a great lack of sensitivity and knowledge about the pernicious consequences of the degradation of the environment around us.
Terrible situation that is seen coming, taking into consideration that most of our exports are non -renewable raw materials such as minerals and hydrocarbons which bring great contamination primarily from soil and earth. Without going far, in the neighboring country of Bolivia there is a growth of 4.3 percent for this year based on its most important resource gas.
Bringing with it the deforestation of large -scale forests or Peru which was drastically harmed by the fall in mineral prices in the international market in the last 5 years, that is what happens when a nation is rooted in a type of matterpremium bringing consequences on income for its citizens.
Stability, is the ideal of every nation;But these must go hand in hand with economic growth. This reality is not shared by some members of Mercosur, a common market, especially in Argentina, where its economy has been impacted by the fall in raw material prices, exit of more than a hundred foreign companies and inflationwill reach 36 percent this year. The last governments tried to reverse the situation through public policies, however there is no prompt solution.
Similar situation is the one that Venezuela lives with the worst economic crisis of the South Americans. Hyperinflation, problems with the exchange rate and with the balance of payments, loss of international reserves and product shortage are the main problems that their nation faces. Even international media such as the British magazine The Economist described Venezuela as the country that has the worst managed economy in the world, even with the largest oil reserves and the highest debts to pay.
In these last two countries we appreciate large reserves of raw materials which do not help out of their inflation and on the contrary they exploit large steps as a desperate measure to get out of this situation. That said, it is impossible not to feel the indirect clash of the crisis for other Latin countries. Now as a prompt and viable solution we see important changes in the business / sector structure, highlighting the productive activities of tradable goods with intensive use of natural resources.
In the configuration of this new productive structure, the incidence of the main structural reforms: commercial opening, which incorporates a new logic to markets, privatizations and regulations, which make up a new scenario for agents and public policies, the liberalization of the capital market, which allows the massive arrival of capital, to a large extent, in the form of foreign direct investment.
Another highlight gives a modest increase in the total productivity of the factors and raw material that expresses the low role played by the incorporation of new technologies in economic growth, given the technological lag of the region, as well as the modest advances achieved inthe productivity of work, more result of the economic cycle and working conditions, than of the improvement in the qualification of it;Therefore, a very unequal behavior of the sectors and companies, according to their degree of presence in the markets and their ability to adapt to the new internal and external conditions will improve the expected growth for Latin countries.
More result of the economic cycle and working conditions, than of the improvement in the qualification of it;Therefore, a very unequal behavior of the sectors and companies, according to their degree of presence in the markets and their ability to adapt to the new internal and external conditions will improve the expected growth for Latin countries.
conclusion
So, although Latin America entered a dynamic cycle, since it has left the critical situation of the past. Many of their economies are in a stronger position, politically are more stable and have greater international reserves, which gives them a security mattress. But it must be recognized that some countries do not do it along and in the long term will result in a stagnation of economies if it continues to depend melely on raw materials instead of the production of final goods.
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