Glocalization: the hybrid of the XXI century?

Friday, March 09, 2007

What is the future of South America...?

This is just my opinion I gave on this matter...

I would first distinguish the differnt countries in South America. Imagine Brasil is the size of Europe and Argentina 5 times bigger than Germany. Would you be able to compare or generalise Estonia with Bulgaria or Czeq Republic with Lithuania?

Natural resources"...Mercosur is an area rich in natural resources, including; zinc, tin, copper, iron ore, manganese, bauxite, gold, nickel, platinum, and uranium. Argentina and Brazil also have petroleum..." (from

Another thing to take into consideration is the the growth of Argentine GDP in chinese pace. For 4 years Argentina has been growing at between 8 and 9 percent. Human resources is huge and with literacy's rate similar to European rates.

Mercosur and EU negotiations for a free trade association (similar to what Chile already has signed with the EU) will represent a huge opportunity for Europeans companies to invest in infrastructure and services. On the other hand will represent a huge benefit for MERCOSUR (Argentina, Brasil, Paraguuay, Uruguay and Venezuela) commodities exports.

MERCOSUR, the economic integration process of southern economies of south america, it also represents a benefit for investors since they go there not only to produce and export back to Europe, but for the internal domestic or within Mercosur (scale production). The example is the automobile industry producing in Argentina or Brasil and exporting to MERCOSUR and other countries such as Mexico, Chile and Venezuela.

Another potential of South America is its "sustainable tourism". Its incredible growth will also benefit and push the development of the airline industry. One very good example of tremendous growth is the airline LAN CHILE which is one of the airline which grew the most and in the fastest period of time. More airlines are to come and with them a lot of investment in infrastructre: not only airports but also ports (for instance NOBLE is constructing one in Argentina to export SOJA beans) and higways, water ways etc.

Soja is also a keyword when we talk about the potential of South America. Argentina has gained the third position after USA and Brasil as the biggest world exporter of soga oil. This will be the future source of energy as well. By the way we have seen today, Friday 9th March 2007, President Bush visiting Lula in Brasil, agreeing on new natural fuel production...

... If you think how much these economies are growing and consider that the number of inhabitants is much less compare with India and China, you could draw the conlcusion than not only growth will take place in South America but also economic development.

Now the only pre requisite is the strengthening of the democracy and free market economies. Let alone: economic -and even better political- integration such as the model EU.



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