Subject (Course): Economy and Integration of Latin America and the Caribbean. Syllabus:
- Introduction to the Latin America Economy.
- Economic Profile of Latin America
- Effects of the global crisis in Latin America and the Caribbean.
- Scenario after the crisis
- Key challenges: innovation and technological change.
- International Trade of Latin America
- Economic relations between China and Latin America
- Growing influence of China and other emerging economies.
- Regional Integration in Latin America and the Caribbean.
- Analysis of the Economic Survey of Latin America and the Caribbean published by ECLAC
The aims of the subject “Latin American Economy” are:
- To analyse the evolution of the Latin American Economy
- To assess the effects of the global crisis in the region
- To analyse the intra-Latin American trade
- To explore trade relations between China and Latin American countries
- To evaluate the degree of Latin American economic integration
Sample of the subject - Latin American Economy:
Subject Description (Economy and Integration of Latin America).
- Regional deceleration. Latin America economic growth rate: 1.1%
- Mexico and Central America: 2,7%
- Causes: global crisis, reduction world trade, and decline in export commodity prices (agricultural, energy, crude oil, and raw materials)
- Volatility of financial markets
- Diminishing of investment
- Unemployment rate: 6%
- After six years of uninterrupted growth, the gross domestic product of Latin America and the Caribbean fall by 1.8% and per capita GDP by close to 2.9%.
- The global crisis hit the region hard at the end of 2008 and early
2009, taking a toll on all of its countries. However, the recuperation began to take shape in the second quarter and became more widespread in the second half of the year.
- The economic slowdown cut into labour demand, and the unemployment rate is esteemed to rise to 8.3% for the region overall, while the new jobs that have been created are of poorer quality.
- The effects of the crisis were channelled through the real sector of the economies, damaging what had been the main engines of regional growth.
- Exports plunged, while the contraction of economic activity worldwide, together with the drop in International Trade flows, lowered commodity prices, which hurt the terms of international trade in Latin America.
- At the same time, revenue from remittances and tourism fell, with Mexico and countries of Central America and the Caribbean suffering the most, and foreign direct investment
plummeted by 37%.
- Growth is esteemed to be slower in some of the most open economies that have a less diversified portfolio of trade partners and a heavier reliance on manufacturing.
- The same can be said of the Caribbean economies, some of which are facing complex financial and exchange-rate situations.
- However, it remains to be seen whether or not the developed economies will be able to sustain growth once the copious stimulus packages implemented by the United States and Europe are withdrawn.
- The drop in foreign investment was generalised in all the subregions in Latin America and the Caribbean.
- Foreign Direct Investment flows towards South America diminished 40%, while those to the United Mexican States and the Caribbean Basin fell 45%.
- Brazil continued to be the main recipient of foreign direct investment (FDI), followed by
Chile, Mexico, the Republic of Colombia and Argentina.
- Among the medium-sized and large economies in Latin America, Chile is the economy with the highest proportion of foreign direct investment concerning its gross domestic product (8%).
- As in the past, the services sector received the most amount of foreign direct investment, while the primary sector (agriculture, mining, and hydrocarbons) experienced a relative drop. The United States continued to be the main investor in the region, followed by Spain and Canada.
Source: the Economic Commission for Latin America and the Caribbean.