Economics of Latin Economics of Latin AmericaAmerica

Panama CanalPanama Canal Panama Canal is a Panama Canal is a

system of locks that system of locks that shortens the travel time shortens the travel time and distance from the and distance from the Pacific Ocean to the Pacific Ocean to the Atlantic OceanAtlantic Ocean

Panama Canal is an Panama Canal is an economic chokepoint in economic chokepoint in Latin America.Latin America.

Panama Canal VideoPanama Canal Video

OPECOPEC

Organization of Petroleum Exporting Organization of Petroleum Exporting CountriesCountries

Venezuela is a memberVenezuela is a member

Money from high oil prices has Money from high oil prices has allowed them to purchase warshipsallowed them to purchase warships

Venezuela Venezuela Check out this article and watch the clip: Check out this article and watch the clip: http://news.bbc.co.uk/2/hi/americas/7628899.stmhttp://news.bbc.co.uk/2/hi/americas/7628899.stm

Questions: Questions:

1. What are the ships going to do? 1. What are the ships going to do?

2. What implications does this have for the US? 2. What implications does this have for the US?

Natural ResourcesNatural Resources

Minerals:Minerals:gold gold ironironcoppercoppersilversilvernickelnickel

Natural ResourcesNatural Resources

Agriculture:Agriculture:good climategood climatefertile soilfertile soil

Colonial Influences in the Colonial Influences in the CaribbeanCaribbean

Spanish:Spanish:Established sugar plantations Established sugar plantations Indians and Africans:Indians and Africans:Used as forced laborUsed as forced labor

Cash CropsCash CropsCrops grown for direct sale, Crops grown for direct sale,

not for use in the regionnot for use in the regionExamples: sugar, bananas, Examples: sugar, bananas,

citrus fruits, coffeecitrus fruits, coffeeBenefit land owners, not Benefit land owners, not

workersworkers

Economic Growth after Economic Growth after ColonialismColonialism

Caribbean island resorts Caribbean island resorts Generates incomeGenerates income Provides jobsProvides jobs

NAFTANAFTA North American Free Trade North American Free Trade

AgreementAgreement Important trade agreement Important trade agreement

creating a huge zone of creating a huge zone of cooperation on trade and cooperation on trade and economic issues in North Americaeconomic issues in North America

Mexico trying to reduce poverty Mexico trying to reduce poverty and increase industrializationand increase industrialization

MaquiladorasMaquiladoras Factories in Mexico used to Factories in Mexico used to

assemble imported materials into assemble imported materials into finished products and export them finished products and export them mostly back to the USmostly back to the US

Located mainly along northern Located mainly along northern border of Mexicoborder of Mexico

Examples of goods-electronic Examples of goods-electronic equipment, clothing, furnitureequipment, clothing, furniture

MaquiladorasMaquiladoras

Where people liveWhere people live

Central America-agriculture still Central America-agriculture still importantimportant

Caribbean islands-tourism Caribbean islands-tourism importantimportant

Would these jobs be found in Would these jobs be found in urban or rural areas?urban or rural areas?

Informal EconomyInformal Economy jobs found in the tourism industry jobs found in the tourism industry

that do not include benefits or that do not include benefits or protection of workersprotection of workers

FTAAFTAA Free Trade Area of the AmericasFree Trade Area of the Americas Offers greater trading Offers greater trading

opportunities, world markets and opportunities, world markets and economic growth for member economic growth for member countriescountries

To include all countries of North To include all countries of North and South America except Cubaand South America except Cuba

Designed to expand NAFTADesigned to expand NAFTA

MercosurMercosur

Economic common market that Economic common market that began operating in the southern began operating in the southern cone of South America in 1995cone of South America in 1995

GoalsGoals—to make members’ —to make members’ economies more stable, economies more stable, – increase trade in the region, increase trade in the region, – to use some money to improve the most to use some money to improve the most

needyneedy

Greatest South American success Greatest South American success StoryStory

The country of Chile:The country of Chile:– Participation in global tradeParticipation in global trade– Abundant Natural ResourcesAbundant Natural Resources

CorruptionCorruption

CorruptionCorruption - Acting dishonestly or - Acting dishonestly or immorally.immorally.

A history of corruption is one reason A history of corruption is one reason most Latin American countries are most Latin American countries are still developing economically.still developing economically.