If Central America wants to get out of the middle-income trap it would do well to follow Uruguay’s lead and develop a focused, comprehensive industrial policy that builds on the region’s trade advantages.
In an ongoing series examining the consequences of President Trump’s policies on the region, Kevin Gallagher looks at what this administration’s trade policies will mean for China’s influence in Latin America.
In a new series, different authors will look at President Trump’s promises and proposed policies that will affect Latin America and Hispanics: their possibility of being adopted and their impact. First up: re-negotiating NAFTA.
The historical problem Brazil has been unable to solve is the need to build an inclusive economic model that can help alleviate poverty and reduce inequality. That will require cutting subsidies and benefits to interest groups that have long benefitted from fiscal spending. As the year comes to an end, Brazilians will be happy to forget a bad year in terms of politics and the economy. Unfortunately for them, 2017 might not be much better.
Access to the U.S. market and proximity have led to the development of an array of regional value chains in Central American economies. But with the right policies more can be done. Here are some examples.
Contrary to those who say we don’t make things anymore and that all our jobs are being shipped offshore, the truth is that manufacturing is the largest industry by far for foreign investors, with chemicals being the leading sector.