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Political Vision Affects Growth in South America
Sep. 5, 2016
In recent years, many changes have occurred in the political scenario of South American countries. Most came from a traditional capitalist system where the means of production, distribution, decisions about supply and demand, price, and investments were largely privately, for profit.
Recently, there has been an increase in interest in a popular socialist political line. This led to fast and untenable development. As a result, Brazil is experiencing a period of political instability with economic deterioration and with the return of a system based on supply and demand.
Brazil
Brazil experienced accelerated growth in recent years, which has global importance due to the potential of its internal riches. However, the poor management of the country and corruption in almost all political segments had driven it into a period of economic recession, culminating in the impeachment of President Dilma Russeff.
The current president, Michel Temer, the vice president of the previous administration, has received strong support, mainly from industrialists, investors, and agribusiness players. The new government structure has the potential to guide the country toward growth and prosperity.
In Brazil, agribusiness has achieved significant growth and helps to reduce the impact of the economic crisis. This growth is mainly due to the foreign market, which buys much of the agricultural commodities produced in Brazil. Despite the inefficient management policy of recent years, agribusiness is one area that holds tremendous potential for gains as Brazil holds vast natural resources that can support the development of this sector.
Currently, support from the government is uncertain, but if this administration remains in power, Brazil will have great potential to grow again in the coming years, especially in agribusiness, as the current minister of agriculture, Blairo Maggi, is a strong entrepreneur in the sector.
Chile
Michelle Bachelet Jeria of the Socialist Party of Chile has governed the country since March 2014. Chile has also faced a struggling economy in recent years, mainly due to the reduction in exports of minerals, damaging the country's growth. Currently, the country has no significant share in the agribusiness sector. However, it is a major exporter of minerals for the world agriculture market.
Paraguay
The Paraguayan economy has shown a great openness to foreign trade, following a large jump in international transactions in the last decade. Paraguay currently exports mainly agricultural products, such as soy, beef, and corn. This makes the country stand out in the global agribusiness market.
The current government has faced problems with infrastructure, but it is investing heavily in the development of the country, mainly in the agricultural and livestock areas. Thus, like Brazil, it also has great potential for growth in this sector, due to the natural resources of the country.
Peru
Industries and the extraction of minerals make a significant contribution to the GDP, but the country has suffered greatly due to the drop in foreign trade and exports, which has slowed the economy. The country's agriculture sector does not represent much of the global market share, but the country has potential for further development when the global economy grows.
Uruguay
The country's economy is strong in the services and agriculture sector. Uruguay has a high export value, especially for livestock, such as goats and cattle for meat and dairy.
Uruguayan industries are well developed and have a well-trained workforce. The most prominent industries are food (because of the strong livestock sector), textiles, and chemicals.
The government invests some 20% of the GDP in infrastructure, R&D, and other means of optimizing the technological development of the country. Currently, Uruguay is the largest exporter of software in South America.
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