Limitations to Economic Development in Latin America

Recap from the CIA Factbook Data Chart Why do you think the countries of Latin America are not as well off as the U.S.?

Recap from the CIA Factbook Data Chart Why do you think the countries of Latin America are not as well off as the U.S.? Answer: A key factor is that most of Latin America never industrialized or did so late in the game.

Recap from the CIA Factbook Data Chart Interesting data: Mexico is one of the best off countries in GDP per capita and yet it has 52% living below the poverty line. What’s going on?

Recap from the CIA Factbook Data Chart Interesting data: Mexico is one of the best off Latin American countries in GDP per capita and yet it has 52% living below the poverty line. What’s going on? Answer: Mexico has a big gap between rich and poor.

Ethnicity Argentina, Uruguay, and Chile are mostly white (88% or greater) Guatemala has the highest percentage of people that identify as pure blooded indigenous (Amerindian) at 40%. Bolivia is typical of many Latin American countries: 68% mestizo, 20% indigenous, 5% white.

Miraflores

Villa Maria del Triunfo

Factors that stunted economic growth in Latin America: Disclaimer: There are many complex factors behind something like this, but this is my take: 1. Legacy of the hacienda system *It really started with the encomienda system in which conquistadors (conquering Spaniards were granted land with indigenous slaves to work them. Over time they became known as haciendas.

Factors that stunted economic growth in Latin America: Legacy of the hacienda system Corruption

Manuel Noriega

Noriega in Black Ops II

Factors that stunted economic growth in Latin America: Legacy of the hacienda system Corruption Weak middle class

Factors that stunted economic growth in Latin America: Legacy of the hacienda system Corruption Weak middle class Foreign exploitation of resources

United Fruit

Factors that stunted economic growth in Latin America: Legacy of the hacienda system Corruption Weak middle class Foreign exploitation of resources Illiberal economies (too regulated)

So how does Latin America stack up against other regions of the world So how does Latin America stack up against other regions of the world? Haiti - $1800 Democratic Republic of the Congo - $800 Afghanistan - $1,000 *In Asia alone, there are 17 countries poorer than Nicaragua (Latin America’s 2nd poorest country).

Cayman Islands GDP per capita = $43,800