Latin America could become an alternative to China
But only if the protectionist policies of the region’s politicians don’t get in the way
LATIN AMERICA’S economies are punch-drunk from the pandemic. No other region suffered a bigger drop in GDP in 2020 or a higher death rate. Even before the coronavirus arrived, the larger Latin economies lagged behind emerging-world success stories in Asia and Europe. They were held back by poor governance, excessive dependence on commodities and protectionism. In the steepness of its barriers to trade, the region is second only to sub-Saharan Africa. From 1995 to 2015 its participation in global supply chains rose by just 0.1%; in the rest of the world supply-chain trade jumped by 19%.
This article appeared in the Leaders section of the print edition under the headline “Building back best”
From the October 16th 2021 edition
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