In economic terms, why is "south" bad? There is really no reason why a downward trend should be perceived as negative when in fact it can be a good thing. We all would like unemployment trends to go down, inflation to go south, and the trade deficit to go way south.
Recent economic reports from Latin America are showing signs of significant growth in countries supporting private enterprise and foreign trade. The economy of the leading emerging power in the region, Brazil, grew by an unprecedented 7.3% last accoding to the World Bank. Other countries showed impressive growth as exports to places like China grew by figures not seen in decades.
Government austerity measures and a lack of dependence on the banking sector for financing of real estate for example also played a role in the turnaround of Latin American economies.
American business should take pause and analyze these trends “south” of the border to find ways of connecting with their success. Mexico is our second largest trading partner and is poised to surpass Canada in the future as the Mexican economy and population continue to expand. Chile has been a beacon of success for decades and continues to show impressive numbers in its diversified economy.
Opportunity awaits in the future for US businesses in places like Cuba, once the US embargo ends. (The elimination of the embargo took a big step forward with the approval of a House Agricultural Committee bill yesterday to ease restrictions on the 50 years old economic embargo.)
The US is in a unique position to reach “south”. The proximity to Latin America and the 50 million Hispanics who maintain economic, cultural, and emotional ties with the region, give us a huge lead which we have not fully taken advantage of. There is no reason why China should be Brazil’s largest trading partner. We ought to look at our back yard and see what our neighbors are doing and together forge a strong hemispheric economy.
The American economic should go “south” and expand our trade links with the countries of Latin America.
Thursday
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