New Dawn

For many years the economic spotlight was on Europe and now it seems to have changed to a different continent; Latin America. The stars shining stars in Latin American economies are Brazil and Chile.  What  seems to keep Brazil going is abundance of resources and a strong support for their middle class. In the case of Brazil there is also a reverse migration; which I find very ironic. The same thing is going on with Chile. According to BBC news, “There was a time when European economists looked at Latin America with horror. Weighed down by debt, plagued by hyperinflation, and ravaged by unemployment, the region was a financial disaster zone.Those days are long gone.As the leaders of Latin America and the European Union (EU) prepare for their seventh biennial summit in the Chilean capital Santiago this weekend, the region is enjoying unprecedented stability and prosperity.The EU-Latin American relationship has been somewhat turned on its head. These days, it is the Europeans who are grappling with austerity measures, joblessness and an intractable debt crisis.” With this new stability and prosperity it would be a great time for Latin American countries to form closer economic relationships. The idea of MERCOSUR offers the chance to form closer economic relationships. What is MERCOSUR?  The Mercosur, Mercado Común del Sur (Common Market of the South) is a motivated economic integration project which includes the founding members Argentina, Brazil, Paraguay and Uruguay. In 2008, Venezuela, Chile and Bolivia became associate members. Peru, Ecuador, Colombia have uttered their enthusiasm to join the group, and Mexico has shown a growing interest.Mercosur’s core objective is to amplify the effectiveness and competitiveness of the all member economies by opening markets, promoting economic development in the structure of a globalized world, improving infrastructure and communications, making better use of available resources, preserving the environment, generating industrial complementation and coordinating macroeconomic policies.I hope that what seems to be a good opportunity for long-term stability and prosperity isn’t wasted. Click here to read the full BBC article