Latin America and the Caribbean in the World Economy

1681-0295 (online)
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This publication reviews the main features of a persistently weak global economy and world trade and then turns to global and regional trade trends and prospects. The publication considers the main changes in the organization of production and global trade associated with international production networks, which are at the heart of current mega-regional negotiations. It looks at how the region's countries are positioned in international production networks and value chains. It analyzes the main factors underpinning participation in production networks and value chains, as well as the implications they have for integration.
Also available in Spanish
Latin America and the Caribbean in the World Economy 2016

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Latin America and the Caribbean in the World Economy 2016

The Region Amid the Tensions of Globalization You do not have access to this content

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18 Apr 2017
9789210585705 (PDF) ; 9789213580486 (EPUB) ;9789213580486(print)

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The 2016 edition of Latin America and the Caribbean in the World Economy reviews international and regional developments from a trade perspective, describing the principal global economic trends and structural changes in international trade, the main areas of trade growth and the changes these drive in the region.

Also available in Spanish
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  • Foreword

    Globalization has become increasingly questioned in the past few years, particularly in the developed countries, as a result of many converging factors. Cross-border trade and financial flows, which expanded rapidly in the 1990s, slowed heavily after the financial crisis of 2008 and 2009. Cross-border digital flows were not affected by the crisis and maintained their exponential growth. The slowdown in trade, foreign direct investment and other financial flows reflects lacklustre global economic growth in the post-crisis period and has led to high unemployment and wage stagnation, particularly in Europe. In addition, income distribution has deteriorated in practically all the advanced economies in the past few decades, and immigration to the United States and Europe has risen steadily. Another source of the mounting discontent in developed countries is the lack of coordination or global public goods capable of mitigating the social and political tensions associated with this phase of hyperglobalization.

  • Summary

    From the 1990s onwards, economic relations between countries entered a new phase, known as hyperglobalization, characterized by rapid growth in cross-border flows of goods, services and capital. In addition, since the 2000s there has also been a surge in cross-border data flows. Another trend has been the increase in the proportion of migrants in the population of industrialized countries, even though their share in the world population held steady. Hyperglobalization is also characterized by the low presence of global public goods and international coordination mechanisms that would correct or reduce the tensions associated with this phenomenon.

  • Dissatisfaction with hyperglobalization

    The world is undergoing an intense economic globalization process that has gained momentum since the 1990s, and is characterized by the slashing of barriers to trade in goods and services and to international capital movement, by the development of international production networks led by multinationals and, in the past decade, by a surge in cross-border data flows. Globalization, along with the ongoing digital revolution, has changed the roles that the different regions of the world play in global production, with major consequences in terms of income distribution. Several developing countries, particularly China and other Asian economies, are emerging as winners by increasing their share in production, trade and foreign direct investment (FDI).

  • Foreign trade by Latin America and the Caribbean: Adverse conditions continue

    The tensions caused by globalization and weak institutions’ inability to overcome them, analysed in the preceding chapter, have different repercussions, depending on each economy’s production and technological structures and internationalization patterns. History shows that countries’ ability to respond to international crises depends on the strength of their institutions, which determines to a great extent how proactive and effective their policies can be. There is no deterministic relationship between globalization and development that necessarily produces negative results for a country or region in the long term. The international economic system’s inherent complexity creates niches of action for nations willing to integrate into a system that is, by definition, heterogeneous and has serious imbalances of power.

  • The Trans-Pacific partnership: A preliminary analysis

    On 4 February 2016, after nearly six years of negotiations, 12 countries from Latin America and the Caribbean, North America, Asia and Oceania signed the Trans-Pacific Partnership (TPP). The agreement is currently in the process of being ratified by the signatories, which could take some 18 months.

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