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According to Romero’s examination, there is a likelihood that the Latin American region is facing bright economic days ahead but there are challenges with enough potential to derail the expected economic growth in the region.
“Los Olivos offers a glimpse into the growth lifting parts of Latin America out of poverty, but big exceptions persist” (Romero 2).
Los Olivos is a working-class district in Lima. The district is coming up economically and business activities are flourishing in the area. However, as Romero pointed out, development is not taking place all over Lima and in general not all over Latin America. Challenges are facing the region which can derail its quick economic growth. Apart from Romero examining the huge economical potential that Latin America has, he did not fail to point out some huge drawbacks which can, with much ease, derail the expected economic growth.
The current general trend in Latin American countries is a positive growth in the economies with exception of few nations such as Venezuela and Ecuador. Despite the broader trend of positive economic growth which has been identified, scholars have aired their fears that the trend can not hold on for long enough. Concerns have been raised about the political instability of the region, the region’s exponential growth in reliance on China, and overreliance on exports. The region’s overreliance on China exposes the region to the policies of China and this may be detrimental to the region’s economic growth.
The region indeed has a huge potential of becoming a regional business hub. For this to be achieved, there is a need for the nations in this region to forge ahead as an economic bloc. There is a need to stabilize the whole region through democratization. Country development in the region has to take place even if the whole region is to benefit internally from each other.
There is also a need to develop more regional-based solutions to support and boost the region. Brazil being a bit ahead of the other members in the region needs to take more initiatives within the region to ensure that the bloc evenly develops; this can be possible if Brazil redirects some of its attention and focus from China to other members of the region. A strong, stable, and united Latin America will be in a good position to absorb economic shocks and be in a better bargaining position with other economic blocs.
The region is still underdeveloped and forming a tight economic bloc will make it possible to develop the region faster, for instance, it will be possible to construct superhighways cutting across the region thereby making it possible for economic development across the region a possibility.
Romero, Simon. Economies in Latin America Race Ahead. The New York Times, 2010. Web.