The World Turns to Rebuilding with BRICS

After the latest G8/G20 meetings in Korea and the recent thumping Mr. Obama received in the latest elections, the importance of China, its exchange policy and the rest of the BRICs are being relied upon to keep the global economy moving, while Ireland is saved, the US sorts itself out slowly and the young Ms. Palin dances her way to be the next Chelsea Clinton.

Latin America has always been the region that would always catch a cold in the form of a financial meltdown every time a Russia, Turkey or S.Korea would come into national economic crisis. Since 2008 with the exception of Mexico, Latin America has done relatively well, and Brazil is even poised to be the next China or India. The hype however is not always true, and the future cannot be predicted until it becomes the present, meaning that Brazil and Latin America has to play a positive role in order to make the current boom into true growth and economic progress.

The FT.com has an interesting site dedicated to BRICs and Latin America, called beyondbrics, the FT and its writers and bloggers brings to light internationally significant developments that affect Latin America and its growth related to other BRICs and the world economy as a whole. Some of the issues they addressed this month were of great interest. Recently Colombia seems to be moving towards Asia, as the US lingers over a free trade deal with their South American ally. Colombia often takes the heat in the region for its close ties to the US and many feel that while Colombia fights to keep drugs out of the US and handles Chavez and its own internal violence, that the US should give them the ability to sell its other products and commodities in order to build up non-narcotic industries along with the coercive measures to stop the FARC and other Cartels.

Regarding economics, the ups and down of the Mexican economy in 2009 continue after a few months of positive growth and the recent dip in the Mexican economy recently due to international pressures. These pressures have affected BOVESPA as well, as Brazil’s economy takes a hit due to Ireland’s recent economic crisis and China’s move to curb its critics by trying to lower inflation, slowing commodity growth and affecting Latin America as a whole. The bigger picture can be summed up in the post on “Latin America’s hottest economies” that gives an interesting picture of growth, showing that countries like Argentina, while having maintained their economic reputation from 2001, has done well to bring itself back into strong growth, supported by China and its commodity exports. Colombia and Brazil also stand out of the places that will have a brighter future in the region. Mexico stands out, as a competitor with China’s manufacturing sector and strong ties to the US, their decision to tie themselves to the world’s largest economy is hurting them since 2008, although when the US returns to stability, hopefully so will Mexico, with a few strong southern neighbours to help as well.