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- W191243414 abstract "1. The Growing Marginalization of Latin America in the World Economy During the last 30 years, Latin America's participation in world trade shrank by almost two-thirds. In 1960 the region accounted for almost eight percent of world trade; 20 years later its share was six percent and in 1990 the figure dropped to 3.3%. This year the combined exports of Latin America, a region populated by more than 430 million inhabitants, amounted to less than $130 billion U.S. dollars, which is less than the exports of the Netherlands (more than $131 billion), whose population is only 15 million. A similar retreat has taken place with respect to relative per capita income. In 1960, the region's per capita GDP amounted to 22.2% of the average per capita GDP of the OECD countries; in 1970, it was less than 18% and in 1987, it was 12.5%. These figures reveal the contraction in the level of economic activity along with the deterioration of their negotiating capacity and growing marginalization in international affairs. From the 1950s to the 1980s, U.S. direct foreign investment in Latin America increased almost eightfold. At the same time, it grew 28 times in the developed countries and almost tenfold in developing nations. At present, Latin America receives a seventh of U.S. direct foreign investment worldwide, and a little more than half of its investment in the underdeveloped world. Over 90% of U.S. investment in the region derives from reinvestment of profits. In recent years, there has been an improvement in international trade, with Latin America accounting for one-third of U.S. trade with underdeveloped countries - with Mexico keeping its position as the main Latin American trade partner for the U.S. In a typical relation of dependence, the United States is more important to Latin America's economy than Latin America is to the U.S. Throughout the 1980s, Latin American exports to the U.S. grew from 42.1% of the region's total exports to 52.1%, as imports from the U.S. grew from 42.9% to 57.2% of all of Latin America's imports. However, the region's share of U.S. imports dropped from 14.5% to 9.7% in the same period, and its share of U.S. exports dropped from 17.6% to 13.6%. This situation is the more serious given that it is a relation of dependence with an economy that is in retreat in world terms. In recent years, the dynamic Japanese economy has excited the interest of several Latin American governments, raising expectations of closer economic relations. So far, practical results have been meager. Japan maintains a strong regional specialization in its international links, and Latin America plays a minor role in them. Throughout the 1980s and early 1990s, trade with Latin America has amounted to only four to five percent of Japan's foreign trade and the region's share of Japanese direct foreign investment has dropped despite an increase in absolute numbers. The landscape is basically the same when we turn to the European Union (E.U.). Latin America's share in the E.U.'s exports dropped during the 1980s, whereas that of other developing areas increased (Southeast Asia) or remained stable (Africa). This development may be doubly harmful. If, as some warn, the formalization of the European Union involves negative extra-Union effects, these will strike mainly at nonpriority areas (i.e., Latin America), which would also receive smaller quotas of positive effects should they prevail. 2. Financial Affairs Versus Productive Efforts International marginalization, the persistence of external vulnerability, the way in which the region's governments faced the crisis of the 1980s, and the policies subsequently implemented contributed to the configuration of Latin America's current economic outlook. The region has been embarked on a scheme of moderate growth with low salaries, high capital profitability, and social exclusion, in a context of broad trade and financial opening as well as growing foreign debt. …" @default.
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- W191243414 date "1996-03-22" @default.
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- W191243414 title "Latin America and the New World Order" @default.
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