Economic Liberalization and Integration in Latin America and
In the 20th century the region of Latin America and the Caribbean (LAC) was marked by the rise and fall of powerful dictators who ran the economy much like they ran the country. Statist models that actively pursued import substitution industrialization (ISI) were common during this time in many Latin American countries. Eventually, the authoritarian governments fell and were replaced by representative and constitutional democracies (many corrupt, but democracies nonetheless). With the passage of time, the new democracies have tried limit the extent of government corruption, mostly due to pressures from the developed countries and from civil society. With consolidated democratic regimes, the region's economic situation is improving and LAC countries are closer to trade liberalization and integration with their neighbors than ever before. The World Bank and the U.N. Commission for Latin America and the Caribbean estimate that the region's gross domestic product (GDP) grew by 1.5% in 2003 (slightly more than the population growth rate of 1.3% - 1.4%), compared with a 0.4% - 0.8% contraction in 2002. Those LAC countries that have adopted sound fiscal policies and oriented their economies toward greater foreign investment and rule
Above all, UN officials hope these projects will create jobs, directly and by employing local parts and service suppliers. Bilateral and multilateral agreements, such as the North American Free Trade Area (NAFTA), protect investments at the expense of environmental and health regulations. The rich countries and large corporations dominate the global marketplace and create very unequal relations of power and information. Many corporations are richer and more powerful than the states that seek to regulate them. By the end of the 20th century, TNCs had gained control of many of the former government monopolies in telecommunications, power generation, and transportation in the LDCs. An additional problem is that free trade is not equally free. The EU also practices export dumping, that is, products are exported at prices far below the costs of production. If true global competition is the goal, and transatlantic mergers will continue to occur, then anti-trust legislation accompanied by strict regulations must be imposed on TNCs. Finally, the governments' of LDCs should regulate the ease with which TNCs move from one location to the next so that the loss of jobs is minimized. Currently, trade is so dominated by transnational corporations that new trade rules mainly benefit those companies. The developed countries want to open world markets to their goods and capital and take advantage of the abundant and cheap labor in the developing nations, a policy often supported by Latin American elites. Although the presence of TNCs in the LAC countries, has significantly influenced economic growth and prosperity and increased employment, their lack of ethical considerations and lack of regulation have allowed TNCs too much power over LDCs, causing them to lose some of their economic sovereignty. Regarding the working conditions in TNC factories the United Nations Conference on Trade and Development (UNCTAD) could create a body, which would regulate and oversee working conditions much like the United Nations tries to do with human rights.
Common topics in this essay:
Latin American,
European Union,
TNCs LAC,
America Caribbean,
Haiti LAC,
Trade Standard,
Investment Foreign,
Transnational Corporations,
World Bank,
Corporations TNCs,
lac countries,
economic growth,
developed countries,
cheap labor,
transnational corporations,
developing countries,
third world,
world economy,
poor countries,
trade barriers,
foreign direct investment,
trade barriers markets,
latin america caribbean,
international monetary fund,
integrated world economy,
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Acceptance Essays
