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Latin America losing its competitive edge as demand for commodities slows down

Tuesday, June 3rd 2014 - 05:26 UTC
Full article 17 comments

The United States ranks as the most competitive country in the world in a survey of 60 countries by IMD, a leading global business school in Switzerland. The survey finds Europe is recovering some of its competitive edge, while emerging economies, particularly in Latin America are struggling to hold their own. Read full article

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  • BOTINHO

    With respect to what Mr. Bris yes and no.

    Yes Brasil economic growth was very fast. Infrastructure remains a problem.

    But no regarding the protests stemming from the lack of trickle down. That is not the reality.

    The reason for the protests is that exclusively public funds, rather than private funds were used in massive amounts to finance the World Cup stadia. Had this financing been from private funds, or a percentage less than the 97 % quoted in O Globo, it would have been easier to accept.

    Seeing others at the top further enrich themselves in this, it has become a subject of “ Well, what's in it for me then ? ” Ergo the resentment. Crowds are more angry at the World Cup, then they are at the escândalo do mensalão corruption verdicts.

    The fact is conditions are good here, but very expensive since 2010-2011. Better value to buy ones average groceries in Zürich today than it is in Rio.

    Jun 03rd, 2014 - 08:25 am - Link - Report abuse 0
  • Brasileiro

    The sensationalist media and idiot and poor public who reads it gives too much credit to who speaks nonsense in Europe.

    I believe that the end of this century, Europe will be fighting with Africa to see who is more competitive.

    Jun 03rd, 2014 - 11:05 am - Link - Report abuse 0
  • ChrisR

    @ 2 BRASSO

    What do you know about anything other than crap militaristic videos that show Brazil in a poor light?

    The real problem about being competitive is that some people (countries) respond to the challenge and rise to the top (US, UK and Germany) whist all the rest flounder.

    And there we have it. The work ethic in SA is abysmal compared to the Western World. That is why agriculture is king in Brazil: you can mechanise it and you don’t need millions of idle bastards on the payroll as you had before.

    However, your automotive manufacturing is riddled with union problems and lacks the efficiency of other manufacturers throughout the world.

    Perhaps if you tackled that and kicked the unions in the balls things would be better.

    Oh NO! I can see what would happen: the government would grab the new money for themselves!

    So don’t bother. With your system you are screwed.

    Jun 03rd, 2014 - 12:18 pm - Link - Report abuse 0
  • Tik Tok

    #2 Just where are Brazil competitive again??? Agriculture to the farm gate is, but after that the Brazil cost takes its toll. Your manufacturing is generally inefficient, Government overbearing and cumbersome. You need to take your blinkers off, accept well leveled criticism and then pull your finger out and do something to improve instead of blaming the next guy.

    Jun 03rd, 2014 - 02:22 pm - Link - Report abuse 0
  • Briton

    Did they have the competitive edge in the first place..

    Jun 03rd, 2014 - 05:55 pm - Link - Report abuse 0
  • ilsen

    How does Venezuela feature in the 'New South American Economic Dawn'?

    A nightmare, perhaps?

    ALBA dragging Latin America down again?

    Jun 03rd, 2014 - 08:45 pm - Link - Report abuse 0
  • BOTINHO

    Below scale, ilsen -

    Great potential with another administration, but diplomatically Venezuela is at a minus < - .600 >. Perhaps less.

    Jun 03rd, 2014 - 09:13 pm - Link - Report abuse 0
  • tRoll_with_the_Punches

    USA and Europe are enjoying a brief DEAD CAT bounce. They have huge demographic, budget/debt, and social challenges up ahead in the next 20-40 years.

    Expect precipitous economic and social decline, and many nations in the forsaken north will NOT survive.

    Jun 04th, 2014 - 02:38 am - Link - Report abuse 0
  • Anglotino

    Really?

    What social challenges?

    Please regale us with your boundless knowledge and well researched facts.

    I don't see many western countries dealing with the number and scale of protests in Brazil or Venezuela at the moment. I don't see many western countries dealing with the low growth and sky high inflation of both Argentina or Venezuela. I don't see many western countries placing military personnel throughout a country to deal with something as simply and benign as elections such as Argentina feels it needs to.

    So what are these deeply disturbing “social challenges up ahead in the next 20-40 years”?

    As to demographics! Bahahaha. Have you even researched China's demographics? Or Russia's? Now there is a dead cat bouncing. Both countries will have less people in 40 years. Now there's a social challenge if I ever heard of one.

    While you do (hint, they are worse than pretty much any western country), check out Brazil's. At 1.8 its TFR is lower than Norway, Sweden, Ireland, Iceland, UK, Australia, NZ, US, France, Finland, Denmark and Luxembourg.

    So much for Brazil's demographic sweet spot.

    By 2050 Brazil, Mexico and China will all have a higher median age than the US.

    As for budget deficits and debt. Being an Argentinean you should know better than anyone that a country can come back from debilitating levels of financial stress.

    That's your problem Nostrils. Not only can't you argue, but hear some simplistic world viewpoint and repeat it without any sort of critical thinking.

    Currently Australia, US, UK, Germany, Japan, France, NZ, Norway, Israel, Switzerland and Czech Republic have higher growth than Brazil. What good is Brazil's lower debt doing it now? And I can name half a dozen western countries with lower government debt too.

    The whole west is declining rant is so 2008. Time to update your knowledge with some of the realities of 2014.

    Jun 04th, 2014 - 06:35 am - Link - Report abuse 0
  • yankeeboy

    The only thing Toby has are unfulfilled wet dreams. He thinks we are collapsing because he sees collapse around him every day.
    He'll never know what it is like to live in a civilized country, with hope for the future. It is beyond his capacity and imagination.
    In the USA we talk the research happening now at PRIVATE companies, mining asteroids, traveling to Mars, self driving cars, all sorts of sci-fi coming to life!
    We know there's going to be heat and a/c when we get home, food in the stores, gas for cars so we can spend out time inventing and innovating. Not slogging through our daily lives wondering if the lights will be on when we get home or if there's cash in the ATM to buy what's left at the grocery stores, fighting daily protests just to get to work or home.
    It is beyond his mental ability to understand we are light years ahead of the ruins he sees everyday.

    Jun 04th, 2014 - 03:05 pm - Link - Report abuse 0
  • tRoll_with_the_Punches

    Oh boy, you two are in for some disappointment in the next decade. I pity you both. Sweet waking dreams, losers.

    Jun 04th, 2014 - 05:44 pm - Link - Report abuse 0
  • Briton

    That a bit far to make a prediction,
    why not say you will get the islands back in the next 500 years, or china will defeat America by 2099,

    considering you wont be alive, or the rest of us,

    but can we predict something sooner,
    the islands will still be British in ten years time
    we will be out of Europe by the time ten years are up,
    the west will still be here in ten years time,

    Cfk will be gone in within the next 5 years,
    Argentina will default within the next 5 years
    and you wont be on here in the next 5 years.

    lolol

    Jun 04th, 2014 - 06:17 pm - Link - Report abuse 0
  • yankeeboy

    Tell us oh wise one in detail how you think the collapse of the world's richest countries will roll out in the next decade.
    I am anxiously awaiting you brilliant insight.

    Jun 04th, 2014 - 08:40 pm - Link - Report abuse 0
  • Anglotino

    “Oh boy, you two are in for some disappointment in the next decade. I pity you both. Sweet waking dreams, losers.”

    That's it?

    Wow the depth of analysis was amazing.

    Just over a decade ago Argentina was flat broke.
    Just over 2 decades ago the Soviet a union still existed.
    Just over 3 decades ago Argentina had become a democracy yet AGAIN.

    At least I use facts to back up up assertions and predictions Not wishful thinking.

    My country is already arguing over tax rises and cuts to benefits be cause of fiscal problems that will START to manifest in more than a decade. Countries like India and Brazil can hardly plan for next year as they are too busy being reactive instead of proactive on most fiscal issues.

    There are currently no major social discords in the west that would cause societal collapse.

    The demographics of the west are not as dire as some developing countries.

    Fiscal issues are slowly being dealt with and while burdensome to some countries, there is little chance of default. The US economy for instance is estimated to be $9 TRILLION larger in 2024. If its debt ratio is the same as today then what has really changed? Why would its debt ratio be higher?

    The west is declining is a refrain that is now sounding like a wishful thinking mantra. More so because people like Nostrils that consider themselves some sort of super intellect can't even support the claim when needed.

    Jun 04th, 2014 - 09:16 pm - Link - Report abuse 0
  • yankeeboy

    14. Its his wet dream to see the civilized nations fail. He wants everyone to be as poor and filthy as he is.
    When all you see are slums you think everyone lives that way.

    Jun 04th, 2014 - 11:28 pm - Link - Report abuse 0
  • ElaineB

    Anglotino hit the nail on the head. TTT goes to other websites and hears something he thinks sounds cool and fuels his hatred then brings it here without really understanding it. It is why he can't debate.

    He is obviously young and bitter but he really needs a distraction. He told us he has never dated women or men (whichever is his choice is just fine) so maybe he should start. He might get a whole new perspective on life.

    Jun 05th, 2014 - 01:18 pm - Link - Report abuse 0
  • ilsen

    I agree fully with ElaineB.

    A succinct summary.

    Thanks.

    Jun 05th, 2014 - 10:15 pm - Link - Report abuse 0

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