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CRITICAL ANALYSIS OF GLOBAL DEVELOPMENTS, TRENDS & IDEAS

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Argentina

Cyclical Failure – Economic Crisis and Commodities in Latin America

in Economics/Latin America/Politics by
chuquicamata chile mining

Despite a great deal of discussion on the information economy in recent years, (much of it useful and much of it overhyped,) the actual world economy’s health is still reliant on raw materials, which is expressed in their prices. While in parts of the developed world the recent fall in commodity prices has been referred to as the equivalent of a tax break, in countries that are heavily dependent on commodity exports, calamity is a better reference point. The primary issue here is dependence. Many developed nations also produce raw materials in great quantities, but their economies are comparatively diverse. When a nation’s basket of exports is dominated by just a few commodities while its import basket is varied, economic crises are more likely to occur.

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