Latin America and the Caribbean are Adrift. A Dependence Reinforced by the World Crisis

Abstract

Since the outbreak of the crisis in 2008, the world economy has changed its previous behavior. The slower pace of international trade and the reduction of investment flows stand out. This crisis results in a situation of turmoil in global geopolitics. This paper evaluates the situation of Latin America and the Caribbean under this scenario. Despite having various integration projects, their pattern of trade is aimed at outside the region, where it establishes a specialization of low added value. The results, in all the lines of the balance of payments, point out that the opening of the economy tends to reinforce the dependence of the region.