Productivity And Economy In Latin America

Productivity and economy in Latin America

Introduction

Latin America after more than a decade of insertion into the world economy, it has not been able to overcome its problems of export dependence as well as geographical, which is why Latin American countries with respect to other regions of the world have become expensive countries, since it is indisputablethat you cannot compete with regions whose economic development is capitalist. Namely, the Latin American economy presents excessive fragility to external partners and agents, these factors do not allow progress in production and industrialization. One of the roads towards a new financial course is through economic integration.

Developing

It is a commercial strategy that makes a much stronger and more powerful region, in addition to increasing its industrial productivity. Economic integration not only helps to understand the benefits of a regional union, but also allows to obtain a clearer vision of the different problems faced by Latin American countries. Currently, the region’s economic panorama is more promising than a few years ago. The increase in the industrialization of Latin America, if it is done successfully, will develop greater progress associated with the introduction of new technologies, will raise the standard of living of citizens.

The job rate will improve and offer the possibility of increasing the financial income of each region. In such a sense, the nations in the way of increasing that are part of the integration system and seek a reciprocal benefit, must pluralize the investments between the economic agents through treaties of free circulation of goods and services, that is, to expand the chains ofValue through the progressive elimination of barriers and commercial borders to promote a free trade area.

Therefore, each Latin American country must know and identify its restrictions.

Because they can establish modalities and conditions in their productivity generating better economic growth, such as developing areas of innovation, market economy stimulation, infrastructure implementation or among other factors, to avoid future reproduce dependency relationships that do not allowincrease economic stability. The economic integration of Latin America plays an important role about economic expectations over the next few years, each member country must meet a recipe to achieve a first world state, according to the DROs. César Peñaranda Castañeda in his book "Economic Agenda for Change". 

Each region must satisfy the three E, that is, be efficient to optimize the use of resources, be effective to meet its objectives and goals, and be equitable to avoid biases and favor the most needy. It is important to recognize that high economic growth is a consequence of a short, medium and long term integration, for this reason macroeconomic foundations must be respected, that is, production is decentralized. In sum all these factors will produce a gradual result in the development, growth and competitiveness of Latin American countries.

conclusion

In conclusion, economic integration was born as an instrument to break the dependency relations of Latin American regions, whose multiple process requires the participation of each party, since as in every challenge there are numerous difficulties that do not allow efficiently to advance with its main objective, which is to benefit each other. Thus, the regions in the face of an economic integration that implement the efficient and necessary mechanisms will seek to intensify their financial relationships, create lines of trade, and bet on technological, productive and industrial growth, in addition to strengthening links and harmonizing rules in thecountries in the Latin America region.