Latin America's Economic Progress Essay Example | Topics and Well Written Essays - 750 words

Latin America's Economic Progress - Essay Example There is a persistent problem of political instability in the region. Since the independence of Latin America, the political environment has not been stable enough to facilitate economic development. Dictatorship of military officials has long controlled the region and this was one of the constraints in the way of economic stability. The economic factors such as rate of inflation, rate of economic growth and income distribution, all pointed towards a deteriorating economic condition. Numerous economic reforms have been taken by the government but they have not been applied properly due to the prevailing political instability. According to a study conducted by Luisa Blanco and Robin Grier within the period between 1971 and 2000, in 18 Latin American countries there were 451 political assassinations, 217 riots, and 113 crises that threatened to destabilize the sitting government (Blanco & Grier, 1). Apart from Costa Rica, Colombia and Venezuella, all the other countries in the region w itnessed severe political instability. Regional Disparities The independence of the region widened the regional disparities and this is also one of the reasons behind lack of economic growth in the region. ... Resistance to Change One of the reasons behind the failure of economic reforms is the prevailing resistance to change in the region. Any kind of change is considered to be hostile by the population of the region therefore it is not accepted completely. In order to facilitate economic growth, there are a number of factors that need to be changed in the region but due to the prevailing resistance to change in the region any modification in the economic policies or any introduction of reforms is not implemented properly. The development of strategy is done but the implementation phase is the real problem in the region. The restraining forces overpower the driving forces therefore the economic reforms are not implemented and the economic growth remains at a disappointing pace. Lack of Industrial Development It has been said that the Latin American region is rich in natural resources but still the region has been unable to reach the heights of economic development it should have reached b y now. The natural resources held by the region are benefiting the developed countries more rather than the Latin American region itself. This is due to the lack of industrial development in the region (Llosa, 17). In the absence of industries to process the raw natural resources, the region has been unable to produce finished goods. Instead, the Latin American region exports the natural resources it possesses to other developed countries at low prices and the revenue generated by such exports is not commendable. If the region had its own production facilities that put the locally produced natural resources to use, the economic condition of the region would have been different. With domestically produced affordable raw material, the industries would not only