ESIC News
Diciembre 2015
Some important factors that affect the competitiveness and its application to Latin America
Publicado por: Institución
Towards the end of 2015, many economists have identified new tendencies in the World's economy and its impact in the future:
- First of all, productivity and future global economic growth will not meet the expected optimistic forecasts. This is because of three main reasons. The world's population is ageing, the amount of technological development and innovation is decreasing and because of insufficient investment in infrastructure.
- The second tendency is that in the future, unemployment will be very low for the well-educated, and will probably be higher for those without higher education.
- Another important conclusion is that countries that fail do not do so because of their culture, geographical situation or climate, but because of the lack of solid democratic institutions (read “Why countries fail” by two gigantic economists, Daron Acemoglu and James Robinson. It's prologue includes the writings of nine Economics Nobel prize winners.
- Having the courage and strength to take on economic reforms and structural changes that integrate a country's economy to the rest of the world is fundamental. Compare for example the positive reforms that India, Singapore or Finland have taken, in contrast to the lack of reforms in several Latam countries.
- It is evident that the economic and social aspects have improved greatly in the last 10 years, especially in Mexico, Brazil (even with the actual crisis), Chile, Panama, Colombia and Peru.
- The countries in the Pacific basin are the ones with better forecasts.
- However, a lot of attention should be placed on the following items: