Latin American countries in the BRI: challenges and potential implications for economic development

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juliana Gonzalez Jauregui
Keyword(s):  
Developing Countries ◽  
Foreign Policy ◽  
Latin America ◽  
Latin American ◽  
Financial Integration ◽  
Policy Coordination ◽  
Chinese Foreign Policy ◽  
Controversial Issues ◽  
Content Type ◽  
Latin American Countries

PurposeAccording to official statements, BRI is a Chinese call for global cooperation, based on five priorities: policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds. The purpose of this paper is, primarily, to describe and contextualize the official discourse of China's foreign policy toward Latin America, emphasizing on BRI. On that basis, the author aims to contrast official rhetoric with real facts, bringing problematic cases associated with implementing BRI in Asian and African developing countries, so as to discuss possible challenges that Latin America can encounter when implementing the initiative. Finally, the author evaluates potential implications of resembling the Chinese three-level scheme of development in the region and make suggestions on this subject.Design/methodology/approachIn an effort to evaluate possible implications of BRI in Latin America, the paper describes and contextualizes Chinese foreign policy official rhetoric toward the region's countries. Based on that, the author brings to discussion Asian and African experiences in the implementation of the initiative and raise questions on controversial issues that Latin America could meet when enforcing BRI-related projects.FindingsAs a part of its new foreign and economic policies, China continues to strengthen its engagement with Latin American countries, enlarging its strategy though the promotion of BRI. If Latin American countries, through BRI, seek to replicate the Chinese three-level of development scheme, including domestic, regional and global scopes, certain controversial issues cannot be ignored in the design and implementation processes. Also, equal participation of Chinese and Latin American governments, societies and enterprises is decisive if the goal is to settle a long-term development scenario for the region.Originality/valueThe central thesis of this paper is that the implementation of BRI in Latin American countries could potentially replicate the Chinese three-level development proposal. To achieve such an ambitious goal, much depends on how Latin American countries define and enforce BRI projects. Full understanding of those challenges requires close attention to what the Chinese official rhetoric claims and what actually puts into practice in other developing countries already involved in BRI, so as to anticipate possible consequences for the region.

scholarly journals Main Sources of Chinese "Soft Power" in Latin America in the Modern Era

2019 ◽  
Vol 21 (4) ◽  
pp. 907-914
Author(s):  
M. I. Garbart
Keyword(s):  
Foreign Policy ◽  
Latin America ◽  
Latin American ◽  
Soft Power ◽  
Chinese Foreign Policy ◽  
Chinese Government ◽  
Important Place ◽  
The Usa ◽  
Modern Era ◽  
Latin American Countries

The article covers the fundamentals of Chinese "soft power" in Latin America. "Soft power" now takes an important place in Chinese foreign strategy, both the international level and in Latin America. The author describes the main features of international relations between China and Latin-American countries. The paper focuses on the main sources of formation of positive image of China in the region. The study revealed that Chinese "soft power" has significantly strengthened in the region in recent years. At the same time, the author notes that it is still much weaker than that of the USA. In modern conditions, Chinese government is likely to seek more active application of new forms of international cooperation, promotion of "soft power" being one of them. The methodology of the research was based on the systematic approach, which means considering Chinese "soft power" as a part of the whole foreign policy of China. Theoretical and practical relevance of the study consists in that fact that it creates a basis for further research on this issue. The results can be used to forecast the development of Chinese foreign policy strategy, as well as to study the complex of relations between China and Latin American states.

scholarly journals Policy Coordination between China and Latin American Countries under the Framework of the Belt and Road Initiative

2019 ◽  
Vol 12 (3) ◽  
pp. 129-150
Author(s):  
Xu Wenhong
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Latin American ◽  
Global Economy ◽  
Policy Coordination ◽  
Historical Background ◽  
Belt And Road Initiative ◽  
Belt And Road ◽  
Latin American Countries ◽  
The Belt And Road

Latin American countries were not a part of the earlier draft of the route map of China’s Belt and Road initiative. Through efforts of both sides, starting from the Belt and Road Forum for International Cooperation in May 2017, Latin America has become an indispensable and important participant of the ‘Belt and Road’ initiative. In view of the differences in history and objective circumstances between China and Latin America in terms of histories, cultures, current economic states and development needs etc., policy coordination plays a fundamental role in the China-Latin America cooperation under the framework of the Belt and Road initiative. This article explores the four aspects of policy coordination in the BRI context, namely historical background, philosophy, principle and objective. The article notes that the weight of the US, EU and Japan in the global economy is decreasing, and the number of contradictions in the national economies of these countries, on the contrary, is growing. At the same time, the aggregate economic weight of developing countries is increasing. This new paradigm of development of the world economy gives a chance to developing countries, namely China and Latin America, to deepen economic cooperation. China has already become the second largest trading partner and the third largest source of investment for Latin American countries. China also proposes a solution based on its own Chinese experience, which will allow countries from Latin America to further accelerate their economic growth through infrastructure cooperation within the framework of the Belt and Road Initiative. The basic principles of such cooperation are win-win cooperation, shared growth through discussion and collaboration and the essence of policy coordination, etc. It is believed that, on the premise of a high degree of consensus achieved through policy coordination, both China and Latin America will achieve sustainable and efficient cooperation and development under the framework of the Belt and Road initiative.

Growing Participation in Peace Operations and Conflict Resolution in Latin American Countries

2019 ◽  
Author(s):  
Kai Michael Kenkel
Keyword(s):  
Foreign Policy ◽  
Latin American ◽  
Armed Forces ◽  
Policy Coordination ◽  
Left Wing ◽  
Civil Military Relations ◽  
American States ◽  
The Right ◽  
Military Relations ◽  
Latin American Countries

Latin American states have become major providers of troops for UN peacekeeping operations (PKOs) since the early 2000s. MINUSTAH (Mission des Nations Unies pour la stabilisation en Haïti), the UN mission in Haiti, 55% of whose troops were from the region, was a major watershed for local security cooperation and PKO contributions. Led by Brazil, these states were able to develop a specific approach to peacebuilding that reflects regional strengths and experiences, rooted in minimizing the use of force and bringing successful domestic development policies to bear abroad. This approach also reflects the common security and intervention culture that underpins policy in the region. Two states in particular have taken on a role as major providers of peacekeeping contingents. Tiny Uruguay, with a population of 3 million people, has maintained over 2,000 troops deployed on UN PKOs (more than 10% of its armed forces) since 2005. While Uruguay’s motivations are mostly economic—UN reimbursements exceed the country’s costs—Brazil’s ascendance as a major peacekeeping provider during MINUSTAH was part of a larger emerging-power foreign policy project. Participating in peacebuilding allowed the country to provide security through actions in the development realm, bridging a key gap in many rising states’ capabilities, and to mount an incipient challenge to the Western-led peacebuilding paradigm. The remaining states of Latin America show considerable diversity in their peacekeeping engagement, with many others sending small or token contributions and some no troops at all. Latin American states’ involvement in PKOs cannot be understood without looking at their interaction with patterns of civil–military relations in the region. In the case of such states, the effect of peacekeeping participation on civil–military relations, while a key point in need of monitoring, has not been decisive, as other factors prevail. Finally, PKOs have served as the locus for a significant increase in policy coordination and cooperation in the defense arena in the region. As the UN moves toward stabilization operations which privilege counterterrorism measures over the peacebuilding paradigm that is a strength of Latin American countries, PKOs may lose attractiveness as a foreign policy avenue in the region. Additionally, the swing to the right in recent elections may serve to reduce the appeal of a practice which came to the fore under previous left-wing governments.

scholarly journals Crisis and Homesickness: A New Opportunity for Brain Gain in Latin America?

2015 ◽  
pp. 17-18
Author(s):  
Iván F. Pacheco
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Latin American ◽  
Industrialized Countries ◽  
Brain Gain ◽  
Great Opportunity ◽  
Work Abroad ◽  
Latin American Countries

While some industrialized countries face a surplus of PhDs in many fields of knowledge, developing countries face the opposite problem.  This might be a great opportunity for Latin American countries to attract talent.  However, most countries do not have a clear policy for the recruitment of faculty abroad and, when they do, it is mostly focused on recovering their own expatriates from their work abroad.

European franchise expansion into Latin America

2015 ◽  
Vol 38 (2) ◽  
pp. 149-165 ◽  
Author(s):  
Verónica Baena
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Latin American ◽  
Political Stability ◽  
Market Potential ◽  
Geographical Distance ◽  
Market Conditions ◽  
Content Type ◽  
The Usa ◽  
Latin American Countries

Purpose This study aims to enhance the knowledge that managers and scholars have on franchising expansion. In this sense, it is worth mentioning that although the body of literature on international management focusing on emerging markets is growing, the attention paid to the Latin American context continues to be limited. This is surprising given the substantive economic importance of the region with a population over 590 million, and a gross domestic product of approximately US$5 trillion. To cover this gap, the present study examines how a number of market conditions may drive diffusion of franchising into Latin America: geographical distance, cultural distance, political stability and economic development. The authors also controlled for the host country’s market potential, transparency, unemployment rate and efficiency of contract enforcement. Design/methodology/approach This study uses a quantitative approach applied to a sample of 77 Spanish franchisors operating through 4,064 franchisee outlets across 21 Latin American countries in late 2012. They are: Argentina, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Bolivia, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay and Venezuela. Findings Results conclude that geographical distance between the host and home countries, as well as the level of host country’s political stability, economic development, market potential and transparency are able to drive the spread of international franchising across Latin American nations. Research limitations/implications This study provides readers with a general overview of the current state of global franchising diffusion overseas. Results obtained in this study are useful for understanding and predicting the demand for franchising in Latin American countries. Practical implications Economics reports argue that by 2050, the largest economies in the world will be China, the USA, India, Brazil and Mexico. This fact highlights the substantive importance of Latin America for foreign investors willing to expand their business abroad. In an attempt to give insights from the Latin American context, the present paper develops and tests a model that can be useful to franchisors willing to establish new outlets in the region. In addition, our findings offer guidance to firm managers seeking to target their franchises in Latin America. Franchisors may then use the results of this study as a starting point for identifying such regions whose characteristics best meet their needs of expansion. Originality/value This paper explores how market conditions may drive international diffusion of franchising into Latin American markets. The scant theoretical or empirical attention given to this topic has usually been examined from the USA and British base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system into Latin America as a market for franchising expansion.

Public infrastructure investment and fiscal sustainability in Latin America: incompatible goals?

2014 ◽  
Vol 41 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Luis Carranza ◽  
Christian Daude ◽  
Angel Melguizo
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Latin American ◽  
Public Investment ◽  
Fiscal Rules ◽  
Infrastructure Investment ◽  
Fiscal Consolidation ◽  
Public Infrastructure ◽  
Content Type ◽  
Fiscal Space

Purpose – This paper aims to understand the relationship in developing countries between fiscal consolidation and public investment – a flexible part of the budget that is easier to cut during consolidation effort, but with potentially negative growth effects. Analyzing in detail the case of Peru, the paper explores alternative fiscal rules and frameworks that might help create fiscal space for infrastructure investment. Design/methodology/approach – The paper analyses trends in public and total infrastructure investment in six large Latin American economies, in the light of fiscal developments since the early 1980s. In particular, the paper explores the association between fiscal consolidations (improvements in the structural fiscal balance) and public infrastructure investment rates. In the second part, the paper analyzes recent changes in the fiscal framework of Peru and shows how they were conductive in creating additional fiscal space. Findings – The authors argue that post-crisis fiscal frameworks, notably fiscal rules that are increasingly popular in the region, should not only consolidate the recent progress towards debt sustainability, but also create the fiscal space to close these infrastructure gaps. These points are illustrated in a detailed account of recent developments in the fiscal framework and public investment in the Peruvian case. Originality/value – The paper contributes new evidence to the literature on fiscal consolidation and the composition of government expenditures. While the literature based on evidence from the 1990s has argued that fiscal consolidation plans in Latin America have almost always led to a significant reduction in public infrastructure investment, the paper finds less clear cut evidence when extending the analysis backwards (1980s) and forwards (2000s). The example of the case of Peru is used to explore fiscal institutions and rules that might be useful for other developing countries that face important infrastructure gaps.

scholarly journals Theoretical Framework for Research on Mathematical Olympiads in Latin America

2020 ◽  
Vol 2 (1) ◽  
pp. 25-30
Author(s):  
Oscar F. Bernal Pedraza
Keyword(s):  
Qualitative Research ◽  
Developing Countries ◽  
Latin America ◽  
Latin American ◽  
Theoretical Framework ◽  
Critical Factors ◽  
School Students ◽  
Quantitative And Qualitative Research ◽  
Research Areas ◽  
Latin American Countries

This theoretical framework is intended to serve as guide to research on national Mathematical Olympiads in Latin America. Research with the goal to elucidate critical factors involved in the existence and results obtained by Latin American teams in the International Mathematical Olympiad (IMO) and other international contests, may find a stepping stone in this framework and the references cited in it. From the way local committees see themselves and their indicators for success. to the feedback subsumed in the IMO results, different comparable metrics for success must be developed to understand the specific challenges faced by these organizations and the goals set by themselves and the educational communities in their own countries. As for Latin American countries the IMO is not the only competition they attend or their single metric for success, reference to the IMO is provided as the evolving opportunity leading to the creation of local olympiad committees, the committees this framework presents as an opportunity for research and understanding of the search for talent in developing countries. As a way of closing the document, a few questions are proposed, offering both quantitative and qualitative research areas and with the possibility to reach findings helpful for those organizations, for the school students in their respective countries, and for similar organizations in other countries.

scholarly journals Intangible assets and business performance in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernanda Cristina Lopes ◽  
Luciana Carvalho
Keyword(s):  
Latin America ◽  
Latin American ◽  
Business Performance ◽  
Intangible Assets ◽  
Business World ◽  
Content Type ◽  
Intangible Resources ◽  
New Knowledge ◽  
The Relationship ◽  
Latin American Countries

Purpose The intangible assets of a company have been presented by national and international surveys as a resource to influence the creation of value and the increase in organizational performance. In view of this, this study aims to analyze the relationship between intangibility and the performance of companies in Latin America. Design/methodology/approach For this purpose, multiple regression with panel data was used and three perspectives for measuring intangible resources were defined: representativeness of the intangible asset, accounting measure for measuring the intangible, degree of intangibility and Tobin’ Q, the latter two representing economic and financial measures to determine intangibility. The study covered the period from 2011 to 2017 with a sample of 1,236 publicly traded companies located in some Latin American countries, namely, Argentina, Brazil, Chile, Colombia, Mexico and Peru. Findings The results demonstrated the existence of a significant and positive relationship between the variables of intangibility, degree of intangibility and Tobin’s Q, and the performance variables, return on assets, operating margin and asset turnover, reinforcing the study hypothesis that the greater the investment in intangible resource, the greater the company’s performance. Research limitations/implications The limitations of this study involve the lack of complete information about intangible resources in the financial statements of some companies and some countries, making it hard to analyze the proposed relationship more broadly and accurately. Another limitation involves the causal relationship that may have existed between the regressors of the models defined in the study and their error, thus generating an endogeneity problem in the proposed models. It is recommended for future research to use specific methods to mitigate possible problems of endogeneity in regressions. Practical implications Mainly the possibility of deepening the relationship between intangibility and business performance, thus obtaining new knowledge through the reflexes of this relationship on companies in Latin American countries, finding more consistent results. Social implications The study contributes to the decision-making process in the business world by informing the primary users of accounting information such as investors, administrators, accountants, regulators and creditors. Originality/value This research contributes by addressing a theme whose studies present many gaps, making it possible to deepen the relationship between intangibility and business performance and gain new knowledge through the reflexes of this relationship on companies in Latin American countries.

Informality will limit tax options in Bolivia and Peru

2017 ◽  
Keyword(s):  
Latin America ◽  
Latin American ◽  
Informal Sector ◽  
Income Tax ◽  
Tax Base ◽  
Content Type ◽  
Common Features ◽  
Alternative Sources ◽  
Market Liberalisation ◽  
Latin American Countries

Subject Labour informality and the tax base. Significance Peru and Bolivia are among the Latin American countries with the highest levels of informality in their employment structures. Informality takes various forms, but one of its common features is escape from the tax net. In the pursuit of raising government incomes, various policies are being adopted to draw firms into formality and make them pay income tax and social security contributions. Impacts A large informal sector is likely to persist longer in Peru and Bolivia than most other countries in Latin America. A protracted downturn in tax revenues from extractives may force authorities to tap into alternative sources of revenue. The scale of illicit activity, not least in drug-related activities, will continue to be an obstacle to reducing informality. Political opposition will militate against radical labour market liberalisation.

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