Tuesday, August 29, 2017

Service sector : an alternative path for Latin America economies

When the commodities prices (metals, agriculture and energy) felt ;( 2012 - 2016) , Latin America economies had its own self- inflicted crisis. Most of these economies, were not that much well prepared, as they were for the crisis in in 2008-2009.So external debt increased, fiscal deficit get higher, and economic growth lose its momentum.- It was less than obvious to realize, how far these economics have reached on the development of the services sector. In the first five years of this century (2000-2005), services sector in Latin American economies started out to be more relevant for aggregate value process, which became more deeply active since 2010.So in the year 2011, services sector accounted for 64% of the value added ,in Latin American economies (including those of the Central America), and in 2015, 69% of the labor force; had a job in the service sector, up from 62% in the year 2010.Besides the leading area of services; are the ones which employ higher skilled human capital .Up to 20% of the best qualified human capital in these economies, have an employment in the services sector. ECLAC (2014) This structural change, is not by chance or supported in a transitory situation, like the one to replace job losses in other sector .Instead it looks to follow the usual path, associated to higher stage of economic development. (Levy, E. y Pienknagura, S. (2014)). The implications are wide and promising, given the increasing integration to global markets: a.- In the near future, Latin America economies, can reduce its vulnerability to commodity prices fluctuations.- b.- Latin America economies may be part of the Global value creation, either on its vertical (Retail management development),or the horizontal dimension(Business process outsourcing. knowledge process outsourcing)
Fuente: Latin america´s emergence in global services: a new driver of structural changes in the regiĆ³n? .ECLAC 2014