2010-2019: The decade of failed expectations

Latin America economices are well endowed to become a magnificient world player. It has a market of 640 million people (2016), and a combined GDP(PPP) of USD 7,5 trillion(2014).Its GDP per capita is USD 8335,00 a 54% below world average(2012) which measure the potential for further increases.So it started the past decade with positive expdectations,GDP growth was 5,9% in 2010,but since 2013 the latin american economies has reached a stagnation stage with GDP average growth of just 0,8% meaning lower real income and harder effort to reduce poverty(still within the range of 30%) and inequality . However, since 2011 commodity prices index decreased and according to some estimations it is expected only in 2020 to get a more stable condition (www.indexmundi.com).Both Lower commodity prices and unstable markets, is a negative mix for pursuing social goals within a path of steady progress.What it is gained in some stage it is loosed in the folowing one.Social goals target like poverty and inequality reduction becomes cyclical.This means that public policies fail to get a steady advance; so it arises the question about the best approach to get faster progress to eliminate those social bads.- It follow that the decade 2010-2019 in Latin America , did not get too much of the initial expectations. However, there also have been sign of progress both in political and social issues: Let check them out a.- There have been an upward movement from poverty to middle class segments in many Latin America countries. Although it may still look like a fragile achievement, the fact is that the incoming decade mean an opportunity to consolidate a stronger middle class segment.- b.- Service sector is becoming increasingly more relevant, so it may be in course of replacing raw materials as the main sources of economic growth.- c.- The key role of good macroeconomic policies is well assumed by policy makers,With few excwptions inflation is non loneger a social constraint for policy design,external debt is within the range of control,and integration into the world markets is also within the target of key Regional economies with free trade up dated agreement including both commercial and financial sectors(Chile, Peru Colombia).- d.- No less important is the fact that most of these latin american economies have stronger democracies than before.It may not be perfect ones but it has the positive side of trying every 4-6 years some alternative approach to move forward, instead of a unique one to get backward. However, there also still some negatives heritages from the past: corruption is on top of the list.For the first time it had a wide scale to become a threath in such a way that it tried if not really captured the State of at least four countries . e.- Following from above (d), the decade 2010-2019 wittnessed in Latin Amwerican economies a better than expected judiciary system, which protected the States in such way that saved the institutions role to be a guarantee for development.The rule of law in Latin American economies become quite clear even in cases of nationalization projects. Thus the decade just gone give a better chance to look forward the next one with new challenges withih a positive framework .Some of them are a.- Demography gap.Younger workers do not match up the demands from older ones on retirement.Social secutiry issues is more than a challenge. b.- The risk of populism is always alive,So the state must assume the need to endure reforms.