PRESIDENTE Y ECONOMIAS - en suramerica.

[Yañez]

I have to say that you are somewhat wrong with that,
there are countries that are very rich (natural resources) and don't depend foreign investment to grow.

Like which? The countrys with the top incomes are the nordic countries, and they all have people all over the world investing in them. A country could be rich in natural resources, like the U.S or Russia, but theres is always something they don't have. Like I said before, the world is now one.

Also, many economists argue whether its better to have a lot of natural resources at all. They say that statistically, the more resources a country has the higher the chance of corruption, coup, wars and social disorder, compared to countries with few natural resources. Also, they tend to develop a dependency on that resource. Good example is Bolivia, who have much more resources than most of the rest of South America, look where they are.

Google Natural resource curse.

[elbp]

Also, many economists argue whether its better to have a lot of natural resources at all. They say that statistically, the more resources a country has the higher the chance of corruption, coup, wars and social disorder, compared to countries with few natural resources. Also, they tend to develop a dependency on that resource. Good example is Bolivia, who have much more resources than most of the rest of South America, look where they are.

Google Natural resource curse.

It is true that activities related with the exploitation of natural resources are associated with rent-seeking behaviour and the existence of pervasive corruption. It is also true that the benefits of these activities are geographically concentrated thus causing a potential strain in the relations between different regions or ethnic groups. Also, the fact that several countries in LatAm have some sort of federal/federative arrangement may aggravate those concerns since several jurisdictions may have overlapping authority over the allocation of the exploitation rights and permits. Furthermore, the extreme dependence on a few (often a single) commodities that account for most of export revenues poses a wealth of problems for these nations (revenue instability due to variation of terms-of-trade, Dutch disease, etc).

Now, it is my opinion that the significance of this "natural resource curse" has been exaggerated. Despite abundant natural resources, the main causes for corruption, political instability and civil unrest are differences in the levels of GDP per capita, extent and efficiency of democratic checks and balances and historical tradition (including colonial history, legal tradition and even religious beliefs). Blaming the existence of vast renewable and non-renewable natural resource for the persistence of the most pressing problems (after all, this idea of a curse implicitly does that), is narrowminded.

In regards to international trade and foreign investment, it's always been there. The difference is the sheer scale of financial globalisation and the massive increase of traded volumes. From 1860 to 1914, most countries have trade relations with Britain. British investments in foreing countries helped them develop rail networks, the meat industry and later more advanced forms of transport. It also worked as a mechanism of more financial integration between the countries since real flows had to be compensated with financial flows. It was the pinnacle of the system of multillateral trade. Foreign direct investment (FDI) is nowadays probably more important than ever regarding size (percent of GDP). That is not necessarily a bad thing. The national industry argument (import-substitution industrialisation, infant industry, etc) only works if your industries are able to be competitive in the long run withouth any kind of protection alongside the more efficient industries (i.e. can we really think of LatAm countries being competitive in this way in, say, the chemical industry?).

Finally, the benefits of more trade integration and more FDI are ultimately spread unevenly among the population. Some sectors win, some sectors lose out. It is the government's role to redistribute these benefits in such a way that many people will win a little after all it's done and dusted (lower import prices, improved service quality, larger infrastructure, etc). A final comment is necessary on the institutional quality of the recipient countries: the stronger your anti-globalisation stance, the larger the extent of political instability, corruption and autocratic ways, and the deeper the nationalistic bias, the more likely your country is going to be passed on. If that (vital) money for building infrastructure, exploiting natural resources and other mammoth enterprises doesn't come from abroad, where will it come from? The government? --remember the 80's lost decade. Domestic saving and investment? --go check these numbers for LatAm.

Aaargh. I'm off to bed.

[minus]

Danilo

Resources are limited

which is explains why the phenomena of Globalization is taking place. We also need to remember that technology is just as valuable as resources itself.

For example:

Chavez has this oil but doesn't the technology to refine the oil so all he has crude oil. China at the moment can't even refine Venezuelan oil.....

[Guayaquileño]

Ecuador se une a Colombia y Perú para lograr tratado comercial con UE 12:15 |
Los tres países comenzarán mañana en Bruselas la primera ronda de negociación. Bolivia es el único socio andino que ha mostrado su rechazo frontal a emprender negociaciones bilaterales.

http://elcomercio.com/noticiaEC.asp?id_noticia=251689&id_seccion=6

[Danilo-11]

Like which? The countrys with the top incomes are the nordic countries, and they all have people all over the world investing in them.
Interesting that you say that,
because the nordic countries are known for being socialist and having some of the highest taxes in the World. :p

Chavez has this oil but doesn't the technology to refine the oil so all he has crude oil. China at the moment can't even refine Venezuelan oil.....
Uhhhh?

Citgo is 100% owned by PDVSA, Citgo has about 6 refineries in the US, PDVSA has several refineries in Venezuela and I believe has 1 in Aruba and 1 in Norway.

[Yañez]

Interesting that you say that,
because the nordic countries are known for being socialist and having some of the highest taxes in the World. :p


Uhhhh?

Citgo is 100% owned by PDVSA, Citgo has about 6 refineries in the US, PDVSA has several refineries in Venezuela and I believe has 1 in Aruba and 1 in Norway.

True, but they also are known for having a lot of deregulation, not exactly socialist. They also have been steadily lowering their taxes for the past decades. Finally, they have rock bottom entrepreneurship. Most of its companies were created way before even the 1950's. If anything, these countries are monetary capitalists and social socialists.

[minus]

Uhhhh?

Citgo is 100% owned by PDVSA, Citgo has about 6 refineries in the US, PDVSA has several refineries in Venezuela and I believe has 1 in Aruba and 1 in Norway.

The oil located in Orinoco Belt has a heavier syrup like consistency, is harder to refine. It's not the same conventional oil. I forgot to mention how Venezuela doesn't have deep drilling technology to drill the estimated 1.3 Trillion barrels.

:D

In the end, Chavez needs the "empire" .... :p

[Danilo-11]

The oil located in Orinoco Belt has a heavier syrup like consistency, is harder to refine. It's not the same conventional oil. I forgot to mention how Venezuela doesn't have deep drilling technology to drill the estimated 1.3 Trillion barrels.
It's true what you say about the Orinoco Belt oil, but who gives a crap?

Venezuela doesn't have the tecnology to drill????
Where are you getting that from?

I'll put it in few words for you
- Orimulsion = mixture of Orinoco Belt oil and water is a patent of Intevep, subsidiary of PDVSA.
http://www.allbusiness.com/mining/oil-gas-extraction-crude-petroleum-natural/355027-1.html
- My father worked as a petroleum engineer during the 1980s for Intevep and he worked on Orimulsion.

I NEVER heard my father say that Venezuela didn't have the technology to drill extra heavy oil.
He talked a lot about how much extra heavy oil Venezuela has in the Orinoco belt and the fact that it costs more to refine it, but that was it.

[Visca...]

Ecuador se une a Colombia y Perú para lograr tratado comercial con UE 12:15 |
Los tres países comenzarán mañana en Bruselas la primera ronda de negociación. Bolivia es el único socio andino que ha mostrado su rechazo frontal a emprender negociaciones bilaterales.

http://elcomercio.com/noticiaEC.asp?id_noticia=251689&id_seccion=6
Esos Bolivianos...piensan denunciar a Peru ante la CAN por tener el TLC con EEUU :rolleyes:

[minus]

It's true what you say about the Orinoco Belt oil, but who gives a crap?

Venezuela doesn't have the tecnology to drill????
Where are you getting that from?

I'll put it in few words for you
- Orimulsion = mixture of Orinoco Belt oil and water is a patent of Intevep, subsidiary of PDVSA.
http://www.allbusiness.com/mining/oil-gas-extraction-crude-petroleum-natural/355027-1.html
- My father worked as a petroleum engineer during the 1980s for Intevep and he worked on Orimulsion.

I NEVER heard my father say that Venezuela didn't have the technology to drill extra heavy oil.
He talked a lot about how much extra heavy oil Venezuela has in the Orinoco belt and the fact that it costs more to refine it, but that was it.

Do some research on the subject. Venezuela at this point is only capable of drilling about quarter of the 1.3 Trillion barrels available....

[superfrantheman]

Esos Bolivianos...piensan denunciar a Peru ante la CAN por tener el TLC con EEUU :rolleyes:

que nos denuncien, para que despues evo todo huevon diga

YO ME EQUIVOQUE, MI PAPA FIDEL Y MI MAMA HUGO ME DIJERON ESO

[sidspaceman]

Colombia, Venezuela form $200m fund to boost trade (http://www.google.com/hostednews/ap/article/ALeqM5iy-B-7a4K8ylASjAO7pItoObDDZAD95TRNPG0)

[Yañez]

Been reading that Argentina has a high chance to default again despite its economic growth. Would suck for them.

[superfrantheman]

cristina would really be responsible for it... she is not the president, she is still the first lady

[Yañez]

cristina would really be responsible for it... she is not the president, she is still the first lady

Yes but it comes down from the ex-president and the economic policies. It would probably be a domino effect. The highest chances to default are Argentina and none other than Venezuela.

[Yañez]

Well, what will soon be the tallest building in latin america and the second tallest in the southern hemisphere has been postponed here in Chile due to the crisis. Theyre halfway done

[Danilo-11]

Yes but it comes down from the ex-president and the economic policies. It would probably be a domino effect. The highest chances to default are Argentina and none other than Venezuela.
Default on what?
are you pulling that information out of ..... (about Venezuela)

[Yañez]

Default on what?
are you pulling that information out of ..... (about Venezuela)

http://bespokeinvest.typepad.com/bespoke/2008/12/country-default-risk-rises-across-the-board.html


Default Risk on credit.
AKA what happened to Argentina few years ago.

[Danilo-11]

http://bespokeinvest.typepad.com/bespoke/2008/12/country-default-risk-rises-across-the-board.html
Default Risk on credit.
AKA what happened to Argentina few years ago.
If you can give a clear definition of "credit default swap", "credit default swap risk" and how that relates to a country's economy....
I'll say that "Venezuela is a communist country that is going down the toilet"

I was doing so research on that credit default swap and I can't find a clear definition of what it is or how it relates to a countries economy.


Look at this article from Jan 2009
http://www.venezuelanalysis.com/news/4111

International reserves have quadrupled from $10 billion in 1998 to $43 million in 2008 and public debt has decreased by 70%, relative to GDP, he said. Venezuela’s per capita currency reserves are among the highest in the world, at $1,700, which he compared to some other “developed countries” who have per capita reserves of $500.

“The monetary reserves of Venezuela today are sufficient to sustain 2 years of imports, [whereas] there are countries like England whose reserves could only sustain 15 days of imports,” he said.

[Danilo-11]

http://bespokeinvest.typepad.com/bespoke/2008/12/country-default-risk-rises-across-the-board.html
Default Risk on credit.
AKA what happened to Argentina few years ago.
You are mixing things,
Argentina defaulted on their "foreign debt" payments, not on some "credit debit swap" (who knows what the h.... that is)

Argentina to default on World Bank debt (2002)
http://www.highbeam.com/doc/1P1-70311991.html

How's Venezuela doing with it's foreign debt?
http://en.wikipedia.org/wiki/List_of_countries_by_external_debt

Venezuela - $982 mil. per capita.
Colombia - $9,154 mil. per capita
Peru - $13,152 mil. per capita