Fernando M. Reimers et 31.

Activity DE.1.3

Latin America’s New Promise

As an introduction to the semester and to its focus on economic develop—
ment within Latin America, students are asked to read the following articles
and reports regarding the rise of Latin America and the growth prospects for
the region between 2008 and 201 1:

0 an article in the Econamist about Latin America’s economic renais—
sance in the past decade and the potential impediments to growth
(http://Www.economist.com/node/ 16990967)

0 a brief summary of a report by Brookings about how demographics,
China’s slowing growth, and the global-savings level pave the way
for opportunities for growth in Latin America (http://wwwbrook—
ings.edu/opinions/2011/071 1_latin_americas~decade__cardenas.

aspx)

(Note that the teacher should be aware that these pieces may throw up more
questions regarding, for example, the Latin American debt crisis and some
issues around exchange—rate fluctuations. Students should be informed that
they will get answers to some of their questions as they proceed through the

curriculum and answers to others in more advanced economics classes.)

Students will be asked to review these pieces and to divide into groups. Each
group will then pick a few Latin American countries, collect the following
data on the countries, and analyze the relevant historical trends from 1970
to the present day in those countries:

1. GDP of the countries

2. Growth rates of the economies

3. Percentage of GDP attributed to the primary sectors (agriculture
and natural resources), to the secondary sector (manufacturing),

and to the tertiary sector (services) over time

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