Developments in Latin America and Southeast Asia Essay

Challenges in economy and politics emerged in different part of the world after war against Japan. Development in Southeast Asia and Latin America notably different from others, Standard of living in Latin region significantly much higher than in Southeast Asia (Rozenwurcel qtd. in Grabowski 25). Countries are moving towards Industrialization in different regions, on the other hand protecting local industries against import products through imposition of tariffs and quotas. The inward-oriented development strategy of Latin America brought economic environment which created total productivity that challenge competition, internal and external economic policies, this strategy failed resulted in low productivity of Latin America’s economy. The region of Latin America has abundant land relatively with rich natural resources but a labor-scarce region. Latin American countries decided to shift strategy from inward-oriented to outward-oriented strategy i. e. there is a difficulty in moving towards production of labor-intensive manufacturing goods from production of natural resource-intensive goods (Grabowski 26). Changing strategy has been impossible to attain for Latin America, this would cause extreme devaluation (an official value reduction of a currency) which in fact, devaluation creates inflation in the local economy (Mahon qtd. in Grabowski 26). However Latin America diverge their attention in addressing problems of inequality and population, the capabilities of the region led to their development, this extreme inequality allowed elites to use their power to influence the development of both economic and political institutions, these economic and political rules excluded the continuous population growth and became responsible for wealth and power of the elite (Engerman and Sokoloff qtd. in Grabowski 27). The economy and politics in Latin America strengthened through proper management and enforcement of policies despite of their inability to effective adaptation of outward-oriented strategy. According to Dr. Diouf in his interview about Inequality about development in Latin America, the capable leadership and the necessary political will, the countries of Latin America will be able to rise to the challenges of hunger, malnutrition, inequality and economic problems. World War II paved the way for Asian countries to attain their independence from powerful countries namely United States and Great Britain. In Southeast Asia, development of one country is different from others, but one thing is common that their economic development has been connected with environmental degradation (Iwami 1). Southeast Asian countries like Malaysia, Burma and Singapore achieved independence from British colony while Philippines from the United States, in fact, the abundant natural resources exploited since before 1945. It is much easier to prepare the path towards industrialization if there is a strong agricultural base; countries with rich agriculture become supplier of raw materials and labor to industrial countries. To accelerate development of idle natural resources, governments in the region have been attracting foreign investments which possess plenty of money, modern technology and expertise in management, the region greatly involved in industrialization as producers of raw products and laborers due to global economic interdependence. Many countries in different regions believe that industrialization is their hope for economic liberation from colonial economy and solution to problems of poverty, hunger and diseases. Industrialization has been bringing opportunities for employment, utilization of agricultural resources and fits to the total economic development program of the country. References â€Å"Modes of long-run development: Latin America and East Asia. † 2008. Journal of Institutional Economics. 15 November 2008 . â€Å"Inequality impedes Development in Latin America and Caribbean. † 28 April 2004. Food and Agriculture Organization of the United Nations. 15 November 2008 . â€Å"Economic Development and Environment in Southeast Asia: An Introductory Note. † October 1999. Faculty of Economics, University of Tokyo. 15 November 2008 < http://www. e. u-tokyo. ac. jp/cirje/research/dp/99/cf61/dp. pdf>.