Japan and Latin America

Latin America and the Caribbean basin is a region of vital geoeconomic importance for Japan’s Third World strategy. Although a large percentage of every country in the region remains mired in poverty, the approximately 350 million inhabitants are on average more affluent than in other developing regions, thus presenting relatively larger mass national consumer markets. Also the Latin American countries have a higher level of industrialisation, thus presenting Japanese firms with more potential buyers of sophisticated capital goods. Latin American countries are generally more open to foreign investment, and most of them particularly welcome Japanese investments to offset the historic domination by American investments. The Amazon Basin and other South American countries provide rich treasure troves of natural resources which Japanese mining, logging and oil firms are busily trying to develop. Finally, Japanese corporations can tap into the skills and connections of the approximately one million descendants of Japanese in Latin America who had immigrated from Japan earlier in the twentieth century, some of whom still speak Japanese and can serve as business intermediaries. About one million live in Brazil, followed by 70 000 in Peru, 12 000 in Mexico, 11 000 in Bolivia, 8000 in Paraguay, 2300 in Chile and 1000 in Venezuela.