The Globalisation and its Implications for the Economic Development of Latin America

The process of globalisation has in several ways an impact on the Latin American Economies. The recent developments give a carefully optimistic view on the economic consequences for these countries. While all of the Latin American nations still lag behind the industrialised countries with respect to their integration into global information networks, the digital divide seems to be narrowing in the near future. Concerning the trade and production structure most countries of the region are moving towards a higher degree of diversity while industrialisation and modernisation are progressing. While capital inflows into the region have spurred growth, the experience of the financial crisis in the emerging markets during the second half of the 90s showed the necessity of creating sound financial institutions. In addition other institutions e.g. in the field of education, administration and jurisdiction have to be built up for ensuring the possible benefits of a globalised world.