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Great Recession in South America

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Great Recession
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The Great Recession in South America, primarily involved disruptions to the bond markets of Brazil, Argentina, Colombia and Venezuela. As most South American countries are commodity exporters, they were not directly affected by the financial turmoil.[1]

The continent experienced a concurrent agricultural crisis in early 2008.[2] Food prices increased due to use of arable land for the production of biofuels. Second generation biofuel processes increased production sustainability, using biomass from inedible parts of food crops, such as stems, leaves and husks.[3] Other non-food crops, such as switchgrass, grass, jatropha, whole crop maize, and miscanthus could be used to produce biofuels without impacting food production.[3] Industry waste products (such as, woodchips, skins and pulp) also replace the need to waste arable land for biofuels.[3] Food prices, rose significantly from 2002, reaching a peak during the first quarter of 2008, with the average food price rising 50% over one year.

Subsequently, South American countries were affected by the global slowdown and decreased food prices from declining demand.[4] In June 2008, the Economic Commission for Latin America and the Caribbean (ECLAC) expected 4% growth for 2009. However, by year end it predicted 2009 would end the six years of prosperity where Latin America benefited from high raw material prices.[5] The region's production was expected to decline and unemployment to increase.[6][7] The Center for Economic and Policy Research emphasised careful macro-economic policies to mitigate damage, with South American countries increasingly independent of the U.S. economy.[8]

  1. ^ ""Subprime": lejos de A. Latina" (in Spanish). BBC Mundo. August 1, 2007. Archived from the original on 2009-01-13. Retrieved 2010-01-05.
  2. ^ Poverty Declines Slightly in Latin America and the Caribbean, in Spite of Global Financial Crisis Archived 2011-07-20 at the Wayback Machine, ECLAC Notes Nº 59 (9 December 2008)
  3. ^ a b c Oliver R. Inderwildi, David A. King (2009). "Quo Vadis Biofuels". Energy & Environmental Science. 2 (4): 343. doi:10.1039/b822951c.
  4. ^ "Latin America risks reverting progress in poverty reduction / Global financial crisis will affect region's trade with the rest of the world" (PDF). ECLAC. December 2008. Archived (PDF) from the original on 2011-07-20. Retrieved 2010-10-02.
  5. ^ "Preliminary overview of the economies of Latin America and the Caribbean 2008". ECLAC. December 2008. Archived from the original on 2011-07-20. Retrieved 2010-10-02.
  6. ^ "Growth in Latin America and the Caribbean Is Projected to Be 1.9% in 2009". ECLAC. 18 December 2008. Archived from the original on 20 July 2011. Retrieved 2 October 2010.
  7. ^ "Amérique latine : fin de six années de croissance soutenue" (in French). RFI. 2008-12-19. Archived from the original on 2009-02-01. Retrieved 2010-10-02.
  8. ^ "South America: Recession Can Be Avoided". CEPR. November 16, 2008. Archived from the original on January 18, 2009. Retrieved October 2, 2010.

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