Latin America and shifting wealth

This chapter analyses how economic development in Latin America is being influenced by the contemporary global context, in which global wealth is shifting towards emerging economies. It begins by explaining the main characteristics of this shift, in which China is playing a key role. It then assesses Latin America’s role in the process and some of the consequences that the shift is having on the region’s development model. The new global economic context is shaping an environment that makes it particularly difficult for Latin America to continue its structural transformation, overcome the middle-income trap and make its growth more inclusive. Finally, faced with the prospect that the global scenario will not change much in the near future, the chapter proposes various policy options to enable international integration in a way that fosters the region’s development: creating a more diversified production structure, enlarging the regional market, and capturing value added in the production chain.