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I have recently started studying about Latin America and particularly the Brazilian Auto industry which is a good case study for what has happened through most of South America that is an economic boom and their arrival on the global market as a strong competitor.
To put this in perspective I've recently been studying the Brazilian automobile industry.
Recently their economy was tanking so they set up a tripartite system in which the representatives from the labor, capital, and state agencies set up a forum in 1992 (called the Sequotor forum).
In this forum they discussed matters of the economy instead of just allowing the market to solve its own problems.
It gave everyone a voice but also the state legalized monopolys for bussinesses.
This system was very similar to European socialism and FDR's New Deal it brought them out of there economic depression, however, the lack of competition, which is the engine that makes an economy run, caused stagnation of the economy. This in turn caused serious inflation (which simply put decreases the value of currency like in the Soviet Union just before their economy collapsed)
In 1993 they realized that reform was necessary so they deregulated the market to allow for competition, since then their economy has sky rocketed and has not gone down below the initial boom that had occured during the socialist reforms.
Since then they have embraced the free market and are competitive on a global scale.
Brazil along with Argentina led the way in the formation of the Mercosur (common market of the south) trading block under the treaty of Ascuncion along with Paraguay Uraguay and now Venezuela.
Since then other countries, such as Mexico, and other trading blocks, such as the EU, have been allowed to have associate member status under the Orarau Preto treaty of 1995.
These trading blocks are finally tearing down the provincional borders which Latin America resulted to following their independence from Spain. It seems that finally after 200 years Bolivarios dream of a Unified Latin America is becoming a reality.
It's a very exciting time for Latin America, their economies are booming and Democracy is flourishing in a region that has long been plagued by tyranical militant regimes.
This is why I believe that if you give people a free market Democracy will be the natural progression, so, when people critisize China as being communist I say just give it time.
Now my question is should we enter into a major trading agreement b/w all the nation of the Americas both North, South and Central, as well as major economic powers in Asia, such as, Japan, and much of South East Asia and Australia?
It seems to me that if this this major trading agreement could be reached our economies would soon come to dwarf by comparison the EU (and hay while we're at it we could give them assosiate status) and this would, also, force China to allow for even more economic and political reforms to compete.
It's been said that the major obstacle to an FTAA (Foriegn trade of the Americas Agreement) has been the American people and Washington themselves, because they are skeptical of the stability of the members economies, however, I feel that the EU as a model, that in such an agreement the benefits would outway the disadvantages.
So hopefully after the success of NAFTA and hopefully CAFTA (knock on Wood) the American people will realize that it will be good for all parties involved, especially the U.S..
To put this in perspective I've recently been studying the Brazilian automobile industry.
Recently their economy was tanking so they set up a tripartite system in which the representatives from the labor, capital, and state agencies set up a forum in 1992 (called the Sequotor forum).
In this forum they discussed matters of the economy instead of just allowing the market to solve its own problems.
It gave everyone a voice but also the state legalized monopolys for bussinesses.
This system was very similar to European socialism and FDR's New Deal it brought them out of there economic depression, however, the lack of competition, which is the engine that makes an economy run, caused stagnation of the economy. This in turn caused serious inflation (which simply put decreases the value of currency like in the Soviet Union just before their economy collapsed)
In 1993 they realized that reform was necessary so they deregulated the market to allow for competition, since then their economy has sky rocketed and has not gone down below the initial boom that had occured during the socialist reforms.
Since then they have embraced the free market and are competitive on a global scale.
Brazil along with Argentina led the way in the formation of the Mercosur (common market of the south) trading block under the treaty of Ascuncion along with Paraguay Uraguay and now Venezuela.
Since then other countries, such as Mexico, and other trading blocks, such as the EU, have been allowed to have associate member status under the Orarau Preto treaty of 1995.
These trading blocks are finally tearing down the provincional borders which Latin America resulted to following their independence from Spain. It seems that finally after 200 years Bolivarios dream of a Unified Latin America is becoming a reality.
It's a very exciting time for Latin America, their economies are booming and Democracy is flourishing in a region that has long been plagued by tyranical militant regimes.
This is why I believe that if you give people a free market Democracy will be the natural progression, so, when people critisize China as being communist I say just give it time.
Now my question is should we enter into a major trading agreement b/w all the nation of the Americas both North, South and Central, as well as major economic powers in Asia, such as, Japan, and much of South East Asia and Australia?
It seems to me that if this this major trading agreement could be reached our economies would soon come to dwarf by comparison the EU (and hay while we're at it we could give them assosiate status) and this would, also, force China to allow for even more economic and political reforms to compete.
It's been said that the major obstacle to an FTAA (Foriegn trade of the Americas Agreement) has been the American people and Washington themselves, because they are skeptical of the stability of the members economies, however, I feel that the EU as a model, that in such an agreement the benefits would outway the disadvantages.
So hopefully after the success of NAFTA and hopefully CAFTA (knock on Wood) the American people will realize that it will be good for all parties involved, especially the U.S..
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