A Study of the Latin American Economy and the Effects of the Enterprise for Americas Initiative
Davies, Tamara K.
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The following is a detailed report of the Economic conditions of Latin America over the past decade and what the U.S. is doing to aid in the recovery. During the 1980s most Latin American economies experienced periods of high inflation, increasing debt, low domestic and foreign investment and capital flight. More households were living in poverty and social conditions continued to worsen as governments spent less money for programs as health care and education. By the end of the 1980s, Presidents of various Latin American countries sought advice from the United States. In June of 1990, President Bush announced the establishment of the Enterprise for the Americas Initiative. The purpose of this initiative is three-fold. It contains components to promote trade expansion among all countries in the Western Hemisphere; to promote and encourage private investment in Latin America; and to provide debt relief for all Latin American countries. Since the implementation of the Enterprise for the Americas Initiative these countries have experienced declining rates of inflation, increased trade and investment and the return of capital flight. Many of these countries have experienced a real increase in Gross Domestic Product. The increase in U.S. exports to this region have increased the number of U.S. jobs and cut the U.S. trade deficit. It is unclear what approach the new administration intends to take. I hope the U.S. will continue to provide the assistance necessary to ensure prosperity as well as profitable trade and investment between the U.S. and other nations.