Two Latin Americas

Synopsis

Divergence between two Latin Americas is highlighted through the contrasting economic trajectories of the Pacific Alliance and Mercosur countries. John Paul Rathbone, Latin America editor for the Financial Times, notes that Mexico, Colombia, Peru, and Chile have embraced liberal reforms, resulting in accelerated growth. In contrast, Venezuela, Brazil, Uruguay, Paraguay, and Argentina, part of the Mercosur trade bloc, have prioritized consumption over investment, leading to stagnation. This economic split became pronounced following the global financial crisis, as the Pacific Alliance capitalized on investment opportunities during the commodity boom.