South America comes of age

This enormous continent from Panama channel to Magellano passage, seventeen million square kilometres like Russian Federation, two time of USA or China seems from many years out of history. This notwithstanding the impressive archeological relics, no one comparable in North America, testimonies of long civilisation times, the half a billion people living there, with a large European immigration, the resources abundance and the existence of freedom and democratic institution from the end of XIX century, a long period. The reason of this shadow presence of South America in the world international affairs are many and complex. Economically is very easy to accuse USA to have colonised this continent after Spain and Portugal, pursuing their objectives and interest, but the domination requires cooperation of dominated and corruption of southamerican political class has been very diffused. Italian immigration was focused on making money to send to Italy, where eventually returning as Genuese and Neapolitan people always were dreaming also through their folklore and music. So the political arena has been left to Sp[anish and Portuguese people more power oriented, but with poor initiative and knowledge, easy opened to dollars of the North. The economic results have been very modest if compared with the natural resources available.Today the yearly GDP per capita, always critiqued as an index, but with few realistic alternatives, goes from 3000$ of Bolivia to the 22000$ of Chile and Argentina, to the 8000$ of Brazil and Peru’. So about half of the results in Europe, mother of that big immigration of ‘800. I remember a flash of my memory visiting a partner consultant in Buenos Ayres: His daughter of 5 years old was entering triumphant in the living room, crying “Papi I took 5 $ from an American tourist.” From the childhood they learn to not trust in their own money. No one wanted pesos and the prices in the dress shopping were changing every hour: I took two Italian dresses for half the price in Milan. Rich people are putting their money in Switzerland.

When UK entered in Common Market, New Zealand was converting its meat export to Japan gaining more money, Argentina was eating its enormous meat production at 2$ per steak in Buenos Ayres restaurants or destroying the production, unable to move in international market with initiative and creativity. Brazil was a ‘promising economy’ forty years ago and so remains today. With this cultural environment it’s very easy for USA utilise local resources at low costs, leaving to local government not so much international space. But today a lot of things are moving because the geopolitical positioning of South America becomes more interesting for the world powers, mainly for China. The run to Arctic routes among Russia, USA, Canada and China, reducing to half the times to European markets, it’s also pushing the crossing of South America to connect Pacific and Atlantic Ocean , the dream of the last desperate trips of Colombo to Venezuela and Mexico. After doubling Panama channel with Chinese capitals, and the projects in Nicaragua and Mexico, even Brazil is studying a multimodal rail and ship connection between the two Ocean and China is investing in Peru harbours to facilitate its commercial penetration, giving also support to Venezuela according a USA circling logistic strategy.

China is covering all the world with its infrastructural projects, like the old Persian and Roman empires. After the investments in Africa, now they will move to South America, a prohibited territory according the old Monroe doctrine. Of course USA will try to contain these efforts, but this strategy, as in Mediterranean Sea, will open new possibilities of those country to return in world history, after a long exile in nowhere, to give their important contribution to restart a development, like the liberism of Milei is doing for most important change of habits of Argentinians, whose mindset remain the major cause of underdevelopment.

Share: