Should Latin America Fear China
نویسندگان
چکیده
This paper compares growth conditions in China and Latin America to assess fears that China will displace Latin America in the coming decades. China’s strengths include the size of the economy, macroeconomic stability, abundant low-cost labour, the rapid expansion of physical infrastructure and the ability to innovate. Its weaknesses stem from insufficient separation between market and state. They involve poor corporate governance, a fragile financial system and misallocation of savings. Both regions also share important weaknesses. The rule of law is weak, corruption is endemic and education is both poor and very poorly distributed. JEL classifications: E66; O57; P52.
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