2008 Vol. 2 Num. 1 - GCG: Revista de Globalización, Competitividad ...

United States and Europe have become a new source of wealth for millions of the region’spoor. And soaring world prices of oil, soybeans, copper and other commodities – alongsideChina’s emergence as a major buyer of the region’s goods - have resulted in an exportbonanza for many Latin American countries.Latin American leaders were exuberant. Venezuela’s narcissist-Leninist President HugoChavez proclaimed that his oil-rich country was not only growing economically, but “socially,morally, even spiritually.” Argentine President Nestor Kirchner assured his countrythat the whole world was marveling Argentina’s impressive economic recovery. Mexico’sthen President Vicente Fox asserted that Mexico was growing “like a locomotive thatafter taking off, starts picking up speed.”Trouble is, Latin America is growing almost exclusively because of external factors, suchas a growing world economy and high commodity prices. And these factors will notlast forever. Latin American leaders’ claims that the region was entering a new era ofprosperity were fairy tales, I argued in the book. Accordingly, the book’s title in Spanishwas “Cuentos Chinos,” and in Portuguese “Contos do Vigario,” both of which translateroughly as “Tall Tales.”While researching the book, I had traveled to places as politically diverse as China, India,Poland, the Czech Republic, Ireland and more than a dozen Latin American countries,seeking to find out why some countries are growing and reducing poverty faster thanothers. And it didn’t take me long to conclude that Latin America suffers from “peripheralblindness” – an excessive focus on its itself, and a failure to realize what is going on inthe rest of the world.Indeed, while Latin America had been growing at a 5 percent annual rates for the pastfew years, China had been growing at 10 percent rates for nearly three decades, Indiahad been growing at about 8 percent rates for a decade, Eastern European economieswere expanding at near 6 percent annual rates, and even Africa had recently grown at 6percent rates. In fact, measured against other developing regions, Latin America is fallingbehind.In terms of poverty reduction, the contrast is even starker. While Asia – which was behindLatin America by most economic standards four decades ago - has reduced poverty from50 percent of its population in 1970 to 19 percent nowadays, Latin America has barelyreduced poverty from 43 percent to 39 percent of its population over the same period,according to United Nations figures.What are Asians doing that Latin Americans are failing to do?, I asked myself. One of thethings I soon discovered in my travels was that while many Asian countries are guided bypragmatism and obsessed with the future, many Latin American countries are guided byideology and obsessed with the past.In China, I saw pragmatism everywhere. Shortly after landing in Beijing, I learned that topgovernment officials had recently welcomed the entire board of directors of McDonald’s.A few weeks earlier, while traveling in South America, I had learned that the Chavez governmenthad proudly announced a three-day suspension of all McDonald’s restaurantsKey wordsLatin America,EmergingCountries,Education,KnowledgeEconomy,PovertyPalabrasclaveAmérica Latina,Países emergentes,Educación,Economía delconocimiento,PobrezaPalavraschaveAmérica Latina,Países emergentes,Educação,Economia doconhecimento,PobrezaJEL CodesO540; 0570;I230; D80035GCG GEORGETOWN UNIVERSITY - UNIVERSIA 2008 VOL. 2 NUM. 1 ISSN: 1988-7116