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12.1 South American Economy - Coggle Diagram
12.1 South American Economy
1. General
The economy of South America comprises approximately 410 million people living in twelve nations and three territories. It encompasses 6 percent of the world’s population.
From the 1930s to 1980s, countries of South America used an economic policy based on development and growth of domestic businesses, which are not competitive with other international industries.
However, this policy created a debt crisis in South America, which was falling further behind Western countries in the past two centuries.
Since 1930, the continent has experienced remarkable growth and diversification in most economic sectors. Most agricultural and livestock products are destined for the domestic market and local consumption.
In the 1990s, countries in South America switched to a Free-Market economy. Major economic activities include agriculture, industry, forestry, and mining.
2. Agriculture
The main agrarian crops are export crops, such as soy and wheat. The production of staple foods such as vegetables, corn or beans is large, but focused on domestic consumption.
Raising livestock for meat exports is important in Argentina, Paraguay, Uruguay and Colombia.
In tropical regions the most important crops are coffee, cocoa and bananas, mainly in Brazil, Colombia and Ecuador.
Traditionally, the countries producing sugar for export are Peru, Guyana and Suriname, and in Brazil, sugar cane is also used to make ethanol. On the coast of Peru, northeast and south of Brazil, cotton is grown.
3. Natural Resources
South America is the southern portion of the landmass generally referred to as the New World, the Western Hemisphere, or simply the Americas.
South America is bounded by the Caribbean Sea to the northwest and north, the Atlantic Ocean to the northeast, east, and southeast, and the Pacific Ocean to the west.
South America is a continent rich in natural resources, including timber, freshwater, fish, rubber, agricultural products such as fruits, nuts, and quinoa, and minerals and metals such as gold, copper, lithium, and silver.
South America also has many commercial farms, especially in Argentina, Brazil, Chile, Uruguay, and Colombia. Grains, such as corn and wheat, are widely grown the former being the general basic food in most countries.
Livestock also forms an important part of South American agriculture.
Some parts of the continent are now industrialized, with modern cities, but the people in rural areas still follow an agricultural way of life.
The wealth of mineral products and renewable resources is considerable, yet economic development in most of the continent lags behind the more industrially advanced regions of the world.
4. Indigenous Peoples and Demographics of the Population
The original inhabitants of South America are believed to have descended from the same Asiatic peoples who migrated to North America from Siberia during the most recent (Wisconsin) ice age.
Few of these peoples, however, survived the arrival of Europeans after 1500, most succumbing to disease or mixing with people of European and (especially in Brazil) African origin.
Although most of Latin America was colonized by Spain, the countries of Portugal and France also had major influences on the region.
The European countries’ demand for free labor led them to engage in the African slave trade.
Millions of Africans were brought over from Africa, which resulted in the African diaspora being so prominent in Latin America.
During the late 18th and early 19th century the people of Latin America began fighting for independence. By 1898, all Latin American countries had become independent nations.
Genetic admixture occurs at very high levels in South America. Mixing: European, sub-Saharan African
While indigenous peoples make up 8 percent of the population in the region, they represent approximately 14 percent of the poor and 17 percent of the extremely poor in Latin America.
Nearly half of Latin America’s indigenous population now lives in urban areas. But even in cities, indigenous people often live in areas that are less secure, less sanitary, and more disaster-prone than non-indigenous urban residents.