A Note on China´s Development Strategy and Latin American Economies

RAMIRO ALBRIEU; GUILLERMO ROZENWURCEL

Buenos Aires

Conferencia; Nuevo Modelo de Desarrollo en China: Implicancias para África y América Latina; 2014

BID y Facultad de Ciencias Económicasde la UBA

Is the Chinese emergence a development opportunity for Latin America? Is it possible to profit from the ?new normal? of the global growth engines having moved to Asia? In what sense the natural resource strategy of development has returned to Latin America? Which are the pros and cons of it? In this paper we advance some evidence and offer some plausible but provisional answers to this questions. The paper reviews the rise of China as a key driver of global growth and the ongoing structural economic changes taking place in its development process (section 2); the impact of this ?new world? driven by Asia on Latin American economies (section 3), as well as three major risks posed to their economic performance by this ?new world?: dependency on natural resources, Dutch Disease, and the Natural Resource Curse (sections 4 and 5). Some preliminary thoughts about future challenges for Latin American economies are reviewed at the end of the paper.