BY CHRONICLE STAFF
Mexico has become more globalized, while Brazil and Argentina have become less so, the 2007 Latin American Globalization Index shows. And despite the anti-globalization message of Latin American presidents like Hugo Chavez, the region overall continues to become more globalized.
The Latin Business Chronicle index of 18 countries looks at six factors that measure a country's links with the outside world:
- Exports of goods and services as a percent of GDP.
- Imports of goods and services as a percent of GDP.
- Foreign direct investment as a percent of GDP.
- Tourism receipts as a percent of GDP.
- Remittances as a percent of GDP.
- Internet penetration.
Panama once again stands out as the most globalized country in Latin America, followed by Costa Rica, Honduras, Paraguay and Nicaragua. On the opposite end is Brazil, followed by Colombia, Argentina, Venezuela and Guatemala. Neither Haiti nor Cuba were included in the index due to insufficient data. Measured by trade blocks, CAFTA had the highest average score (12.0 points), followed by Mercosur (8.49 points) and the Andean Community (8.14).
All in all, Latin America boosted its score by 1.1 percentage points to an average of 10.21 points. 13 of the 18 countries in this year's index improved their scores, while only five saw declines. Paraguay posted the strongest improvement, while Venezuela saw the worst decline.
Ironically enough, the results show that countries like Bolivia and Ecuador – hostile to free trade – have higher trade per GDP than Colombia and Peru...
Keywords: ALBA, Andean Community, CAFTA, Mercosur