The Dawn of Latin America\u2019s Decade<\/span><\/strong><\/p>\nWhile the United States and Europe fret over huge deficits and threats to a fragile recovery, this region has a surprise in store. Latin America, beset in the past by debt defaults, currency devaluations and the need for bailouts from rich countries, is experiencing robust economic ![\"\"](\"http:\/\/www.enxmag.com\/ENXMEXICO2011\/early%20morning%20dawn.jpg\")
growth that is the envy of its northern counterparts. The International Monetary Fund used to bail out deadbeat nations in Latin America. Now, in a role reversal, the IMF\u2019s new director, Christine Lagarde, is seeking the region\u2019s help in containing Europe\u2019s worsening debt crisis. Officials in Brazil, now the world\u2019s seventh-biggest economy, say they\u2019re putting together an IMF loan. And the IMF believes the whole region can provide Europe with lessons on how to manage the economy. How and why did this regional transformation take place?<\/p>\n
\u201cOur region is growing in global strategic importance while remaining a region of diverse opportunities and challenges,\u201d said Marisol Argueata de Barrillas, senior director and head of Latin America for the World Economic Forum. There is growing consensus that the coming years will the \u201cLatin America\u2019s decade.\u201d<\/p>\n
Strong demand in Asia for commodities like iron ore, tin and gold, combined with policies in several Latin American economies that help control deficits and keep inflation low, are encouraging investment and fueling much of the growth.<\/p>\n
Recent growth spurts around Latin America have surpassed the expectations of many governments themselves. Brazil, the region\u2019s rising power, is leading the regional recovery; their economy grew 7.5 % in 2010, the nation\u2019s fastest expansion in 24 years.<\/p>\n
Latin America\u2019s GDP has grown at higher rates than the world average of the past seven years. From 2011 through 2015, the IMF estimates that Latin America\u2019s will grow an average of 4% annually. That compares with an estimated 2.7% in the United States and 2.1% in the EU during the same five-year period.<\/p>\n
A region that had become a caricature of itself — the place that gave us words such as junta and banana republic — attained a new level of political and economic maturity. Most countries found a workable economic formula, addressing poverty without repelling investors. In most nations, democracy grew strong roots.
\nNot everyone has ignored the Latin American miracle. China has been busy developing diplomatic relations and increasing economic ties. During years when the United States paid little mind to relations with Latin America, home to 600 million people with economies worth $5 trillion, Beijing set their sights on the American hemisphere. Beijing engaged in an aggressive economic push, becoming a top customer for Latin American natural resources, loaning billions, developing infrastructure and building trade ties.
\nThe results have been spectacular. China wows the world with double-digit economic growth, and Brazil has suddenly become the world\u2019s seventh largest economy, on its way to displace the U.K. as the sixth. Brazil\u2019s Gross Domestic Product grew 7.5% last year. Argentina\u2019s soared 9.2%. Others expanded just as fast. Paraguay\u2019s GDP climbed a stunning 15% and Uruguay\u2019s more than 8%.<\/p>\n
Two \u2013Track Trajectory<\/strong><\/p>\nThere are two groups that make up the region overall. The Brazilian cluster includes most of the countries in South America. The Mexican cluster includes Central America and most of the Caribbean, which are generally commodities importers and are undergoing a slower recovery, mostly because of their greater trade exposure to the U.S. and other industrialized markets.<\/p>\n
Overall, countries in the Brazilian cluster have reaped the benefits of the commodity super-cycle. Prices of both soft and hard commodities have swiftly recovered following the 2008-09 slump thanks to strong Asian (and domestic) demand, and are expected to stay high. Reports state that the price of oil, metals and foods are 23%, 8% and 35% higher, respectively, than prevailing levels in 2006.<\/p>\n
Southern American countries are strong exporters of agricultural products, such as soy and wheat, while Andean countries, such as Chile and Peru, are important world exporters of metals such as copper and gold. The Brazilian cluster\u2019s reliance on China has grown, and the Asian powerhouse is now Brazil\u2019s top trading partner. China is the second-most-important trading partner overall for Peru, and is Chile\u2019s top export destination.<\/p>\n
The rebalancing of the global economy has favoured those Latin American countries that have developed ties with leading Asian and other BRIC (Brazil, Russia, India and China) emerging markets. The trend in terms of trade has accelerated rapidly. While Brazilian exports to China, India and Russia only accounted for 9% of Brazil\u2019s overall foreign sales in 2006, the proportion almost doubled (to 17%) in 2009. Mexico\u2019s exports to the BRIC countries accounted for just 3% of its total in 2009 (91% of Mexico\u2019s foreign sales were directed to industrialised countries, mostly to the U.S.).<\/p>\n
Expectations of future growth performance further underscore the importance of the ties to emerging markets: market forecasts for average growth of the Brazilian cluster countries are significantly better (at 4.4%) for 2010-11, according to reports, than for the Mexican cluster (2.7%).<\/p>\n
The Mexican cluster bears other differences. Besides mostly being importers of commodities (although Mexico exports oil) and relying more on the U.S. and the EU as export markets, they are also dependent on these countries for foreign direct investment, tourism and remittances income. With U.S. and EU growth subdued, these countries have bounced back from recession more slowly.
\nAt the same time, the Mexican cluster is far more vulnerable to competition from China, both in its export markets and at home. Many of the manufactured goods produced and exported by Mexico and the Central American and Caribbean countries, such as apparel and other goods assembled in export-processing zones, have been losing market share to more competitive Chinese goods for some years.<\/p>\n
Transformation of the Imaging Industry<\/strong><\/p>\nOne needs to look no further than a company like Xerox to see that they are trying to transform into a services-based business, as the rise of digital technology has cut into companies traditional hardware line.<\/p>\n
\u201cIn three years, two-thirds of company revenue will likely come from services or contracts to manage other companies\u2019 back office operations such as printing, human-resources and other areas of their business,\u201d stated Xerox CEO Ursula Burns.<\/p>\n
The cornerstone of Ms. Burns\u2019s strategy, Xerox\u2019s 2010 acquisition of Dallas-based services company Affiliated Computer Services for $6.4 billion, was initially criticized by shareholders and industry observers for being too costly in the midst of a recession and too large\u2014ACS had 74,000 employees to Xerox\u2019s 54,000 at the time.<\/p>\n
A year later, the 52-year-old Ms. Burns has been lauded for the move. The service side of the business now brings in nearly half of the company\u2019s total revenue. Profits in the services segment were $266 million in the first quarter, up from $203 million the previous year.<\/p>\n
But part of any of the manufacturers focus to transformation will be targeting growth in the emerging markets. Example; where does Xerox want a greater presence?<\/p>\n
When posed this question in July of this year by the Wall Street Journal Ms. Burns stated, \u201cBrazil. We have a good brand in Brazil, but our ability to extend our reach in the document technology outsourcing space and definitely in BPO (business process outsourcing) are really something that we\u2019re pushing hard. It\u2019s a relatively untapped, underdeveloped market and we have a good position there. Mexico is next. We\u2019re well positioned and have a strong team operating there so we\u2019ll do the exact same thing.\u201d
\nWSJ: Are countries you\u2019re pinpointing attractive because they have [multinational corporations], or because of small local businesses?<\/p>\n
Ms. Burns: They have multinationals there, they have governments that are fairly well-organized and rule of the law counts, and they need these services themselves. They also have a good, small and midsize business growth. One of the biggest providers of services in [Brazil and Mexico] is Telef\u00f3nica. It\u2019s huge. We should be able to do business there with Telef\u00f3nica, which we\u2019re trying to do. Another business is Banco Santander. So we\u2019ll follow Telef\u00f3nica and Banco Santander and we\u2019ll provide to them.<\/p>\n
Closing <\/strong><\/p>\nFor vendors and service providers looking to diversify their product and services reach into alternative and lucrative global markets, Latin America is a prime target for profitable business growth over the next ten years. To develop a better understanding of the opportunities and challenges for solutions and services in Latin America, traditional imaging industry manufacturers are investing resources into getting the pulse of this Latin American market to capitalize on end-user behavior and buying patterns, which are unique in each of these regions, and understanding these differences is critical for business growth.<\/p>\n
Contact David Ramos at david@enxmag.com<\/a> for more information.<\/p>\n","protected":false},"excerpt":{"rendered":"Mientras que los Estados Unidos y Europa enfrentan un d\u00e9ficit enorme y tienen la amenaza de una d\u00e9bil recuperaci\u00f3n, esta regi\u00f3n tiene una sorpresa guardada. Latinoam\u00e9rica, acosada en el pasado por deudas impagables, devaluaciones monetarias y la necesidad de rescates financieros por parte de los pa\u00edses ricos, est\u00e1 experimentando un crecimiento econ\u00f3mico que es la envidia de sus contrapartes del norte. El Fondo Monetario Internacional, utilizado para rescatar a los pa\u00edses que cayeron en recesi\u00f3n de pagos en Latinoam\u00e9rica, ahora, realiza en un rol diferente. La nueva directora del FMI Christine Lagarde, est\u00e1 buscando la ayuda de la regi\u00f3n Latinoamericana para contener la peor crisis de Europa. Los oficiales en Brasil, ahora la s\u00e9ptima econom\u00eda mas grande del mundo, mencionan que est\u00e1n colocando prestamos en el FMI. El FMI cree que la regi\u00f3n completa puede proporcionar a Europa lecciones de c\u00f3mo manejar la econom\u00eda. \u00bfC\u00f3mo y porque esta transformaci\u00f3n regional se llev\u00f3 a cabo? \u201cNuestra regi\u00f3n est\u00e1 creciendo en importancia estrat\u00e9gica mundial, aun cuando la regi\u00f3n presenta diversos desaf\u00edos y oportunidades, \u201cmenciona Marisol Argueata de Barrillas, director s\u00e9nior, y cabeza del foro econ\u00f3mico mundial para Latinoam\u00e9rica. Hay un consenso creciente que los a\u00f1os por venir ser\u00e1n \u201cla d\u00e9cada de Latinoam\u00e9rica.\u201d la fuerte demandan en Asia de insumos b\u00e1sicos como el acero, esta\u00f1o y oro, combinado con diversas pol\u00edticas de las econom\u00edas de los pa\u00edses Latinoamericanos que ayudan a controlar los d\u00e9ficit y mantienen la inflaci\u00f3n baja, est\u00e1n impulsando las inversiones y alimentando el crecimiento. Las \u00faltimas fases de crecimiento alrededor de Am\u00e9rica Latina han sobrepasado las expectativas de muchos gobiernos. Brasil, la Naci\u00f3n con mayor crecimiento, es l\u00edder de crecimiento de la regi\u00f3n; su econom\u00eda creci\u00f3 7.5 por ciento en el 2010, la mayor fase de expansi\u00f3n en 24 a\u00f1os. El PIB de los pa\u00edses latinoamericanos ha crecido a tasas m\u00e1s altas que el promedio mundial en los \u00faltimos siete a\u00f1os. Del 2011 al 2015 el FMI estima que la regi\u00f3n de Latinoam\u00e9rica crecer\u00e1 a un promedio de 4 por ciento anual. Esto se compara con un estimado del 2.7 por ciento para Estados Unidos y el 2.1 en la UE durante el mismo periodo de cinco a\u00f1os. Una regi\u00f3n que se hab\u00eda convertido en una caricatura de s\u00ed misma \u2014el lugar que nos dio palabras como junta y republica bananera\u2014ha obtenido un nuevo nivel de maduraci\u00f3n pol\u00edtica y econ\u00f3mica. La mayor\u00eda de los pa\u00edses encontraron una formula econ\u00f3mica funcional, haci\u00e9ndose cargo de la pobreza sin ahuyentar a los inversionistas. En la mayor\u00eda de las naciones, la democracia se arraigo fuertemente. No todo el mundo ha ignorado el milagro Latinoamericano. China ha estado ocupada desarrollando relaciones diplom\u00e1ticas e incrementando los lazos econ\u00f3micos. Durante a\u00f1os cuando los Estados Unidos no tomaron en cuenta a Latinoam\u00e9rica, hogar de 600 millones de personas con econom\u00edas que valen 5 trillones, Beijing volteo sus ojos al hemisferio Americano. Beijing se comprometi\u00f3 en un impulso econ\u00f3mico agresivo, convirti\u00e9ndose en cliente preferencial de los recursos naturales de Latinoam\u00e9rica, haciendo prestamos billonarios, desarrollando infraestructura y construyendo tratados comerciales. Los resultados han sido espectaculares. China ha sorprendido al mundo con crecimientos econ\u00f3micos de dos d\u00edgitos, pero Brasil se ha convertido en la s\u00e9ptima econom\u00eda del mundo, y esta por desplazar al Reino Unido de la sexta posici\u00f3n. El Producto Interno Bruto de Brasil creci\u00f3 7.5 por ciento el a\u00f1o pasado. Argentina el 9.2 por ciento. Otros pa\u00edses crecieron as\u00ed de r\u00e1pido el PIB de Paraguay aumento la impresionante cantidad del 15 por ciento y Uruguay m\u00e1s del 8 por ciento. Trayectoria de dos v\u00edas Hay dos grupos que forman la regi\u00f3n: El \u201cCl\u00faster Brasile\u00f1o\u201d formado por pa\u00edses de Am\u00e9rica del sur y el \u201cCl\u00faster Mexicano\u201d formado por los pa\u00edses de Am\u00e9rica Central y el Caribe, estos \u00faltimos son importadores de materias primas y tienen una recuperaci\u00f3n m\u00e1s lenta, en general, debido a sus tratados comerciales con los Estados Unidos y otros pa\u00edses industrializados. El cl\u00faster Brasile\u00f1o se ha beneficiado del s\u00faper ciclo de los productos primarios. Los precios tanto en bienes blandos como duros se han recuperado despu\u00e9s de la depresi\u00f3n del 2008-09 gracias a la fuerte demanda de Asia (y domestica) y se espera que permanezca alta, los reportes establecen que el precio del petr\u00f3leo, metales y alimentos son 23 por ciento, 8 por ciento y 35 por ciento m\u00e1s altos, respectivamente, que los niveles prevalecientes en el 2006. Los pa\u00edses de Sudam\u00e9rica son exportadores fuertes de productos agr\u00edcolas, como la soya y el trigo, mientras que los pa\u00edses andinos, como Chile y Per\u00fa, son importantes exportadores mundiales de metales como el cobre y el oro. La confianza del cl\u00faster Brasile\u00f1o en China ha crecido, y el poderoso pa\u00eds asi\u00e1tico es ahora el socio comercial mayor de Brasil. China es el segundo socio comercial m\u00e1s importante de Per\u00fa, y el mayor destino de exportaci\u00f3n de Chile. El rebalanceo de la econom\u00eda mundial ha favorecido a los pa\u00edses latinoamericanos que han desarrollado lazos con pa\u00edses l\u00edderes de Asia y otros mercados emergentes, el llamado bloque BRIC (Brasil, Rusia, India y China). La tendencia en t\u00e9rminos comerciales ha aumentado r\u00e1pidamente, mientras que las exportaciones brasile\u00f1as a China, India y Rusia solo representaban el 9 por ciento del total de las ventas en el 2006, en el 2009 el porcentaje se duplic\u00f3 (17 por ciento). Las exportaciones de M\u00e9xico a los pa\u00edses BRIC fueron solo del 3 por ciento del total de las ventas del 2009 (91 por ciento de las ventas for\u00e1neas de M\u00e9xico fueron a pa\u00edses industrializados, principalmente Estados Unidos) Las expectativas del desempe\u00f1o de crecimiento futuro subrayaron la importancia de establecer lazos con los mercados emergentes: los pron\u00f3sticos del mercado para el promedio de crecimiento del cl\u00faster Brasile\u00f1o son significativamente mejores (4.4 por ciento) para el periodo del 2010 al 2011, de acuerdo con reportes, que para el cl\u00faster Mexicano (2.7 por ciento). El cl\u00faster mexicano enfrenta otras diferencias. Adem\u00e1s de ser importadores de materias primas (aunque M\u00e9xico exporta petr\u00f3leo) y confiando mas en los Estados Unidos y la Comunidad Europea como mercados de exportaci\u00f3n. Tambi\u00e9n dependen de […]<\/p>\n","protected":false},"author":27,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2238],"tags":[],"_links":{"self":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/12818"}],"collection":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=12818"}],"version-history":[{"count":4,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/12818\/revisions"}],"predecessor-version":[{"id":12831,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/12818\/revisions\/12831"}],"wp:attachment":[{"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=12818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=12818"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=12818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}