La Plaza

News from Latin America and the Caribbean

« Previous | La Plaza Home | Next »

Latin America has reasons to worry about U.S. financial crisis


After being lectured for 20 years about the superiority of the free market, officials in Latin America see no small irony in the effort to bail out the U.S. banking system, writes Chris Kraul from Ecuador.

Latin America has several reasons to worry about the U.S. economic meltdown. Ecuador, for instance, fears the possible loss of duty-free export markets for its coffee, fish and flowers.

People here are also worried the crisis will cut into the $2 billion in annual remittances sent home by Ecuadoreans living in the U.S., and wonder whether the nation's use of the dollar as the national currency, a move made in 2000 to curb inflation, still makes sense.

But there is an undercurrent of schadenfreude when it comes to America's pain. Commentator Boaventura de Sousa Santos scolded the United States for its "ironhanded evangelizing" that free markets, privatization and deregulation were innately more virtuous than "corrupt and efficient" state-run economies.

"Millions were thrown into unemployment, lost their land and labor rights and had to emigrate," the Portuguese-born Santos wrote in an article widely distributed over the Internet.

Read more about how the United States woes are also Latin America's problems.

Click here for more on business.

-- Deborah Bonello in Mexico City

Photo: Stock traders negotiate at the Mercantile & Futures Exchange in Sao Paulo, Brazil, last week. Credit: Mauricio Lima / AFP / Getty Images

Comments () | Archives (2)

The comments to this entry are closed.

The $700B bailout will only cause more debt and devaluation of the $$$$!

Illegal immigration is the 2nd largest industry in Mexico next to oil.

USA it is called outsourcing our economy.


Recommended on Facebook


In Case You Missed It...

Recent News
Introducing World Now |  September 23, 2011, 8:48 am »
'Twitter terrorists' freed in Mexico, charges dropped |  September 21, 2011, 7:03 pm »
Freedom likely for Mexico's 'Twitter Terrorists' |  September 21, 2011, 11:00 am »



About the Reporters
Ken Ellingwood
Daniel Hernandez
Efrain Hernandez Jr.
Chris Kraul
Richard Marosi
Tracy Wilkinson