Eduardo A. Lora, Interamerican Development Bank
Growth in China and Latin America have made thousands of academics, businessmen and government officials in Latin America to adopt the increasingly popular idea that the growth of this Asian giant will threaten the region’s growth.
In this study, Eduardo A. Lora compares these conditions in order to evaluate the fears of China displacing Latin America in coming decades. China’s weaknesses, such as the lack of separation between State and Market, poor corporate governance and a weak financial system are weighed against the disadvantages of Latin America, including endemic corruption, low levels of education and important entry barriers which limit the region’s innovation and competitiveness.
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