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Configuring South
America in
socioeconomic
measures
A BRIEF COMPARISON WITH UNITED STATES
OF AMERICA
SUMRIO
Introduction ..................................................................................................................................................... 4
Chapter I Presenting South America ....................................................................................................5
The South America in terms of Population and Population Distribution ................................5
Analysis of the Spectrum of the other states ...............................................................................5
Analysis of the similarities between South American states and USA .................................7
Analysis of the Nature of Data ..........................................................................................................7
The South America in terms of GDP indexes compared with USA............................................9
GDP Gross Domestic Product ........................................................................................................9
GDP PPP Power Purchase Parity ................................................................................................. 12
GDP Per Capita..................................................................................................................................... 13
GDP Per Capita in PPP ....................................................................................................................... 13
The South America in terms of HDI ................................................................................................... 14
Analysis of the Spectrum of the other states ............................................................................. 14
Analysis of the divergences between the South American states and USA..................... 15
Analysis of the Nature of Data ........................................................................................................ 16
Chapter II - The South America and the Globalization ............................................................... 16
Economic Globalization.......................................................................................................................... 17
Analysis of the Spectrum of the other states / Analysis of the Data .................................. 17
Analysis of the divergences between the South American states and USA..................... 18
Social Globalization ................................................................................................................................. 19
Analysis of the Spectrum of the other states / Analysis of the Data .................................. 19
Analysis of the divergences between the South American states and USA.................... 20
Political Globalization.............................................................................................................................. 21
Analysis of the Spectrum of the other states / Analysis of the Data .................................. 21
Analysis of the similarity between the South American states and USA .......................... 22
Chapter III - The South America in terms of Trade .......................................................................... 23
Analysis of the Spectrum of the other states / Analysis of the Data ................................. 23
Analysis of the similarity between the South American states and USA .......................... 24
Chapter IV - The South America in terms of FDI -Financial Development Indexes ......... 25
Analysis of the Spectrum of the other states / Analysis of Data ......................................... 25
Analysis of the similarity between the South American states and USA .......................... 26
Chapter V South American Social Indexes ...................................................................................... 27
Trust ............................................................................................................................................................. 27
Analysis of the Spectrum of Other States .................................................................................. 27
Analysis of the Nature of Data (explanations for the observed results) ........................... 28
Analysis of the Divergences between South America and USA .......................................... 29
Ethnicity ...................................................................................................................................................... 30
Analysis of the Spectrum of Other States .................................................................................. 30
Analysis of the Nature of Data ....................................................................................................... 30
Analysis of the Similarities between South America and USA .............................................. 31
Language .................................................................................................................................................... 31
Analysis of the Spectrum of Other States ................................................................................... 31
Analysis of the Nature of Data (explanations for the observed results) ........................... 33
Analysis of the Similarities between South America and USA ............................................. 34
Religion ....................................................................................................................................................... 35
Analysis of the Spectrum of Other States .................................................................................. 35
Analysis of the Nature of Data (explanations for the observed results) ........................... 36
Analysis of the Divergences between South America and USA.......................................... 36
Income and Wealthy Inequality .......................................................................................................... 39
Analysis of the Spectrum of Other States .................................................................................. 39
Analysis of the Nature of Data (explanations for the observed results) ........................... 40
Analysis of the Divergences between South America and USA ........................................... 41
Democracy................................................................................................................................................. 42
Analysis of the Spectrum of Other States .................................................................................. 42
Analysis of the Nature of Data (explanations for the observed results) ........................... 43
Analysis of the Divergences between South America and USA .......................................... 43
Voice and Accountability ...................................................................................................................... 44
Analysis of the Spectrum of Other States .................................................................................. 45
Analysis of the Nature of Data (explanations for the observed results) ........................... 45
Analysis of the Divergences between South America and USA.......................................... 46
Rule of Law - Nomocracy ..................................................................................................................... 48
INTRODUCTION
The aim for this paper is to compare the South Americas region with the mostcompared country in the world: the greatest economy in the globe today, United States of
America. The first thing we could, and maybe should explain is: why should we look for
South America? The answer can begin with: This is a region in the globe with as many
economic, social and political problems as potential to growth. The difference to other
regions in the globe with this very same characterization is that the South America is a
region with these kinds of problems caused not only by the economic and/or social
inequalities, but also by historical problems and criminal issues that affects the entire world,
at the same time that is a region that is becoming greater in the international relations,
bringing the attention of the world.
For this configuration of the South America we will use the database that analyses
only the greater states, excluding, by this method, Suriname, Guyana, French Guiana and
Falkland Islands, also called Malvinas, from our list of states. The states that participate in
this brief analysis is, so, Brazil, the greatest state of the region, in almost all terms of
comparison, Argentina, Uruguay, Paraguay, Chile, Bolivia, Colombia, Peru, Ecuador and
Venezuela.
The reason to choose the United States of America as the state to compare with
South America is to show the differences between states located in the same continent,
although in different regions, and the gap between a first world potency with a so-called
third world region, with so much to develop until to reach the status of an economicadvanced region of the globe.
We can notice that South American countries are scattered randomly, and one of
the reasons for it is, possibly, the divergence in each states area. While, for an example,
Brazil is a very large country, with about 8,500,000 km, Ecuador have about 283,500 km.
Uruguay have only approximately 176,200 km.
The table below shows the UNs data provided in its World Population Prospects,
last updated in January, 2014, for the world population, by continent, highlighting South
America.1
In the 2012 Revised World Population Prospect, the UN showed that South
America have, today, about 402-407 million inhabitants, what represents about
approximately 5.74% to 5.81% of the total world population.
In comparison with USA, that have about 320 million inhabitants, the South
America is about 1.25 to 1.27 times more populated.
In terms of population density, the South America have, according the last
available data, about an average density of approximately 58-59 persons/sq mi, against
about approximately 85 persons/sq mi of population density of the United States of
America.
The state with the larger demographic density in South America is Ecuador, with
about 145 persons/sq mi.
After a brief look for the data, we have the following list of countries, with their
respective areas, population and population densities in comparison with USA:
2 The last table is an adaptation of one of the UN Statistics Reports. More details
in the end of this paper.
10
even with the growth rate that Brazil, and all the other South American countries enjoyed
in the last decade (although Brazil has almost stagnated in the last two/three years):
11
amount of US dollars, that are, for effect of comparison, the global attribute used to
compare all kinds of currencies.
12
entered in the graphic because the GDP PPP for the country were not available):
13
(Please notice that economic, social and political data distributed in the central
part of the spectrum of the world HDI ranking, what shows that this Argentina do not
entered in the graphic because the GDP PPP for the country were not available):
14
15
1
0,9
0,8
USA; 0,937
Venezuela; 0,748
Uruguay; 0,792
Peru; 0,741
Paraguay; 0,669
Ecuador; 0,724
Colombia; 0,719
0,3
Chile; 0,819
0,4
Brazil; 0,73
0,5
Bolivia; 0,675
0,6
Argentina; 0,811
0,7
0,2
0,1
0
16
ECONOMIC GLOBALIZATION
ANALYSIS OF THE SPECTRUM OF THE OTHER STATES / ANALYSIS OF THE
DATA
South American countries are scattered randomly in the spectrum of economic
globalization. This reaffirms the fact that South America is a place with many difficult in
terms of the continental economic equality. There are many tries from the South American
governments to promote a greater economic equality, with better opportunities for the
states to compete in the international market, and with many economic associations to
promote the inclusion of the smallest economies of the South America in the continental
market.
17
18
SOCIAL GLOBALIZATION
ANALYSIS OF THE SPECTRUM OF THE OTHER STATES / ANALYSIS OF THE
DATA
In terms of Social Globalization, the South American states are located in the
central position of the spectrum (second and third sections), as seen in the image below:
19
20
This is a kind of social problem that most affects the population of the countries
where the narco activities are concentrated, in the region of the Amazon Rainforest, that
covers an area of approximately 7,000,000 square kilometers (2,700,000 sq mi) along nine
nations.
The graphic blow shows the evolution of the South Americas Social Globalization
in the last decades, from the KOFs database.6
POLITICAL GLOBALIZATION
ANALYSIS OF THE SPECTRUM OF THE OTHER STATES / ANALYSIS OF THE
DATA
Here we see the point where he South America is probably more similar with
United States. In the political globalization spectrum, we can see states like Brazil, Argentina,
and Chile much near from USA, and we can perceive that South America is located in the
central-to-up position of the spectrum.
21
22
23
24
We can see some patterns in the FDI configurations for USA South America
relations. In the greatest part of the analysis, Brazil was nearest of USA than other South
America countries. This, as seemed in the trade patterns, is caused by the special
relationship between Brazil and USA. These states have a particularly interesting economic
and financial relation.
(In the next page, we have the spectrum with the four indexes together, aside, that
shows the south American countries with the USA. Please notice that there are no available
information about FDI Flow Outward for Uruguay and Ecuador. For statistics purposes only,
both countries are presented in the graphic with the value, for this index, fixed as zero):
25
26
27
28
Obs.: The image in the last page shows the slave trade from Africa to the Americas
between the XVI to the XIX centuries. Please take a look in the route. Notice how the
countries in South America that had the greater amounts of slaves were Brazil, followed by
the region that suits Ecuador and Colombia, and compare with the possible explanation of
the slavery generating the violence and social / cultural factors that can affect the trust
levels of these countries. The image was retired from the internet.12
29
ETHNICITY
Ethnicity is an identifier to cultural values, race and socio-cultural experiences.
Ethnic Fractionalization, is an index that measures the degree of Heterogeneity of race
characteristics, for an example, for this parameter in some countries. The Ethnic
Fractionalization dataset that we will analyze here was compiled by Alberto Alesina and
associates, and shows how ethnic conflicts are decisive determinants of public finances.
30
subcontinent haves a pluralism of culture thats very rich and comes from the indigenous
traditions to the African, that went to the America with the slaves.
But even with this pluralism of cultures, races, and origins, many regions of the
South America remain with strong homogenous ethnic groups, principally in the
Amazonian regions, where the indigenous origins are strongly bind to the population.
The pluralism of ethnic groups are stronger in states as Bolivia, Peru, Ecuador,
Colombia and Brazil, because in these countries, the effects of, for an example, the past of
colonization by European countries gave to these countries a singular diversity of cultural
traditions and mix of races and ethnics.
Brazil, for an example, in particular, have great groups of European-originate, or
other stranger-originate groups until today. A proof of this is the probability of two
individuals randomly taken from the Brazilian population are of the same ethnic group:
54%. In the Bolivia, the probability rises to almost 74%. Although, in countries as Paraguay,
by other hand, this same probability is just approximately 17%.
LANGUAGE
Language is an attribute of social, ethnic and cultural values. The language is very
important to determine how the society of a region, or country, or even a group of people
was originated. The origins, the mixtures of different ethnic groups, the flow of migratory
populations and the social globalization, for example, are some variables that can be
accounted, or even observed, leaving in consideration the language patterns.
31
To make a brief analysis for the language fractionalization involving both South
America and United States of America, we must to look to the two available databases, that
are the Desmets and the Ethnologues indexes:
32
33
34
RELIGION
Also is an attribute of social, ethnic and cultural values. The religion is very
important to determine how many societies acts in terms of local laws, trade and businesses
activities, as many other. Is also a question of sociopolitical interest, determining the origins
of many past and/or actual conflicts in the world. Although, it is very difficult to measure
religion affiliation, as we will see now.
35
36
The other countries have majorities of Christians, but from other origins, as the percentage
of Mormons in Peru.
The beauty of the pluralism in South America is the diversity of religions been
practiced peacefully. In Colombia, from and example, there are many communities of
Muslims, Buddhists, and many other. In Brazil, that is one of the only countries that wasnt
colonized by the Spanish Conquistadors, there are an even more diverse quantity of
religions, many of this brought by the African Slaves since the XVI century.
There are also a specifically interesting quantity of Indigenous Religions in the
subcontinent, that survived the Christian impositions from the Spanish and the
Catechization of the Portuguese.
Accordingly the Gallup maps for a poll developed in 2008 where they asked for
the Importance of Religion in the Life, about 65% of the North Americans asked yes 15.
The same question in South America resulted an average of 70 to 80%, as shown
in the following map, retired from the Gallup website:16
37
38
and the poorest, or even by the Gini Index (also known as Gini coefficient or ratio) provided
by the World Bank, where 0 represents 100% of equality, while an index of 100 implies 100%
of inequality, the Income and Wealth Inequality are economic topics of extreme importance
for the social politics, for macroeconomics and for the determination of wealth distribution.
39
A brief analysis of the spectrum for the available states, however, shows that South
American countries are disposed from the middle to the top of the Gini Index Spectrum,
what means that there are more Income and Wealth Inequality in the subcontinent than in
other parts of the world.
40
41
DEMOCRACY
Measured by statistical methods than involves polls made with experts in
governance, the Democracy is crucial to help the Economic Growth, linking political and
economic rights, granting property rights, controlling economic sanctions and granting the
good operation of the relations between companies, the State and Society.
42
43
In terms of political rights being disrespected, we see acts from the part of the
previous cited presidents trying to realize their perpetuation in the power, also as modern
dictators. Also Cristina Kirchner, from Argentina, are trying to make constitutional changes
to continues in the power (she is already in her second mandate as President of Argentina).
The following image shows a poll, developed by Latinobarmetro and cited in The
Economist article named A Slow Maturing of Democracy19 shows that South America is
now trusting more in the governments than in the army, however this trust is being
constructed by the rise of a forged Populism.
By other hand, in USA, complex poltical structures assures that the Power will not
be centralized, with the greatest dominance of only two parties, and other three, very little
( for effect of comparison, Brazil have 32), what granty more clear compromises in political
relations. This contributes to the maintenance of the political health of the State, and is the
principal point of divergence between the country and the South American states.
44
another kind of system that values Governance, the World Banks Voice and Accountability
Index, measuring how much people from a country are able to participate in political
activities, and in the political life of their nation.
45
46
The same observation we made about Democracy can be made here, for Voice
and Accountability, for the rest of the South American countries. The rise of the Populism,
aligned with the utilization of the media and a complex apparatus of weakening of the
opposition parties in many states are contributing for the decreasing levels of freedom of
expression, freedom of speech and the ensuring of rights, many of them fundamental, in
many states.
47
48
49
50
CONTROL OF CORRUPTION
Based in many variables as Democracy and Rule of Law indexes, Control of
Corruption measures, from the data as the provided by institutions like Transparency
International, with its own index named Corruption Perception Index and many others. It
tries to measures how many efforts are the government doing for to control the corruption
activities inside its power.
American countries are scattered randomly along it. We also notice how there is some kind
of pattern between USA and South America comparing the spectrum with the other from
Democracy and Rule of Law.
51
World Bank compiles its index using the very same list of 31 different sources,
putting aside many variables. Accordingly the bank, Control of corruption captures
perceptions of the extent to which public power is exercised for private gain, including both
petty and grand forms of corruption, as well as "capture" of the state by elites and private
interests.
Looking for the spectrum, is easy and interesting to observe how only Uruguay
and Chile are in the positive axis at the index, and very near from the top and, consequently,
from USA.
By the fact of the bank compiles its database using many kind of different sources
and because many of them by itself are very trustable, we have no reasons to distrusts the
World Banks Control of Corruption index.
52
53
CONCLUSION
In general, South America is a very large subregion, in many aspects: economic,
social, cultural and political, as some examples. There are a kind of plurality of
interconnected characteristics that makes the South America appears a unique place.
The social divergences are enormous, the economical, so, even larger. The
distance between the subregion and the USA, and all the rest of the first world, of the
developed countries, remains very large.
At this point you could be thinking why Brazil was so cited, or why this country
appeared so much into the indexes, into the graphics or into the text. There is a good
reason for it: the country is the great factor that affects the entire subregion. With a GDP
that comprehends about 60% of the total South Americas GDP, is clear the reason with the
country have special relations with USA, more than the other countries in the region. Brazil
is, although, very criticized, and feels the weight of the responsibility of to be the great
power on the economy, politics and sociology of the South America.
Indeed, the subregion is, as said, very large, and the difficulty to configure it, is as
hard as extensive.
We looked for South America and United States of America with a different
perspective. In this assignment, we perceived many configurations for the subcontinent and
the world potency with critical eyes and put them aside.
The objective, that was to measure the distance between the also named first
world and the third world, was achieved, and we had the opportunity of to see how much
the region is delayed in comparison with USA.
Both regions, although, have a similar past of slavery, misery, suffering and
economic dependence and delay, what make us to think: what happened with them to have
all this distance between them? Perhaps that the answer could be as diverse as the culture,
ethnicity and the pluralism of social attributes of the South America, a land that combines
the old and the new, the necessity and the desire for growth with the maintenance of the
traditions. A land where hundreds of languages and dialects are spoken, and things are so
fast in some parts than slow in others. The land of the diversity, a diversity that belongs only
for the subcontinent.
The past of suffering appears to be traced in the faces of its inhabitants, showing
to the world that the growth can be slow, but the subcontinent is trying to put its position
into the geopolitics.
54
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________________________
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________________________
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________________________
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________________________
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________________________
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6
________________________
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7
________________________
55
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11
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12
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14
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17
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19
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57