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Universiteit Leiden

Configuring South
America in
socioeconomic
measures
A BRIEF COMPARISON WITH UNITED STATES
OF AMERICA

Bruno Rodrigues Candea


Capstone project of the course Configuring the World: A Critical Political Economy
Approach, from Universiteit Leiden Professor Dr. Richard Thomas Griffiths. Specialization
program in International Relations: Challenges in the Global Affairs.

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

Analysis of the Spectrum of Other States .................................................................................. 48


Analysis of the Nature of Data (explanations for the observed results) ........................... 49
Analysis of the Divergences between South America and USA .......................................... 50
Control of Corruption ............................................................................................................................. 51
Analysis of the Spectrum of Other States ................................................................................... 51
Analysis of the Nature of Data (explanations for the observed results) ............................ 51
Analysis of the Divergences between South America and USA .......................................... 53
Conclusion ..................................................................................................................................................... 54
Bibliography .................................................................................................................................................. 55

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.

CHAPTER I PRESENTING SOUTH AMERICA


THE SOUTH AMERICA IN TERMS OF POPULATION AND
POPULATION DISTRIBUTION
ANALYSIS OF THE SPECTRUM OF THE OTHER STATES
Above, there is a graphic that shows the proportion of the size of the population
from each South American country in comparison with United States of America and with
the rest of the world. Please notice that South American countries are in red, and USA is in
black:

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

ANALYSIS OF THE SIMILARITIES BETWEEN SOUTH AMERICAN STATES AND


USA
The map above shows the demographic density in South America, highlighting
the commented fact of the costal concentration of the population from the subcontinent:
In the USA, we can observe that the population is, too, more prone to be
concentrated in the coastal areas of the country. The population from developed countries,
or countries in large development rates, tends to concentrate in coastal areas because the
greater opportunities of businesses also tends to concentrate in these places, principally
because the exportation/importation activities, both essential to the economy, and that are
privileged by port regions, that, obviously, are distributed over the coast. One of the
interesting things about the South America is how the population is distributed: the greatest
part of the population is too on the coastal areas from the subcontinent. Some scholars
explain this as a historical and ethnical fact, where the indigenous population from the
middle of the continent diminished over the centuries since the Americas discovery,
reducing the population in the interior areas of the continent, caused by the advance of
agriculture, livestock, and other subsistence economic activities since the XVI century, in
addition of the mineral extraction that, together, forced indigenous people to leave their
territories and/or decimated tribes along the years, principally in the interior of the South
America, and, since the XVI century, the consolidation of the slavery in countries like Brazil,
what had caused extreme social problems that remains until today in South America, as
social and economic inequality, racism, industrial inefficiency, poverty and violence.
This, by itself, is a crucial point about the South America: the raising violence
caused by the drug trafficking, the piracy and the organized crime are thing that call the
attention of authorities of the entire world, also because this forms of criminality feeds the
crime in diverse regions of the globe: the drug trafficking, for an example, is, publicly, a
problem because the fact that South American drug dealers feeds the European and North
American traffic with tons of drugs every year.

ANALYSIS OF THE NATURE OF DATA


In terms of population, the South America is the fourth more populated subregion
in the world, according the estimative of the UN. The region is located in the American
Continent, with about 17.840.000 km of area. Compared with the United States of America,
that is our comparison state, and that have 9.826.675 km of area, the South America is
about 1.81 times larger.

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.

THE SOUTH AMERICA IN TERMS OF GDP INDEXES COMPARED


WITH USA
GDP GROSS DOMESTIC PRODUCT
ANALYSIS OF THE SPECTRUM OF THE OTHER STATES
As seen in the following spectrum graphic, the South American states are scattered
randomly in the world spectrum for GDP. This shows that the divergence between the
amounts of GDP of each country of South America is enormous, and that confirms the fact
that the subregion is a place of wide inequality of economic power distribution amongst
the states:

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICAN STATES AND USA


The reasons to the gap between the USAs GDP and the South American states
GDP are of many types: historical, economic and political.
Historically, the South America, just like the USA, have a past of slavery and low
development. The difference is when this slavery has finished and what the states did after
the end of the slavery in the respective countries: In USA, after the end of slavery, the
economy, that were based in an agricultural exploratory model, began to turns into an
industrial model, what made the countrys economy to boost over the years.
In South America, although, the agricultural exploratory, or other ways of primary
exploratory models has dominated the economies until the XVI century, first with the
exploration of sugar, after with cotton, gold and other mining economies, coffee and many
subsistence economies, and this scenario was the reality of these countries until the end of
the XIX century. Even so, in countries like Brazil, the industry, that borne in 1880 to 1890 just
had its development after 1930 and, in large scale, after 1950.
This kind of delay in the development of the industry is one of the causes of the
infrastructure problems, as much as other economic and social problems, that configures
the reality of the South America today.

ANALYSIS OF THE NATURE OF DATA


The South America total GDP is an amount of about US$ 4,359,635,328,270. Even
so, this is only about a third part the North American economy (USA is about 3.85 times
greater than the entire South America!) The USA, that in 2013 had a GDP of US$
16,800,000,000,000, is the greatest economy in the world, leader of the ranking provided
by the World Bank, from which database the table below was constructed, showing the
GDP of South America by country, and the United States:

10

The greatest economy of the South America is Brazil, an under-development


country that is part of the BRICS block and that, last year, was the seventh greater economy
in the world. If we take Brazil and United States, although, we see the disparity between
these two countries: The United States is about 7.48 times greater in terms of GDP. This
proves that the distance between the first world to the third world remains immense,

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

GDP PPP POWER PURCHASE PARITY


This rate is most used by economists that wants to measure the real GDP per
capita welfare, and/or the equality, or the inequality of living conditions and price levels
between two or more economies. In the graphic below, there is the comparison between
the GDP PPP level from the USA, that is, for ways of consulting, the attribute that we use to
compare PPP, with each one of our researched countries.
(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):
This means, briefly, that is much more expensive to buy a certain kind of basket of
goods and services in countries of South America than in the United States, with the same

amount of US dollars, that are, for effect of comparison, the global attribute used to
compare all kinds of currencies.

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GDP PER CAPITA


The GDP per capita is an index that measure the total amount of GDP, divided by
the population of the country. This means that the GDP per capita demonstrate the
distribution of the GDP among the population.
In South America, the country with the largest GDP per capita rate is Chile, with
about US$ 20,216.30 per capita.
In USA, we see a great amount of GDP per capita, but this shows more the size of
the GDP of the country than the equality of the distribution of this GDP. Even so, USA is the
largest economy in the world, and also one of the greatest economies per capita
(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):

GDP PER CAPITA IN PPP


Considering the Purchase Power Parity rate, the difference between the South
American countries and USA remains almost the same.
The country with the greatest GDP per capita in PPP terms remains being Chile.
Uruguay, Venezuela and Brazil are the next in the South Americas ranking.

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):

THE SOUTH AMERICA IN TERMS OF HDI


ANALYSIS OF THE SPECTRUM OF THE OTHER STATES
The HDI, that is the index the shows the level of human development is a very
important indicator for the society welfare, providing a way to measure the distribution of
opportunities amongst the population.
The South American countries are distributed in the central part of the spectrum
of the world HDI ranking, what shows that this is a region under economic, social and
political development:

14

ANALYSIS OF THE DIVERGENCES BETWEEN THE SOUTH AMERICAN STATES


AND USA
Even with the fact that South America is in a central position of the world spectrum
for HDI, we can notice the distance from the South Americans most developed countries
to USA. The fact of South America is a region under development, for its own, shows that
there is an immense gap between the first world and the development countries. In the
own subregion we can see a great gap between the nations, what shows that there are no
continental politics, in general terms, by the south American states authorities, to adopt a
functional politic of development as a whole of the entire region, as we see with the
European Union, for an example.

15

ANALYSIS OF THE NATURE OF DATA


Remembering that as much near from the number 1.00 the country is, the better
is its HDI level. In South America, the countries with the greatest HDI rates are Chile, with
0.819 and Argentina, with 0.811. Even so, is possible to notice the distance until the United
States HDI, of 0.937, the third in the world ranking.3

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

CHAPTER II - THE SOUTH AMERICA AND THE GLOBALIZATION


This is, perhaps, the term where the South America is a little more similar with
United States. Divided into three dimensions, measured by KOF, the globalization indexes
are: Economic Globalization, Social Globalization and Political Globalization.
The following graphic, from the KOF, shows the configuration of the
Globalization evolution of the South America in the last decades.4

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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.

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ANALYSIS OF THE DIVERGENCES BETWEEN THE SOUTH AMERICAN STATES


AND USA
In terms of economic globalization, the states that most similar with USA are
Colombia, Bolivia, Paraguay and Brazil. Although, the inequality of opportunities on South
America with relation with USA is something almost immense.
There is, in the region, an economic treaty called Mercosul (Mercado Comum do
Sul, or, in English, Souths Common Market), where Argentina, Brazil, Paraguay, Uruguay
and Venezuela. Associated members are Bolivia, Colombia, Chile, Ecuador and Peru. There
are two observer members: New Zealand and Mexico. This is one of the tries from the South
American states to promote greater international immersion for the smallest economies of
the subcontinent.

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With a past of slavery, and economic inefficiency provoked by the intense


dependence of the agribusinesses in the subcontinent, where almost all the South American
states depending so much from agroindustry, livestock and many other kinds of primary
productions, what serves to make the economies be always behind the developed world
potencies that invests much more than South America in technological products over
primary products.
The graphic blow shows the evolution of the South Americas Economic
Globalization in the last decades, from the KOFs database.5

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:

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ANALYSIS OF THE DIVERGENCES BETWEEN THE SOUTH AMERICAN STATES


AND USA
In terms social globalization, we see the difference between the south American
states a little smaller in relation with then, and a great difference between the subcontinent
and the United States of America, that presents a Social Globalization index much higher
than the south American countries. This confirms the social inequality conditions in the
subcontinent, that is a factor that characterize South America as much as the economic
limitations and other kind of problems.
The social problems that South America must to fight are enormous: since the
violence in Colombia and Venezuela until the social inequalities among the so-muchdifferent regions of Brazil, we can notice that South America is a region that deserves the
attention of the entire world: if we take the drug trafficking problem, for an example, we
see an example of problem that affects all the entire world, because the South America is
very known by the trafficking that feeds North America, Europe and Asia with tons of drugs
every years.

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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

ANALYSIS OF THE SIMILARITY BETWEEN THE SOUTH AMERICAN STATES


AND USA
The similarity of the political globalization can be seemed as an enhancement of
the participation of the south American countries in international questions. Brazil, for an
example, is constantly developing its international relations with as many countries and
organizations as possible, cooperating as full or observing member in many of these
organizations.
The graphic below, in the next page, shows the evolution of the South Americas
Political Globalization in the last decades, from the KOFs database.7

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CHAPTER III - THE SOUTH AMERICA IN TERMS OF TRADE


ANALYSIS OF THE SPECTRUM OF THE OTHER STATES / ANALYSIS OF THE
DATA
As seemed in the world spectrum below, the South American states are located
principally in the bottom of the spectrum. This means that the greatest part of the South
American countries have a little percentage of its GDP constituted by trade operations. The
exception for this are the countries that are situated in the middle of the spectrum:
Paraguay, Bolivia, Chile and Ecuador.

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ANALYSIS OF THE SIMILARITY BETWEEN THE SOUTH AMERICAN STATES


AND USA
One interesting thing is how the largest economies of South America, Brazil and
Argentina are located so near from the United States in the ranking of Trade as % of GDP.
This appear to show how the Brazilian international commerce politics, principally, is similar
with the North American trade patterns. South American states are particularly similar with
USA because the large quantity of businesses made between them. USA and Brazil, for an
example, are states with a history of economic partnership: today, Brazil is its 10th largest
partner8.

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CHAPTER IV - THE SOUTH AMERICA IN TERMS OF FDI FINANCIAL DEVELOPMENT INDEXES


Because the analysis of the FDI could be much extensive, by the fact of the great
amount of data provided for this indexes, is more appropriated, for the purposes of this
assignment, to shorten the indexes into a single analysis and a single spectrum:

ANALYSIS OF THE SPECTRUM OF THE OTHER STATES / ANALYSIS OF DATA


FDI Inward: Comparing South America with USA, we see that its spectrum for FDI
Inward have Brazil as the nearest economy from USA.
FDI Outward: Comparing South America with USA, we see that its spectrum for
FDI Outward have Brazil as the nearest economy from USA.
FDI Flow Inward: Comparing South America with USA, we see that its spectrum
for FDI Flow Inward have Brazil as the nearest economy from USA.
FDI Flow Outward: Comparing South America with USA, we see that its spectrum
for FDI Flow Outward have Chile as the nearest economy from USA.

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

ANALYSIS OF THE SIMILARITY BETWEEN THE SOUTH AMERICAN STATES


AND USA
Again, we look for the particular similarity between Brazil, the South Americas
greater economy, and USA. Both countries have a history of bilateral investments that
provides technological support, jobs creation and amounts of dollars as investments in
infrastructure and production.
In the last years, Brazil, Argentina, Chile and Colombia had reached the largest FDI
growths, driven by the increase of activities connected with the high commodities prices
that enhanced the search for natural resources investments in the South America, by the
USAs side. Although, this growth is counterpointed by the constant climb on the outward
index since the financial crisis, in 2008.9

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CHAPTER V SOUTH AMERICAN SOCIAL INDEXES


TRUST
Trust is crucial, as noticed by many Social Scientists, Economists and other Political
Sciences Scholars, because it gives to all the interpersonal, economic, cultural, social and
political activities the necessary warrancy that the binding structures of the actions of these
peoples involved with these same activities will be respected. Without Trust, there is no
society, and so on, most probably there wouldnt is no civilization.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


Part of the database used to compile the spectrum came from the
Latinobarmetro database for the period of 1995 to 2008, and more specific to the states
Bolivia, Brazil, Paraguay and Venezuela. The Corporacin Latinobarmetro10 is an NGO that
does the production and divulgation of the database on social indexes. The other part
comes from World Values Survey Wave 611, from the years 2010 to 2014 for Argentina,
Chile, Colombia, Ecuador, Peru and Uruguay.

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Measured by some kinds of statistical methods, the Trust can be observed, in


South America, compared with the United States of America, and with the rest of the world,
as follows in the spectrum of last page, where we notice that the South American states are
most commonly set from the middle region of the spectrum to the bottom, and, for the
case of USA, at the first quarter of the spectrum.

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)
One possible reason to this configuration on the spectrum we had observed is
that, in the case of the South American states, historical: In most part of the states, the past
of slavery and economic choke and dependence.
The slavery is an important factor because countries with a past of extreme
poverty, suffering, economic and social delay and choke as the South American tends to
have little trust indexes. The slavery and the economic choke are also factors that generates
violence, what is one more variable to diminish the trust levels of a society.
The difference between South America and USA is that, while in USA the economy
growth was a priority, with the modernization of the production factors and the creation of
a better society based on avoid the past of suffering, in South American countries there was
the economic delay caused by the concentration of the political power and economic
activity in the hands of a social class that gave priority to the continuation of the compulsory
work that had generated the violence, the racism, and the rivalry between the countries,
and even between different regions inside these countries.
This can be notice when we look also for the spectrum and for the image below,
in the next page, where we see that Brazil, Ecuador and Colombia are the countries with
the worst trust levels in the South America, and, if we think a little about it, these are the
countries where the drug trafficking, urban violence and compulsory work are most found
in this region of the world today.
With less violence levels, better capacity to impose the Rules of Law (explained
ahead in this paper), cultural values generalized to create a sense of union and other factors,
United States shows not so a better economic and social development, but also better trust
levels.

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

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICA AND USA


In countries like Brazil, the abolition of slavery dates from 1880, and, although the
abolition of slavery in United States dates from 1865, the called compulsory work in Brazil
was common until modern days, what is a clear cause of the delay in the conditions of
productive systems in this country.
As serious as the Brazilian social and economic conditions, are the rest of the South
American countries, where the growth of violence, the sense of disunion, the culture of the
selfish thinking and the lack of distrust in the image of public institutions and governments,
the South America remains very far from the USA in terms of Trust levels, that is important,
as said before, to create stronger relationships between the economies into a globalized
world as today.

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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.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


At the first look, we notice that the South American countries are scattered
randomly across the spectrum of Ethnic Fractionalization. The United States, by other hand,
is set almost exactly in the middle of the spectrum.

ANALYSIS OF THE NATURE OF DATA


One possible reason to this configuration on the spectrum we had observed is
that South America is, in many parts of its territory, a heterogeneous ethnic region. The

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%.

ANALYSIS OF THE SIMILARITIES BETWEEN SOUTH AMERICA AND USA


USA have, in this very same probability, almost 49%. The pluralism of ethnic
groups and the diversity of cultures can be explained by the great opened economy that
makes the country literally to have people from almost the entire world into the territory.
This gives to USA a great ethnic diversity, although this is not as high as expected by this
economic analysis, because in the interior of the country we see strong homogenous ethnic
groups. South America also have this kind of configuration, where in the coastal areas of
the subcontinent, the peripheral areas, we notice great ethnic diversity, and, while in the
interior we see strong homogenous groups and populations.

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.

ANALYSIS OF THE SPECTRUM OF OTHER STATES

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:

DESMET INDEX - LANGUAGE FRACTIONALIZATION


In the Desmets index for language fractionalization, we notice that the South
American states are scatters randomly in the spectrum for the rest of the world. USA, as
seemed, is near from the central region of the spectrum.

ETHNOLOGUE INDEX - LANGUAGE FRACTIONALIZATION


In the Ethnologues index for language fractionalization, we see the South
American countries positioned from the center to the bottom of the spectrum. USA, here,
is also in a different position if we compare with the Desmet index, located now more to
the bottom, although into the central region yet.

32

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)
Alesina, in 2002, has used the Encyclopedia Britannica to make his conclusions
about linguistic diversity, Desmets index measures the linguistic fractionalization with
different databases and, by other hand, Ethnologue has made a complete research where
they found about 7,000 languages in the entire world. (from this, only 682 are recognized
as official languages by States, national organizations or international organizations).
Bolivia, also accordingly the Wikipedia13, have about 38 official languages, from
the Spanish to indigenous languages as Guarani and Aymara. Guarani is a common
indigenous languages spoken by some tribes from the north of Brazil and other regions of
the middle of the South America. Although, Brazil appears as one of the countries with less
linguistic diversity in the world.
The difference between Desmet and Ethnologues indexes is that the first has taken
only official languages in account, and the second recognizes developing, official and
vigorous languages. With this change, Bolivia pass from the first to the sixty-sixth country
with widest linguistic diversity in the world. This explains also the divergence between the
two spectrum images.

33

ANALYSIS OF THE SIMILARITIES BETWEEN SOUTH AMERICA AND USA


A possible explanation for the diminishment of the linguistic diversity in South
America remains the historical:
with the Colonization, many
peoples lost their customs, their
traditions and their languages
in the process. This is also a
thing that changed ethnic
patterns as linguistic patterns in
the region. One proof for this
theory is the Colonization in
Brazil. When the Portuguese
arrived in the Brazilian lands for
the first time, the indigenous
languages were spoken in the
entire territory. After this, in the
first decades from the XVI
century,
the
indigenous
populations were turned into
slaves and, about the end of the
century, the indigenous slavery
was prohibited with the
condition that the indigenous
peoples would be catechized and would learn the Portuguese language. This clearly
changed, along the time, the linguistic patterns of the country, that today, even in the
Ethnologue index, is one of the countries with less linguistic diversity in the world.
In the United States, almost the same happened: the British colonizers that arrived
in the continent changed the linguistic patterns that were originate in the tribes that was
living in that regions. With the time, the influence of the English language was so strong to
the linguistic patterns of the country that the language, very similar with what happened to
Brazil, has turned in the official language, and is, today, one of the most spoken languages
of the world.
The colonization past, so, is one factor that provides some similarity between some
countries from the South America and the USA.

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.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


Looking for the spectrum of Religion Fractionalization, we can notice that United
States is the second country in the worlds ranking with more religion fractionalization. At
other hand, all the South American countries, except Brazil, are situated from the middle to
the bottom of the spectrum. Less fractionalization means that the population have more
tendency of to follow a single region, and more fractionalization means that there is more
diversity of religions among the population.

35

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)
Alesina and his associates used the Christian Encyclopedia to create his index for
Religion Fractionalization. The problem with this is that the analysis of this Encyclopedia
tends to be more prominent to the Christian religion than the others, considering people
that are benefited by social activities of the Church as affiliated to the Christianity, what
tends to enlarge the amount of people belonging to this religion. This makes the index a
little impartial, with a database that must to be observed with much caution.
Despite it, theres a lot of sense in many observed data into the index: United
States, the land of diversity have a very diverse religion fractionalization caused by the
amount of people that comes from the entire world, from the most diverse parts, for there,
to live and be part of the country. This kind of pluralism in the origins of the population
contributes to a more diverse cultural, ethnical and rich national spectrum.
In the South America, we notice that the proximity of the countries in the spectrum
can be explained, perhaps, by the fact of the population to have a lot of concentration in
the tradition, even that traditions that was brought by other people from other parts of the
world and that was embodded in the current patterns of religion traditions, what makes the
sense of continuation so strong that creates a situation where the population tends to
adopt, even unconsciously, that religion patterns that lies in the society as their own.
This is widely observed in South America, where we can find many tribes that
continues its traditions over the centuries, almost untouched by the rest of the world,
although the number of tribes with this configuration becomes more and more rare.

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICA AND USA


The difference is in the composition of the religion diversity between United States
and South America. In the first country, USA, there are a composition of many kinds of
different religions. Accordingly the ARIS survey14 (ARIS means American Religious
Identification Survey), in 2008, there are 76% of Christian, 15% had claim no religion, 4%
divided in Judaism, Buddhism, Islam, and Hinduism and about 5% with no opinion about
the theme or being people that doesnt want to answer the poll.
At other hand, in South America we see that the influence of the Spanish
Colonization that began in the XVI century contributed to the great majority of Christians
in almost all the countries. Bolivia is a country with about 90% of the population composed
by Christian-based religions. Chile and Ecuador, are about 80% composed by Christians.

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.

Image from: http://ed101.bu.edu/StudentDoc/Archives/ED101sp09/aklane/culture.html

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

The equivalent map for United States of America:

38

INCOME AND WEALTHY INEQUALITY


Measured by methods of measurement as the calculation of the relation between
the amount of resources in the hands of 1,10 or other percentile of the richest population

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.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


The Gini index is a measurement system created to show the Income and Wealth
Inequality of the countries. Although, the problem is that there are many countries without
available data. Amongst the countries that belongs for our research area, in this paper,
United States of America and Venezuela are both countries that have no available data for
the Gini Index.

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.

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)
The database from the World Bank shows to us the critical situation of the South
America about the Income and Wealth Inequality, with the majority of the South American
states situated in the top of the spectrum. This, however, could be a little different if the
available data was greater than the current. In 2010-2011, the data covers only 60 countries,
and many important and great countries are missing.
The nature of data, however, cannot hide the South American situation. The
extreme poverty is being combated, and eradicated in many places, but even with a
progress in some regions of the subcontinent, there are countries with a contrary pattern
of evolution.
This is the case of states as Argentina, Chile, Peru, Uruguay and Venezuela, for
some examples, where the Gini Index increased in the last decades, as shown in the graphic
here aside, compiled by The Economist in 2003,
named A Stubborn Curse17, that theorized that,
South America were becoming less unequal,
although some countries were experiencing the
contrary.
A case of state that is becoming less
unequal is Brazil, that experienced, since the end
of the 2000s, a growth in the equality along the
years of the last governments of Fernando
Henrique Cardoso, Luis Incio Lula da Silva and
Dilma Rousseff, where many social programs
provided a change in the Wealth Distribution
patterns of the country.

40

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICA AND USA


Although there is no available data for the Gini Index, there are also ways of
measure the Income and Wealth Inequality. One of this cases is the division of the total
amount of resources in hands of the 1, 10 or other percentile of the richest by the same
percentile of the poorest population. To compare United States with South America, we
must to use sources as that compiled by Adam Isacson from the U.N. Economic Comission
for Latin America and the Caribbeans annual Statistics Yearbook, and used by The
Huffington Post in the article named U.S. Income Inequality Worse Than Many Latin
American Countries 18, (from where the graphic ahead was adapted), we can notice that
many countries from the South America are better than United States of America in sense
of Income and Wealth Inequality.

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.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


The Democracy Index spectrum, compiled using the database provided by The
Economist Intelligence Unit, shows Uruguay as one of the most efficient States of the world
in the maintenance of the Democracy. After this, comes United States, followed by the other
South American countries. We can notice that South American countries are scattered from
the middle to the top of the spectrum, what means regular, good, or very good levels of
reinforcement of the Democracy.

42

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)
Democracy is a very complex index. This puts in consideration the reinforcement
of laws that protects the relationship between the companies and the society, avoiding too
much or to less protection to the market, the grantee of election processes, political
inclusion in the government sphere, what makes ethnic, linguistic or other social topics less
relevant in the political activities of the country, and the maintenance of many other kind
of rights and interpersonal, or even interinstitutional relations. So, with the provided data,
we can start to think about it.
The Economist Intelligence Unit, EIUs mote is, as said by their own: We help
clients to decide which locations offer the best risk/reward trade-off for their business. This
trade-offs, in Economics, are essential for us to understand the Market and people. EIU
measures the Democracy Index by taking into consideration five topics, more specific:
electoral process and pluralism, civil liberties, functioning of government, political
participation, and political culture.
Uruguay, appointed by many as one of the (if not the only one) real full democracy
of the South America, have a past of dictatorship that was treated with fairness and Justice.
Political crimes, actual or not (as the case of the cited dictatorial crimes committed in the
Uruguays past) are judged and condemned vehemently, and the democratic machine
appears to function well. In 180 years, the State is considered a model democracy.
After Uruguay, comes USA, that also have a modern and functional political
system, and appears near of the top of the spectrum for the EIUs data. The rest of the
South American comes later, perhaps because the political systems that have delayed
configurations, lack of political reforms in the modern past, and, just to quote another topic,
the recent past of dictatorial regimes, as the case of Brazil, for an example, that are
becoming treated with seriously only in the recent years, and that created deep social,
economic and political consequences that remains until today.

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICA AND USA


The principal cause for the divergence between South America and USA is the
decreasing pattern of the Democracy in the subcontinent. With semi authoritarian political
systems as that created by Hugo Chvez in Venezuela, Presidents Evo Morales of Bolivia
and Rafael Correa of Ecuador, for some examples, are contributing to this. The economical
politics of interventionism and control of economy by the State realized in the last
governments in Brazil by Lula and Dilma Rousseff also contributes to the centralization of
politics and to the decrease of the Democracy in South America in terms of economic rights.

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.

VOICE AND ACCOUNTABILITY


We looked for the Democracy as one system that measures the proper
establishment of the economic and political rights in society. Now, we will also look for

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.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


Looking for the Spectrum of Voice and Accountability, we can notice that South
American countries are scattered randomly along the spectrum, varying from the positive
axis to the negative.

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)
Accordingly a document wrote by World Bank, where the institution shows what
variables they take in account when measuring this index 20, Voice and accountability
captures perceptions of the extent to which a country's citizens are able to participate in

45

selecting their government, as well as freedom of expression, freedom of association, and


a free media.
We notice, as seemed in the previous topic, Democracy, that United States is very
near of the top of the spectrum. Just like in that topic, we see Uruguay, and nopw, Chile,
very near from the United States. This can be possibly explained by the similarity in the
statistic process of both indexes. The Worldwide Governance Indicator, from whom we got
the Voice and Accountability, provides a widely complex and complete quantity of variables
that are observed for the compilation of the data.
The results of an analysis of this data, although, should be provided together with
a comparison between the countries, what we will do now.

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICA AND USA


As seemed with the Democracy index, we notice here that Uruguay continues very
near from the USA, but now after it, in the spectrum. Chile also appears, and between both
countries.
Is very interesting to observe the way how the Voice and Accountability, that is a
measure for Good Governance, increased in these countries, Chile and Uruguay, in the last
decade, and how the very same index decreased in almost all the other countries from
South America, and even in the United States.
This is, maybe, one key point for our analysis.
As the index measures freedom of expression, participation in electoral processes,
utilization of media, and other variables, we see that Uruguay and Chile, both countries with
a past of dictatorial governments, has left this sad past behind and promoted the necessary
changes in the political system, what remains as necessary in the rest of the countries of
the subcontinent.

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

RULE OF LAW - NOMOCRACY


Rule of Law, also known as Nomocracy, is the principle that defends the idea that
the Laws should govern the State, and not the arbitrary decisions or rules of the government
by itself.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


At the first look, we can notice that the South America are scattered randomly
along the spectrum for Rule of Law index, measured by the World Bank. The USA, at other
hand, is located near from the top of the Spectrum.

48

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)
World Bank compiles the data using many variables that gives credibility to the
analysis. The institution takes in account 31 sources and a larger number of variables in its
methodology. Accordingly the bank, Rule of law captures perceptions of the extent to
which agents have confidence in and abide by the rules of society, and in particular the
quality of contract enforcement, property rights, the police, and the courts, as well as the
likelihood of crime and violence.
What we observe, in our analysis of the results, is that South American states here
are very far from the United States considering this index.

49

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICA AND USA


The interesting thing here is the evolution of the data. Almost all countries from
South America, like Brazil, had a increasing level in the Rule of Law in the last years. The
interesting here is how this index decreased a little in Uruguay and Chile, both examples of
model democracies in the subcontinent.
South American states tends to diverge from the United States because almost all
of them have overpassed models of public and private laws. The Legislative Reform is clearly
a necessity in many countries, and we can notice this because the last events, as cited
previously in the topic Democracy, of changes in the law for provide the perpetuation in
the power of many Presidents.
The civil laws also must to be changed and modernized. We see that the law, the
enforcement of it, and the punishment system are also overpassed, and, in most part of the
subcontinent, critical.

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.

ANALYSIS OF THE SPECTRUM OF OTHER STATES


When we look for the Spectrum for Control of Corruption, we notice that the South

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.

ANALYSIS OF THE NATURE OF DATA (EXPLANATIONS FOR THE OBSERVED


RESULTS)

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

ANALYSIS OF THE DIVERGENCES BETWEEN SOUTH AMERICA AND USA


The fact that the divergence between United States and South America is very
large, with the exception of Uruguay and Chile (again), is also observed in the Control of
Corruption index.
One of the greatest reasons for this is the utilization of the media by governments
as means of to hide corruption cases, the malfunction of the State in promoting the Rule of
Law and the efficiency of the political apparatus to promote private sectors to be part of
public activities for their own interests.
USA, even with a decreasing level in the index, continues to be on the top of the
world ranking, where we observe South American countries as Venezuela waning as one of
the last countries, not just in matters of Control of Corruption, by in terms of all other
Governance measurement indexes.
This also can be explained, maybe, by the rise of the Populism that attached the
legal, political and economic spheres of the countries, by the perpetuation of the power in
many of these very same countries and by economic and historical facts.

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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