Implications of the globalization of capital in Latin America and the Caribbean

Abstract

The aim of this article is to show that the poor international insertion of Latin America and the Caribbean (LAC) in the current globalization of capital has a negative impact on its development in the medium and long term. The reflection and contribution are based on an understanding of the industrial changes caused by globalization. In the case of LAC, a process of deindustrialization is evident, exacerbated mainly by trade liberalization policies, which, while having promoted trade, have also exposed it to other problems derived from low labor productivity, reduced efficiency in the use of materials and energy, and poor human development. In the global context, the region stagnates its participation in world industrial production and services, which shows that LAC compromises its future by clinging to a primary-export insertion with little added value, an increase in extractivism, and few internal productive chains, which causes a vicious circle: low capability for the development of goods and services with medium and high technological content and concentration in activities that demand low-skilled human resources.