In Central and South America the poverty level is in three levels with 40% being at the lowest level (Valero, 2013). In order to overcome this poverty gap there are numerous things the country can try for its people. Having good leaders globally will help them understand the need of the people and address them at their weakest points. Having leaders that know how to address concerns and build the workforce are a top priority for fixing the economy. Our reading this week lists some important key things that leaders should know how to do such as; better manage national resources, manage technology and information for development in the people of the country and development of multinational companies all over the continent (Moran, 2011, p. 320).
Globalization is required for all countries to be successful. America uses other countries for cheaper items so other countries should as well and a key country to do it is Pan-America. Caterina Valero states “to increase its productivity and competitiveness in global markets, the region requires more investments in education, research, technology, and innovation. (2013)” Her article focuses on the Americas and their struggle with poverty and offers thought provoking ideas of how to improve the economy and all throughout her article she is insistent on globalization as one of the key factors to bringing the countries to their feet and equalizing poverty. With globalization being a requirement for a country to get out of poverty it is clear some things will need to be outsourced.
In North America it is commonly said that we send too much stuff overseas to be outsourced and I am a culprit I dislike calling a company and getting a call room clearly from another country. Globalization is ideal to a certain point and helpful for a country to get back on their feet. If the Pan-American countries outsource more work to each other they would help each others economies but if it was that simple why haven’t they done it yet?
Carlos Sabino of the PanAm post lists what he thinks are the two largest problems are: Inflation and high taxes coupled with stringent rules that hinder an entrepreneurial business. If the citizens themselves are not able to have successful businesses how can a business that is not large and can easily go global develop? It will struggle greatly and that may be the reason why the Pan-Am has so much poverty.
References:
Moran, R., Harris, P., & Moran, S. (2011). Motivating the Global Workforce. In Managing cultural differences global leadership strategies for cross-cultural business success (8th ed., pp. 156-179). New York, NY: Routledge.
Sabino, C. (2014, January 21). The True Causes for Latin America’s Social Inequality. Retrieved March 18, 2015, from http://panampost.com/carlos-sabino/2014/01/21/true-causes-latin-americas-inequality/
Valero, C. (2013, June 25). Yale Journal | A Time of Hope and of Challenges for Latin America. Retrieved March 18, 2015, from http://www.padf.org/blog-hidden/2014/9/25/yale-journal-a-time-of-hope-and-of-challenges-for-latin-america
I think it is very difficult to lump the Pan-American countries together as one group to solve the problem of poverty. The Pan-American countries span from Canada, to the US, to many of the bigger countries in Central and South America (“Countries of the Americas,” n.d.). The problem of poverty in the US is caused by a different reason than the poverty in Brazil. Globalization is very important for an economy to stabilize but I’m not sure that I agree that outsourcing jobs is the best way to do that. Creating more jobs through trade agreements could be a better solution. Unfortunately, many countries in Central and South America also have to deal with a corrupt government that inhibits the benefits of trade to have the positive effect that it could on the issue of poverty.
Countries in the Americas. (n.d.). Retrieved from http://www.doitintheamericas.com/attractions/countries.htm