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Article: CRISIS OF CONFIDENCE BATTERS SOUTH AMERICAN EXPENDITURE.(Brief Article)
- Article from:
- Market Latin America
- Article date:
- October 1, 2002
CopyrightCOPYRIGHT 2002 Media Contact Resources, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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South American households and businesses alike are cutting back on expenditure as confidence in the region's economic future falters. Commercial and industrial expenditure will be particularly hard hit as businesses find it increasingly difficult to borrow money for expansion. This comes at a time when foreign direct investment is being diverted to developing nations in Asia and Eastern Europe where investment risk is deemed to be lower.
Part of the problem lies in the fact that confidence in free-market capitalism has declined, but no viable alternative model has emerged. After a year of experimentation with orthodox economic policies, 44 percent of Latin ...