External vulnerability hinders development and increases inequality

Chapter II discussed the slow growth of international trade and the persistence of a global recessionary bias, which are affecting the region’s economic performance through both trade and financial channels. The trade channel produces the most direct effect, seen in export growth figures, while the financial channel transmits the portfolio decisions that determine inward and outward volumes of cross-border capital flows. The financial channel became more important in recent decades as the countries of Latin America and the Caribbean were integrated into global credit markets, local financial systems were deregulated and the preponderance of transnational corporations in the region’s economies —including trans-Latin companies— steadily increased.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities