Question

Explain why despite enormous natural resources, much of Latin America's population remains in poverty and the region has been repeatedly experiencing financial crises.

Answer 1

Answer--Despite enormous natural resources ,much of Latin America population remains in poverty and the region has been repeatedly experiencing financial crisis because the large number of Latin America population remains in poverty because of ineffective and ineffiecient advises by the policy makers and inefficient predictions or multiply about investment decisions having taken by the governments of the countries of Latin America. At the same time period,the revenues available to those able to exploit limited domestic markets inspired lobbying for imports licenses and expanding the market as well as corruption.There was andas well as in present time there is huge involvement of corruption in the government system of the latin american countries. Discrimination in the import that alternates financial system and poverty at the lowest income levels grew over time. Government corruption and bad administration of money have been one of the factors that enable Latin America population from growing. Since in the time period of 1950s and 1960s most of the Latin America countries in the region were able to attain positive growth rates by exploiting the initially high returns from moving resources in to industrial uses from inefficient agricultural activities. Instead of using the growth to get rid of debts and decrease the deficit of the country, governments along with corrupt people wasted for getting about the debt that the country was facing.