LATIN AMERICA: A STABLE AND PROSPEROUS FUTURE

THIS MONTH’S ISSUE Why we chose… Latin America In this issue we explore Latin America and its emergence as a global economic force while the rest of the world has been preoccupied with Asia Pacific and the Middle East. This is a region acclaimed for its massive wealth in natural resources, but one that has fallen short of expectations time and again. Recent trends show positive developments in economics and politics which give evidence to the possibility of a Latin American renaissance. Memories of Cold-War era Latin America belie a positive future for the region, so we ask the questions What are the current economic trends? Who are the major players? Do forecasts show a bright future? Let’s explore…

In this issue we explore Latin America and its emergence as a global economic force while the rest of the world has been preoccupied with Asia Pacific and the Middle East.

This is a region acclaimed for its massive wealth in natural resources, but one that has fallen short of expectations time and again. Recent trends show positive developments in economics and politics which give evidence to the possibility of a Latin American renaissance.

Memories of Cold-War era Latin America belie a positive future for the region, so we ask the questions

What are the current economic trends?

Who are the major players?

Do forecasts show a bright future?

Let’s explore…

It’s not the Latin America of the 1980s. Revisit your thinking about the region, because major opportunities await. Look to new possibilities in Latin America. There has been a surge of business leaders in their respective industries, politics are becoming accommodating to investment opportunities, and a new regional independence has given way to possibilities in the region. The region is no longer the place of instability you remember. Wise government policies and impressive management has put Latin businesses at the forefront of several industries across the globe. Don’t overlook what could be a region full of competitors, partners, and customers in the future.

The Trends

The Latin America of the past . . . Negative images of drug kingpins, violent guerrilla groups, low-skilled immigrants, communist militants, and iron-fisted right-wing dictators of the past have created a stereotype of an unstable Latin American political and economic environment.

. . . Is NOT the Latin America of today. New and capable leaders, known for a commitment to democracy and transparency, have emerged in the region. From left to right: Luiz Inácio Lula da Silva, president of Brazil; Michelle Bachelet, president of Chile; Cristina Fernández de Kirchner, president of Argentina; Felipe Calderón, president of Mexico; Álvaro Uribe, president of Colombia; and Fernando Lugo, president-elect of Paraguay. Mexico’s Carlos Slim Helú is Forbes Magazine’s second richest man on earth (1st is Warren Buffet and 3rd is Bill Gates). His net worth is $60 billion, a fortune made in Latin America’s telecommunications industry. The bi-national Brazil/Paraguay Itaipu Dam represents the massive infrastructure investments that will enable future prosperity. A new breed of Latin American business began dominating industries across the globe. These diverse companies are industry leaders from petroleum and cement to bread and beer, from local to the U.S., E.U., Australia, Africa, and Asia.

Five Reasons to Re-Examine Latin America Both Politically and Economically #1: On average, Latin America is becoming safer and healthier. #2: Latin American economies are becoming more prosperous and independent. #3: Several Latin American companies are dominating their industries. #4: Business opportunities across the region: Energy, telecommunications, transport . . . #5: An increasingly stable and self-sufficient political environment.

Latin American quality of life indicators have been increasing steadily since the 1990’s, including life expectancy, infant mortality rate, and access to primary and secondary education. Reason #1: On average, Latin America is becoming safer and healthier. Source: “Social Cohesion: Inclusion and sense of belonging in Latin America and the Caribbean”. United Nations, Santiago, Chile, May 2007, page 50.

Latin America’s largest guerrilla group, the FARC, is being marginalized In 2002, the Revolutionary Armed Forces of Colombia (FARC) was estimated at 17,500 and is now estimated at 9,000; The National Liberation Army (ELN) is considered to range from 2,200 to 3,000 members, ushered out by member competition with FARC and attacks by the United Self-Defense Forces of Colombia (AUC) paramilitaries. In the last 5 years there has been a 40% decrease in homicides, 76% decrease in kidnapping for ransom, and 61% decrease in terrorist attacks on civilians; Reason #1: On average, Latin America is becoming safer and healthier. From left to right: Raul Reyes, killed by the Colombian army in Ecuador on March 1, 2008; Ivan Rios, was assassinated by his guard on March 3, 2008; and Manuel “Tirofijo” Marulanda, died of a heart attack on May 13, 2008. All were major FARC leaders. Ingrid Betancourt, a former Colombian presidential candidate was kidnapped by the FARC in 2002 and was rescued, along with 14 other hostages, in a daring rescue mission on July 2, 2008.

In 2002, the Revolutionary Armed Forces of Colombia (FARC) was estimated at 17,500 and is now estimated at 9,000;

The National Liberation Army (ELN) is considered to range from 2,200 to 3,000 members, ushered out by member competition with FARC and attacks by the United Self-Defense Forces of Colombia (AUC) paramilitaries.

In the last 5 years there has been a 40% decrease in homicides, 76% decrease in kidnapping for ransom, and 61% decrease in terrorist attacks on civilians;

A middle class is emerging in Latin America through low inflation and robust GDP growth A stable and predictable economy has nurtured and grown Latin America’s middle classes. Reason #2: Latin American economies are more prosperous and independent. Source: "Adios to poverty, hola to consumption" The Economist, August 16, 2007. http://www.economist.com/displaystory.cfm?story_id=9645142

Regional economic alliances are leading to consistent growth and independence. The role of the United States in the hemisphere appears to be decreasing rapidly. The Latin American and Caribbean (LAC) region’s exports to the rest of the world has grown by 11% in 2007 reaching $715 billion, continuing a trend of double-digit export growth since 2002. MERCOSUR’s (the free-trade region of Brazil, Argentina, Uruguay, and Paraguay) exports increased 17% in 2007, an estimated $221 billion in exports. The Andean Community’s exports grew by 13% in 2007, a projected $73 billion. Reason #2: Latin American economies are more prosperous and independent.

The Latin American and Caribbean (LAC) region’s exports to the rest of the world has grown by 11% in 2007 reaching $715 billion, continuing a trend of double-digit export growth since 2002.

MERCOSUR’s (the free-trade region of Brazil, Argentina, Uruguay, and Paraguay) exports increased 17% in 2007, an estimated $221 billion in exports.

The Andean Community’s exports grew by 13% in 2007, a projected $73 billion.

Latin America is providing foreign direct investment to other countries (!!!) Most people wouldn’t associate Latin American countries as foreign investors on the world stage. As such, one of the most notable trends in the region has been the increased South-South and South-North investment. South-South FDI has more than doubled between 1995-2003. Reason #2: Latin American economies are more prosperous and independent. Source: "The Emergence of Latin Multinationals", Deutsche Bank Research, February 28, 2007.

Latin America is providing foreign direct investment to other countries Reason #2: Latin American economies are more prosperous and independent. Brazilian investment overseas in 2004 was over $9 billion, over triple the amount ever invested abroad. Mexican investment abroad has been on the rise since 1990. Source: "The Emergence of Latin Multinationals", Deutsche Bank Research, February 28, 2007.

Latin America’s economy is stepping away from commodity dependence toward higher value industries Latin America is no longer a region for conquistadores searching for cheap access to primary materials. Growing technological and industrial sectors are showing economic diversification and stability, leading to increasingly self-reliant economies. High technology goods have increased 2.4% to 24.3% of total exports from Latin America since the 1970’s; Industrialized goods have increased from 47.4% to 75% of exports while primary goods has fallen from 52% to 24.3% since 1970. Reason #2: Latin American economies are more prosperous and independent. 1970 2000

Latin America is no longer a region for conquistadores searching for cheap access to primary materials. Growing technological and industrial sectors are showing economic diversification and stability, leading to increasingly self-reliant economies.

High technology goods have increased 2.4% to 24.3% of total exports from Latin America since the 1970’s;

Industrialized goods have increased from 47.4% to 75% of exports while primary goods has fallen from 52% to 24.3% since 1970.

In addition to high-value industries, Latin America is still reaping the benefits from rising prices in commodities markets. Latin America is profiting from a global increase in commodity prices. Latin America is rich in many primary materials, and demand for these are rising sharply, especially due to the economic expansion of Asia Pacific. Venezuela has oil, Chile is the world’s largest copper producer, and Brazil has a broad variety of industrially applicable resources such as metals, woods, fibers, and massive new oil fields. This should keep Latin America’s economies diversified and stable in the foreseeable future. Reason #2: Latin American economies are more prosperous and independent. Source: Davy, Megan and Noriega, Roger F.. "What if the United States Sneezed and Latin America Didn’t Catch a Cold", American Enterprise Institute for Public Policy Research, No. 3, May 2008.

The silent rise of the Latin Multinationals: While the West wasn’t looking, South America has had several companies rise to global leadership in several industries. Reason #3: Several Latin American companies are dominating their industries. Also known as Companhia Vale do Rio Doce (CVRD) was Brazil’s state mining company started in 1942 which was privatized in 1997. After their $19.4 billion purchase of Canada’s Inco in 2006, it became one of the three largest mining companies in the world with BHP Billiton (Australian) and Rio Tinto Group (British). Cemex is a Mexican buildings material company founded in 1906. In 2000, it became the largest producer of cement in North America. In 2007 it purchased Australia’s Rinker Group fro $16.7 billion. It has almost 67,000 employees worldwide and operates in over 50 countries in 5 continents. Corporación Nacional del Cobre (CODELCO) is the privatized entity of Chile’s public copper mining company. Privatized in 1976, CODELCO is the largest producer of copper in the world producing 1.83 million tons of copper or 20% of the world’s supply.

Reason #3: Several Latin American companies are dominating their industries. The list of companies breaking into U.S., European, and Asian markets that are based in Latin America continues. Embraer is a Brazilian aircraft company that is the fourth largest commercial jet producer in the world, producing jets for 37 companies in 24 countries since 1996. It is Brazil’s second largest exporter and 88.2% of its employees are based in Brazil. América Móvil, a Mexican wireless company, was formed in 2000. It is now Latin America’s largest privately held public company and has grown more than 10 times since 2002. It is Latin America’s largest wireless provider and the world’s fourth largest and held 46% of the market share in Latin America in 2006.

Latin America is preparing for even more economic expansion. Large infrastructure projects such as transportation, communication, and energy will be billion dollar business opportunities for vendors, while also readying the region for future growth. Brazil and Mexico are at the forefront of infrastructure development, with Brazil accounting for 19% of the world’s infrastructure spending since 1990. Itaipu Dam: the world’s largest functioning dam. A Paraguayan/ Brazilian bi-national project that accounts for 93% of energy in Paraguay and 20% in Brazil. Brazil, Argentina, Mexico, Chile, and Colombia are in the top 10 countries number of infrastructure projects from 1994-2003. Telecommunications has been a major area of infrastructure investment in Latin America. Reason #4: Expanding business opportunities across the region. Source: BRICs and Beyond , Goldman Sachs Global Economics Department, "Chapter 9, Building the BRICs: Infrastructure Opportunities", June 2006.

Latin America is at the forefront of ethanol innovation-- Building on its strength in agriculture and biotech, Latin American companies may actually lead the way on biofuels and alternative energy. In 2007, Brazil produced roughly 6 billion gallons of sugar cane-based ethanol and this output is projected to increase by 160% by 2016. Inverandino, a Colombian company, plans to make the first gallon of sugar-based ethanol in the U.S. and to raise production to 100 million gallons by 2013. Gas sold in Brazil requires that it be 26% ethanol. Columbia currently requires 10% ethanol and increasing to 25% in the next 20 years. The U.S. requires only 3% ethanol. In 2007 Petrobras, Latin America’s second largest energy company and among the world’s top 5, began exporting ethanol to Japan. Reason #4: Expanding business opportunities across the region.

In 2007, Brazil produced roughly 6 billion gallons of sugar cane-based ethanol and this output is projected to increase by 160% by 2016.

Inverandino, a Colombian company, plans to make the first gallon of sugar-based ethanol in the U.S. and to raise production to 100 million gallons by 2013.

Gas sold in Brazil requires that it be 26% ethanol. Columbia currently requires 10% ethanol and increasing to 25% in the next 20 years. The U.S. requires only 3% ethanol.

In 2007 Petrobras, Latin America’s second largest energy company and among the world’s top 5, began exporting ethanol to Japan.

The new Latin American left. Reason #5: An increasingly stable and self-sufficient political environment. Latin America’s new left movement steers away from the communist, undemocratic, and militant movements of the past. The momentum has been toward free market economies (Mercosur and the Andean Community) and socialized health and welfare programs (Brazil’s welfare program, bolsa familia , and the long-standing and extensive welfare programs in Chile). The Latin American political left has been moving towards European socialist states as opposed to red-scare era Maoist or Marxist communist states, which were concerns in the past.

The new Latin American right. Reason #5: An increasingly stable and self-sufficient political environment. Latin America’s new right wing movements do not include any generals or military coups. Felipe Calderón won a hotly contested 2006 election in Mexico, where opposition parties publicly and excitedly exercised their democratic rights of protest, free speech, and free press. Colombia’s Álavaro Uribe has worked with U.S. military to fight a winning battle against the FARC guerrilla movement. Under his presidency there has been a 40% decrease in homicides, 76% decrease in kidnapping for ransom, and 61% decrease in terrorist attacks on civilians. The U.S. and Colombia are currently considering a free-trade agreement.

The old Latin American concern, with a new twist. Reason #5: An increasingly stable and self-sufficient political environment. Modern Latin American politics is also influenced by more populist left-wing movements, including Venezuela’s Hugo Chávez, Bolivia’s Morales, Ecuador’s Rafael Correa, and Nicaragua’s Daniel Ortega. These leaders are often unified by their strong opposition to United States involvement in the region. The potential disruptive nature of these populist movements is counter-balanced by Brazil and Argentina, which are acting as regional political and military leaders. In fact, Brazil is the number one military in the region, participating in several peace keeping missions and providing regional security. This self-sufficient political environment was put to the test in the Colombia-Ecuador-Venezuela border crisis of 2008, where regional leaders came to acceptable truces on their own accord without much external influence. THE TWIST: Latin American problems are being resolved by Latin Americans

What To Do Today

Strategic implications – Why you should care. Latin American multinationals will be the world-class customers, partners, and competitors of the future. The evident growth in Latin America is often driven by world-class businesses such as Cemex, Embraer, and PetroBras. It is clear that multilatinas are going to be major global players in the coming decades. North American, European, and Asian companies should take note. The Latin American economy is no longer tied to the U.S. economy. The region shares the Western hemisphere with the world’s largest economy, but its growth appears to be completely independent. Even if the United States succumbs to inflation and unemployment, the future GDP growth of the region appears strong. Is this a sign of the United States slipping in significance? There will be a great need for management and accounting services throughout the region. Expanding businesses will require a significant increase in talented managers and world-class accounting that the region may not have. While political stability will stem the Brain Drain that occurred in the 1970s 80s and 90s, there will be still be a huge need of managerial skills in the coming years.

Strategic implications – Why you should care. Latin American prosperity may slow immigration of high-skilled talent to the U.S. & Europe Good news for Latin America, bad news for the U.S. and Europe – the increasing prosperity and political stability will keep top talent at home in the coming decades. Instead of sending top doctors, scientists, and entrepreneurs into developed economies, many will stay home. Think about STEEP Report #1 – The Coming Talent Crunch – you may have to offer sweeter deals to lure this talent away from samba, caipirinhas, sancoche, and other benefits of home. As standards of living rise, Latin America will develop into a more important consumer market The rising standard of living is creating a middle class in the region – time to establish strong consumer brands! However, be careful not to overestimate the power of “global” North American and European brands – Latin Americans have strong attachments to local companies, especially those associated with their home country. It is not yet clear who Latin America’s chief partner will be - US, Europe, China, or other? What is striking about the region’s political integration and economic expansion is the lack of intervention from a global hegemon. The United States has largely ignored Latin America in terms of foreign policy while focused on the Middle East. China is mostly interested in natural resources, and has not offered meaningful political and economic partnership aside from purchasing wood and copper. Whoever steps up as a true partner to this region will share in the prosperity that looks increasingly likely.

Strategic implications – Why you should care. Look to Mexico and Brazil as regional leaders Much discussion has gone on about the up-and-coming BRIC nations (Brazil, Russia, India, and China). Brazil has shown incredible growth and investment; everyone from Deutsche Bank to Standard and Poor is giving it excellent scores for debt-worthiness. Mexico is also a regional leader, with high investment, steady growth, and a stable economy. These two countries will likely set the political and economic policies that lead the hemisphere. Latin America will be one of the most robust markets for infrastructure Do you make information systems, water filtration, electrical grids or petroleum refineries? Latin America will show significant need for high valued-added infrastructure as its countries rise to take part in global economic opportunities. See STEEP Report #6: Infrastructure – to compete with Asian manufacturers, the region will require massive investment in ports, airports, highways, and telecommunications. Look to “unexpected countries” to see the important players of the future. Paraguay, Uruguay and Bolivia are not typically top on the radar, but each has significant natural resources and a population that often migrates in search of prosperity. Coming from a small economic base, the upside in these countries located next to giants like Brazil and Argentina could be very significant. So don’t forget the neighbors. Consider prosperity by proximity - look to untapped, unfamiliar economies for potential upside.

Recommended options: What can you do today? Keep your political risk analysis current The political stability in Latin America will make all other positive developments possible. Obvious, there are still uncertainties, and smart investors will continue to track these. For example, Paraguay is ready to replace its 65 year single party rule with a new party from the moderate left. While stability looks more promising than the tumultuous 1980s, interested parties will still need to keep checking on the region’s political evolution and take nothing for granted. Consider local partners to better reach markets Latin America has historically been a difficult market to break into for a variety of cultural reasons. Consumers show strong affinity for local brands that represent the distinct culture of that specific country. Consider distribution and marketing with local partners who know how to reach Bolivians, Salvadorans, Paraguayans, etc. Develop competencies in Spanish and Portuguese today or be left behind tomorrow. Sure, English is the international language of business. But given that South- South trade is expanding so quickly, Spanish and Portuguese will function as a lingua franca in the region. It will not suffice to simply translate a few pieces of marketing collateral into Spanish. Plan on training executives in the cultures and languages of Latin America to get a competitive edge. And don’t forget that each country has a different version of Spanish!

Addendum: Latin America - By the Numbers Figure Source Carlos Slim Helú’s net worth is $600 billion and he is world’s second richest man. Forbes.com, March 5, 2008 http://www.forbes.com/lists/2008/10/billionaires08_Carlos-Slim-Helu-family_WYDJ.html In 2002, the Revolutionary Armed Forces of Colombia (FARC) was estimated at 17,500 and is now estimated at 9,000. Hanson, Stephanie. "FARC, ELN: Colombia Left-Wing Guerrillas", Council on Foreign Relations, March 11, 2008. http://www.cfr.org/publication/9272/farc_eln.html In the last 5 years there has been a 40% decrease in homicides, 76% decrease in kidnapping for ransom, and 61% decrease in terrorist attacks on civilians. Hanson, Stephanie. "FARC, ELN: Colombia Left-Wing Guerrillas", Council on Foreign Relations, March 11, 2008. http://www.cfr.org/publication/9272/farc_eln.html Latin America and the Caribbean’s exports to the rest of the world has grown by 11% in 2007 reaching $715 billion. "Latin American Exports Reach US$715 Billion". Inter-American Development Bank, December 11, 2007. http://www.iadb.org/research/homepageDetails.cfm?language=English&conid=77&page=1&frame=1 MERCOSUR exports increased 17% in 2007, an estimated $221 billion and the Andean Community’s exports grew by 13% in 2007, a projected $73 billion. "Latin American Exports Reach US$715 Billion". Inter-American Development Bank, December 11, 2007. http://www.iadb.org/research/homepageDetails.cfm?language=English&conid=77&page=1&frame=1 High technology goods exports increased 2.4% to 24.3% of total exports from Latin America since the 1970’s and industrialized goods have increased from 47.4% to 75% of exports while primary goods has fallen from 52% to 24.3% since 1970. Kosacoff, Bernardo; Lopez, Andres; and Pedrazzoli, Mara. "Comercio, inversión y fragmentación del mercado global: ¿está quedando atrás América Latina?" CEPAL - SERIE Estudios y perspectivas - Oficina de la CEPAL en Buenos Aires, #39, Naciones Unidas, julio de 2007

Addendum: Latin America - By the Numbers Figure Source Vale’s $19.4 billion purchase of Canada’s Inco in 2006. Inco.com, August 1, 2008. http://www.inco.com/business/history/# In 2000, Cemex became the largest producer of cement in North America. In 2007 it purchased Australia’s Rinker Group for $16.7 billion. It has almost 67,000 employees worldwide and operates in over 50 countries in 5 continents. Cemex.com, August 1, 2008. http://www.cemex.com/tc/tc_lp.asp CODELCO is the largest producer of copper in the world producing 1.83 million tons of copper or 20% of the world’s supply. Codelco.com, August 1, 2008. http://www.codelco.com/english/la_corporacion/fr_historia.html Embraer is the fourth largest commercial jet producer in the world, producing jets for 37 companies in 24 countries since 1996. It is Brazil’s second largest exporter and 88.2% of its employees are based in Brazil. Embraer.com, August 1, 2008. http://www.embraer.com/english/content/empresa/profile.asp América Móvil is Latin America’s largest privately held public company, it is Latin America’s largest wireless provider and the world’s fourth largest, and held 46% of the market share in Latin America in 2006. América Móvil.com, August 1, 2008. http://www.americamovil.com/ Brazil accounted for 19% of the world’s total infrastructure investment from 1993 to 2003. BRICs and Beyond , Goldman Sachs Global Economics Department, "Chapter 9, Building the BRICs: Infrastructure Opportunities", June 2006. http://www2.goldmansachs.com/ideas/brics/BRICs-and-Beyond.html

Addendum: Latin America - By the Numbers Figure Source Brazil produced roughly 6 billion gallons of sugar cane-based ethanol and this output is projected to increase by 160% by 2016. "In Brazil, sugar-cane ethanol is booming." Jack Chang. The Miami Herald. June 2, 2008. http://www.miamiherald.com/news/americas/story/553903.html Inverandino plans to make the first gallon of sugar-based ethanol in the U.S. and to raise production to 100 million gallons by 2013. "Columbians in U.S. sugar mills to produce ethanol." Gerardo Reyes. The Miami Herald. June 8, 2008. http://www.miamiherald.com/news/americas/story/562380.html Brazil requires that it be 26% ethanol. Columbia currently requires 10% ethanol and increasing to 25% in the next 20 years. The U.S. requires only 3% ethanol. Morgan, Dan. "Brazil's Biofuel Strategy Pays Off as Gas Prices Soar". The Washington Post. June 18, 2005. http://www.washingtonpost.com/wp-dyn/content/article/2005/06/17/AR2005061701440.html

Find out more: Books Economic Growth with Equity. Challenges for Latin America (2006) Edited by Ricardo French-Davis and José Luis Machinea Economic Commission for Latin America and the Caribbean China's Expansion into the Western Hemisphere Implications for Latin America and the United States (2008) Roett, Riordan and Guadalupe Paz Brookings Institution Press The Rise of Transnational Corporations From Emerging Markets: Threat or Opportunity (2008) Karl P. Sauvant

Find out more: Books Access to Financial Services in Brazil (2004) Kumar Anjali World Bank Group Policymaking in Latin America: How Politics Shapes Policies (2008) Editors: Stein, Ernesto; Carlos Scartascini; Pablo T. Spiller; Mariano Tommasi. Inter-American Development Bank Beyond Neoliberalism in Latin America?: Societies and Politics at the Crossroads (2009) Kenneth M. Roberts

Find out more: Books BRICs and Beyond (2006) Goldman Sachs Global Economics Department Downloadable at: http://www2.goldmansachs.com/ideas/brics/BRICs-and-Beyond.html Bond Markets in Latin America: On the Verge of a Big Bang? (2008) Editors: Eduardo Borensztein, Kevin Cowan, Barry Eichengreen, Ugo Panizza. The Political Economy of Macroeconomic Policy Reform in Latin America: The Distributive and Institutional Context (2008) Weisner, Eduardo

Find out more: Articles and Publication “ Adios to poverty, hola to consumption” The Economist, August 16, 2007. http://www.economist.com/displaystory.cfm?story_id=9645142 Alaima, Veronica; Lopez, Humberto.”Oil Intensities and Oil Prices: Evidence for Latin America”, Policy Reasearch Working Paper 4640, The World Bank, June 2008. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/06/03/000158349_20080603090353/Rendered/PDF/wps4640.pdf Amann, Edmund. “Technology, Public Policy, and the Emergence of Brazilian Multinational”, 2008. http://www.brookings.edu/~/media/Files/rc/papers/2008/05_brazil_multinationals_amann/05_brazil_multinationals_amann.pdf Ann, Tan Hwee; Yuan, Helen. “BHP, Rio Tinto, Vale May Increase Iron Ore Prices 30%”, Bloomberg.com, September 27, 2008. http://www.bloomberg.com/apps/news?pid=20601087&sid=a3MsHgljSTLg&refer=home , Barros, Geraldo, “Brazil: The Challenges in Becoming an Agricultural Superpower”, in Lael Brainard and Leonardo Martinez-Diaz (eds.), Brazil as an Economic Superpower? Understanding Brazil’s Changing Role in the Global Economy (Washington, D.C.: Brookings Institution Press, forthcoming). http://www.brookings.edu/~/media/Files/rc/papers/2008/05_brazil_agriculture_barros/05_brazil_agriculture_barros.pdf Basar, Shanny. “Bankers Take the Road to Rio”, Financial News Online, May 5, 2008. http://www.efinancialnews.com/investmentbanking/index/content/2450554308/restricted BRICs and Beyond, Goldman Sachs Global Economics Department, “Chapter 9, Building the BRICs: Infrastructure Opportunities”, June 2006. http://www2.goldmansachs.com/ideas/brics/BRICs-and-Beyond.html

“ Adios to poverty, hola to consumption” The Economist, August 16, 2007. http://www.economist.com/displaystory.cfm?story_id=9645142

Alaima, Veronica; Lopez, Humberto.”Oil Intensities and Oil Prices: Evidence for Latin America”, Policy Reasearch Working Paper 4640, The World Bank, June 2008. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/06/03/000158349_20080603090353/Rendered/PDF/wps4640.pdf

Amann, Edmund. “Technology, Public Policy, and the Emergence of Brazilian Multinational”, 2008. http://www.brookings.edu/~/media/Files/rc/papers/2008/05_brazil_multinationals_amann/05_brazil_multinationals_amann.pdf

Ann, Tan Hwee; Yuan, Helen. “BHP, Rio Tinto, Vale May Increase Iron Ore Prices 30%”, Bloomberg.com, September 27, 2008. http://www.bloomberg.com/apps/news?pid=20601087&sid=a3MsHgljSTLg&refer=home ,

Barros, Geraldo, “Brazil: The Challenges in Becoming an Agricultural Superpower”, in Lael Brainard and Leonardo Martinez-Diaz (eds.), Brazil as an Economic Superpower? Understanding Brazil’s Changing Role in the Global Economy (Washington, D.C.: Brookings Institution Press, forthcoming). http://www.brookings.edu/~/media/Files/rc/papers/2008/05_brazil_agriculture_barros/05_brazil_agriculture_barros.pdf

Basar, Shanny. “Bankers Take the Road to Rio”, Financial News Online, May 5, 2008. http://www.efinancialnews.com/investmentbanking/index/content/2450554308/restricted

BRICs and Beyond, Goldman Sachs Global Economics Department, “Chapter 9, Building the BRICs: Infrastructure Opportunities”, June 2006. http://www2.goldmansachs.com/ideas/brics/BRICs-and-Beyond.html

Find out more: Articles and Publication “ Cross-border Transactions: Spotlight on Latin America”, Ernst & Young, 2007. http://www.ey.com/Global/assets.nsf/International/Spotlight_on_Latin_America/$file/SpotlightLAFinal.pdf Davy, Megan and Noriega, Roger F.. "What if the United States Sneezed and Latin America Didn’t Catch a Cold", American Enterprise Institute for Public Policy Research, No. 3, May 2008. http://www.aei.org/publications/pubID.28049/pub_detail.asp "The Emergence of Latin Multinationals", Deutsche Bank Research, February 28, 2007. http://64.233.167.104/search?q=cache:iEpgu5yJ7s4J:www.oecd.org/dataoecd/36/49/38735408.pdf+emergence+latin+multinationals+deutsche&hl=en&ct=clnk&cd=2&gl=us&client=firefox-a Hall, Gillette; Patrinos, Anthony Hall. "Indigenous Peoples, Poverty and Human Development in Latin America: 1994-200" http://wbln0018.worldbank.org/LAC/lacinfoclient.nsf/8d6661f6799ea8a48525673900537f95/3bb82428dd9dbea785257004007c113d/$FILE/IndigPeoplesPoverty_Exec_Summ_en.pdf Hanson, Stephanie. "FARC, ELN: Colombia Left-Wing Guerrillas", Council on Foreign Relations, March 11, 2008. http://www.cfr.org/publication/9272/farc_eln.html Jeager, Markus. "Long overdue investment grade rating affirms Brazil's increasing economic and financial maturity", Think Tank of Deutsche Bank GroupJune 6, 2008. http://www.dbresearch.com/servlet/reweb2.ReWEB?addmenu=false&chapno=3110&document=PROD0000000000020732&noautotitle=true&rdTitleSource=Url&rwdspl=0&rwnode=DBR_INTERNET_EN-PROD$EM&rwobj=ReDisplay.Start.class&rwsite=DBR_INTERNET_EN-PROD&title=Talking+point Kosacoff, Bernardo; Lopez, Andres; and Pedrazzoli, Mara. "Comercio, inversión y fragmentación del mercado global: está quedando atrá s América Latina?" CEPAL - SERIE Estudios y perspectivas - Oficina de la CEPAL en Buenos Aires, #39, Naciones Unidas, julio de 2007

“ Cross-border Transactions: Spotlight on Latin America”, Ernst & Young, 2007. http://www.ey.com/Global/assets.nsf/International/Spotlight_on_Latin_America/$file/SpotlightLAFinal.pdf

Davy, Megan and Noriega, Roger F.. "What if the United States Sneezed and Latin America Didn’t Catch a Cold", American Enterprise Institute for Public Policy Research, No. 3, May 2008. http://www.aei.org/publications/pubID.28049/pub_detail.asp

"The Emergence of Latin Multinationals", Deutsche Bank Research, February 28, 2007. http://64.233.167.104/search?q=cache:iEpgu5yJ7s4J:www.oecd.org/dataoecd/36/49/38735408.pdf+emergence+latin+multinationals+deutsche&hl=en&ct=clnk&cd=2&gl=us&client=firefox-a

Hall, Gillette; Patrinos, Anthony Hall. "Indigenous Peoples, Poverty and Human Development in Latin America: 1994-200" http://wbln0018.worldbank.org/LAC/lacinfoclient.nsf/8d6661f6799ea8a48525673900537f95/3bb82428dd9dbea785257004007c113d/$FILE/IndigPeoplesPoverty_Exec_Summ_en.pdf

Hanson, Stephanie. "FARC, ELN: Colombia Left-Wing Guerrillas", Council on Foreign Relations, March 11, 2008. http://www.cfr.org/publication/9272/farc_eln.html

Jeager, Markus. "Long overdue investment grade rating affirms Brazil's increasing economic and financial maturity", Think Tank of Deutsche Bank GroupJune 6, 2008. http://www.dbresearch.com/servlet/reweb2.ReWEB?addmenu=false&chapno=3110&document=PROD0000000000020732&noautotitle=true&rdTitleSource=Url&rwdspl=0&rwnode=DBR_INTERNET_EN-PROD$EM&rwobj=ReDisplay.Start.class&rwsite=DBR_INTERNET_EN-PROD&title=Talking+point

Kosacoff, Bernardo; Lopez, Andres; and Pedrazzoli, Mara. "Comercio, inversión y fragmentación del mercado global: está quedando atrá s América Latina?" CEPAL - SERIE Estudios y perspectivas - Oficina de la CEPAL en Buenos Aires, #39, Naciones Unidas, julio de 2007

Find out more: Articles and Publication "Latin American Exports Reach US$715 Billion". Inter-American Development Bank, December 11, 2007. http://www.iadb.org/research/homepageDetails.cfm?language=English&conid=77&page=1&frame=1 “ Latin Multinationals Become Global Headliners”, EconSouth, Volume 9, Number 3, Third Quarter 2007. http://www.frbatlanta.org/invoke.cfm?objectid=1E29A0EF-5056-9F12-12E42A074915EAAA&method=display_body Latinobarametro Report 2007. http://www.latinobarometro.org/ Morgan, Dan. "Brazil's Biofuel Strategy Pays Off as Gas Prices Soar". The Washington Post. June 18, 2005. http://www.washingtonpost.com/wp-dyn/content/article/2005/06/17/AR2005061701440.html Pan-American Health Organization website, http://www.paho.org/English/D/CSU/PS03-07.htm "The Posture Statement of Admiral James G. Stavridis, United States Navy Commander, United States Southern Command before the 110th Congress, 2008". U.S. Southern Command Partnership for the Americas, 2008. http://www.southcom.mil/AppsSC/files/0UI0I1204838891.pdf Rey, Gloria Helena. “Energy-Colombia: Harvesting Sunshine for Biofuels”, Inter Press Service, October 12, 2008. http://ipsnews.net/news.asp?idnews=35088 Sennes, Ricardo Ubiraci, and Narciso, Thais, “Brazil as an International Energy Player”, in Lael Brainard and Leonardo Martinez-Diaz (eds.), Brazil as an Economic Superpower? Understanding Brazil’s Changing Role in the Global Economy (Washington, D.C.: Brookings Institution Press, forthcoming). http://www.brookings.edu/~/media/Files/rc/papers/2008/05_brazil_energy_sennes/05_brazil_energy_sennes.pdf

"Latin American Exports Reach US$715 Billion". Inter-American Development Bank, December 11, 2007. http://www.iadb.org/research/homepageDetails.cfm?language=English&conid=77&page=1&frame=1

“ Latin Multinationals Become Global Headliners”, EconSouth, Volume 9, Number 3, Third Quarter 2007. http://www.frbatlanta.org/invoke.cfm?objectid=1E29A0EF-5056-9F12-12E42A074915EAAA&method=display_body

Latinobarametro Report 2007. http://www.latinobarometro.org/

Morgan, Dan. "Brazil's Biofuel Strategy Pays Off as Gas Prices Soar". The Washington Post. June 18, 2005. http://www.washingtonpost.com/wp-dyn/content/article/2005/06/17/AR2005061701440.html

Pan-American Health Organization website, http://www.paho.org/English/D/CSU/PS03-07.htm

"The Posture Statement of Admiral James G. Stavridis, United States Navy Commander, United States Southern Command before the 110th Congress, 2008". U.S. Southern Command Partnership for the Americas, 2008. http://www.southcom.mil/AppsSC/files/0UI0I1204838891.pdf

Rey, Gloria Helena. “Energy-Colombia: Harvesting Sunshine for Biofuels”, Inter Press Service, October 12, 2008. http://ipsnews.net/news.asp?idnews=35088

Sennes, Ricardo Ubiraci, and Narciso, Thais, “Brazil as an International Energy Player”, in Lael Brainard and Leonardo Martinez-Diaz (eds.), Brazil as an Economic Superpower? Understanding Brazil’s Changing Role in the Global Economy (Washington, D.C.: Brookings Institution Press, forthcoming). http://www.brookings.edu/~/media/Files/rc/papers/2008/05_brazil_energy_sennes/05_brazil_energy_sennes.pdf

Find out more: Articles and Publication Standard & Poor's analysis of Brazil (Federative Republic of), 2007. http://www2.standardandpoors.com/portal/site/sp/en/us/page.article/2,1,1,0,1148443064155.html?vregion=us&vlang=en Wilson, Dominic; Purushothaman, Roopa. "Dreaming with the BRIC's: The path to 2050", Goldman Sachs Global Economics Paper No. 99, 1st October 2003. http://www2.goldmansachs.com/ideas/brics/brics-dream.html World Bank Development Indicators and "Social Cohesion, Inclusion and a sense of belonging in Latin America and the Carribbean" http://www.eclac.org/cgi-bin/getProd.asp?xml=/publicaciones/xml/0/29030/P29030.xml&xsl=/tpl-i/p9f.xsl&base=/tpl/top-bottom.xslt

Standard & Poor's analysis of Brazil (Federative Republic of), 2007. http://www2.standardandpoors.com/portal/site/sp/en/us/page.article/2,1,1,0,1148443064155.html?vregion=us&vlang=en

Wilson, Dominic; Purushothaman, Roopa. "Dreaming with the BRIC's: The path to 2050", Goldman Sachs Global Economics Paper No. 99, 1st October 2003. http://www2.goldmansachs.com/ideas/brics/brics-dream.html

World Bank Development Indicators and "Social Cohesion, Inclusion and a sense of belonging in Latin America and the Carribbean" http://www.eclac.org/cgi-bin/getProd.asp?xml=/publicaciones/xml/0/29030/P29030.xml&xsl=/tpl-i/p9f.xsl&base=/tpl/top-bottom.xslt

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