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The Caribbean is a region consisting of the Caribbean Sea, its islands (most of which enclose the sea), and the surrounding coasts. The region is located southeast of the Gulf of Mexico and Northern America, east of Central America, and to the north of South America.

Situated largely on the Caribbean Plate, the region comprises more than 7,000 islands, islets, reefs, and cays. These islands, called the West Indies, generally form island arcs that delineate the eastern and northern edges of the Caribbean Sea. These islands are called the West Indies because when Christopher Columbus landed there in 1492 he believed that he had reached the Indies (in Asia).

The Caribbean region consists of the Antilles, divided into the larger Greater Antilles which bound the sea on the north and the Lesser Antilles on the south and east (including the Leeward Antilles), and the Bahamas and the Turks and Caicos Islands, which are in fact in the Atlantic Ocean north of Cuba, not in the Caribbean Sea.

Geo-politically, the West Indies are usually regarded as a sub-region of North America and are organized into 27 territories including sovereign states, overseas departments, and dependencies. At one time, there was a short-lived country called the Federation of the West Indies composed of ten English-speaking Caribbean territories, all of which were then UK dependencies.

The Caribbean region takes its name from that of the Carib, an ethnic group present in the Lesser Antilles and parts of adjacent South America at the time of European contact. The Caribbean is a region consisting of the Caribbean Sea, its islands (most of which enclose the sea), and the surrounding coasts. The region is located southeast of the Gulf of Mexico and Northern America, east of Central America, and to the north of South America.

The majority of the Caribbean (of the lesser Antilles and Jamaica) has populations of mainly Africans in the French Caribbean, Anglophone Caribbean and Dutch Caribbean, there are minorities of mixed-race and European peoples of Dutch, English, French, Italian, and Portuguese ancestry. Asians, especially those of Chinese and Indian descent, form a significant minority in the region and also contribute to multiracial communities. All of their ancestors arrived in the 19th century as indentured laborers.

The Spanish-speaking Caribbean have primarily mixed race, African, or European majorities. Puerto Rico and Cuba (largest Caribbean island) have a European majority with a mixture of Spaniards–European, Native Americans, and some West African. Cuba has a third of its population of African decent, with a sizable Mulatto (mixed African–European) population. The Dominican Republic has a largely mixed majority who are primarily descended from West Africans and Spaniards, with some Native Americans.

Trinidad and Tobago has a multi-racial cosmopolitan society due to the arrival of the Africans, Indians, Chinese, Syrians, Lebanese, Native Amerindians and Europeans. This multi-racial mix has created sub-ethnicities that often straddle the boundaries of major ethnicities and include Chindian and Dougla.

The geography and climate in the Caribbean region varies. Some islands in the region have relatively flat terrain of non-volcanic origin. These islands include Aruba (possessing only minor volcanic features), Barbados, Bonaire, the Cayman Islands, Saint Croix, The Bahamas or Antigua. Others possess rugged towering mountain-ranges like the islands of Cuba, Hispaniola, Puerto Rico, Jamaica, Dominica, Montserrat, Saba, Saint Kitts, Saint Lucia, Saint Thomas, Saint John, Tortola, Grenada, Saint Vincent, Guadeloupe, Martinique , and Trinidad & Tobago.

The climate of the region is tropical but rainfall varies with elevation, size and water currents (cool upwellings keep the ABC islands arid). Warm, moist tradewinds blow consistently from the east creating rainforest/semidesert divisions on mountainous islands. Occasional northwesterlies affect the northern islands in the winter. The region enjoys year-round sunshine, divided into 'dry' and 'wet' seasons, with the last six months of the year being wetter than the first half.

The waters of the Caribbean Sea host large, migratory schools of fish, turtles, and coral reef formations. The Puerto Rico trench, located on the fringe of the Atlantic Ocean and Caribbean Sea just to the north of the island of Puerto Rico, is the deepest point in all of the Atlantic Ocean.

Hurricanes, which at times batter the region, usually strike northwards of Grenada, and to the west of Barbados. The principal hurricane belt arcs to northwest of the island of Barbados in the Eastern Caribbean.

The region sits in the line of several major shipping routes with the man-made Panama Canal connecting the western Caribbean Sea with the Pacific Ocean.

List of islands in the Caribbean
Anguilla (British overseas territory)
Antigua and Barbuda
Aruba (part of the Kingdom of the Netherlands)
Bahamas
Barbados
British Virgin Islands (British overseas territory)
Cayman Islands (British overseas territory)
Cuba
Dominica
Dominican Republic
Grenada
Guadeloupe (overseas department of France)
Haiti
Jamaica
Martinique (overseas department of France)
Montserrat (British overseas territory)
Netherlands Antilles (part of the Kingdom of the Netherlands)
Puerto Rico (commonwealth of the United States)
Saint Barthélemy (overseas collectivity of France)
Saint Kitts and Nevis
Saint Lucia
Saint Martin (overseas collectivity of France)
Saint Vincent and the Grenadines
Trinidad and Tobago
Turks and Caicos Islands (British overseas territory)
United States Virgin Islands (territory of the United States)


The population of the Caribbean is estimated to have been around 750,000 immediately before European contact, although lower and higher figures are given. After contact, genocide and disease led to a decline in the Native American population. From 1500 to 1800 the population rose as slaves arrived from West Africa such as the Kongo, Igbo, Akan, Fon and Yoruba as well as military prisoners and captured slaves from Ireland, who were deported during the Cromwellian reign in England. Immigrants from Britain, Italy. France, Spain, the Netherlands, Portugal and Denmark also arrived, although the mortality rate was high for both groups.

The population is estimated to have reached 2.2 million by 1800. Immigrants from India, China, and other countries arrived in the 19th century.[19] After the ending of the Atlantic slave trade, the population increased naturally. The total regional population was estimated at 37.5 million by 2000.

Puerto Cruz beach in Margarita Island, VenezuelaThe majority of the Caribbean (of the lesser Antilles and Jamaica) has populations of mainly Africans in the French Caribbean, Anglophone Caribbean and Dutch Caribbean, there are minorities of mixed-race and European peoples of Dutch, English, French, Italian, and Portuguese ancestry. Asians, especially those of Chinese and Indian descent, form a significant minority in the region and also contribute to multiracial communities. All of their ancestors arrived in the 19th century as indentured laborers.

The Spanish-speaking Caribbean have primarily mixed race, African, or European majorities. Puerto Rico and Cuba (largest Caribbean island) have a European majority with a mixture of Spaniards–European, Native Americans, and some West African. Cuba has a third of its population of African decent, with a sizable Mulatto (mixed African–European) population. The Dominican Republic has a largely mixed majority who are primarily descended from West Africans and Spaniards, with some Native Americans.

Trinidad and Tobago has a multi-racial cosmopolitan society due to the arrival of the Africans, Indians, Chinese, Syrians, Lebanese, Native Amerindians and Europeans. This multi-racial mix has created sub-ethnicities that often straddle the boundaries of major ethnicities and include Chindian and Dougla.

Caribbean societies are very different from other Western societies in terms of size, culture, and degree of mobility of their citizens. The current economic and political problems which the states face individually are common to all Caribbean states. Regional development has contributed to attempts to subdue current problems and avoid projected problems. From a political economic perspective, regionalism serves to make Caribbean states active participants in current international affairs through collective coalitions. In 1973, the first political regionalism in the Caribbean Basin was created by advances of the English-speaking Caribbean nations through the institution known as the Caribbean Common Market and Community (CARICOM).

Certain scholars have argued both for and against generalizing the political structures of the Caribbean. On the one hand the Caribbean states are politically diverse, ranging from communist systems such as Cuba toward more capitalist Westminster-style parliamentary systems as in the Commonwealth Caribbean. Other scholars argue that these differences are superficial, and that they tend to undermine commonalities in the various Caribbean states. Contemporary Caribbean systems seem to reflect a “blending of traditional and modern patterns, yielding hybrid systems that exhibit significant structural variations and divergent constitutional traditions yet ultimately appear to function in similar ways.” The political systems of the Caribbean states share similar practices.

The influence of regionalism in the Caribbean is often marginalized. Some scholars believe that regionalism cannot not exist in the Caribbean because each small state is unique. On the other hand, scholars also suggest that there are commonalities amongst the Caribbean nations that suggest regionalism exists. “Proximity as well as historical ties among the Caribbean nations has led to cooperation as well as a desire for collective action.” These attempts at regionalization reflect the nations' desires to compete in the international economic system.

Furthermore, a lack of interest from other major states promoted regionalism in the region. In recent years the Caribbean has suffered from a lack of U.S. interest. “With the end of the Cold War, U.S. security and economic interests have been focused on other areas. As a result there has been a significant reduction in U.S. aid and investment to the Caribbean.” The lack of international support for these small, relatively poor states, helped regionalism prosper.

Following the Cold War another issue of importance in the Caribbean has been the reduced economic growth of some Caribbean States due to the United States and European Union's allegations of special treatment toward the region by each other.

The United States under President Bill Clinton launched a challenge in the World Trade Organization against the EU over Europe's preferential program, known as the Lomé Convention, which allowed banana exports from the former colonies of the Group of African, Caribbean and Pacific states (ACP) to enter Europe cheaply.[26] The World Trade Organization sided in the United States' favour and the beneficial elements of the convention to African, Caribbean and Pacific states has been partially dismantled and replaced by the Cotonou Agreement.

During the US/EU dispute the United States imposed large tariffs on European Union goods (up to 100% on some imports) from the EU in order to pressure Europe to change the agreement with the Caribbean nations in favour of the Cotonou Agreement.

Farmers in the Caribbean have complained of their falling profits and rising costs. Some farmers have faced increased pressure to turn towards the cultivation of illegal drugs, which has a higher profit margin and fills the sizable demand for these illegal drugs in North America and Europe.

The European Union has also taken issue with US based taxation extended to US companies via the Caribbean countries. The EU instituted a broad labeling of many nations as tax havens by the France-based OECD. The United States has not been in favor of shutting off the practice yet, mainly due to the higher costs that would be passed on to US companies via taxation. Caribbean countries have largely countered the allegations by the OECD by signing more bilateral information sharing deals with OECD members, thus reducing the dangerous aspects of secrecy, and they have strengthened their legislation against money laundering and on the conditions under which companies can be based in their nations. The Caribbean nations have also started to more closely cooperate in the Caribbean Financial Action Task Force and other instruments to add oversight of the offshore industry.

One of the most important associations that deal with regionalism amongst the nations of the Caribbean Basin has been the Association of Caribbean States (ACS). Proposed by CARICOM in 1992, the ACS soon won the support of the other countries of the region. It was founded in July 1994. The ACS maintains regionalism within the Caribbean on issues which are unique to the Caribbean Basin. Through coalition building, like the ACS and CARICOM, regionalism has become an undeniable part of the politics and economics of the Caribbean. The successes of region-building initiatives are still debated by scholars, yet regionalism remains prevalent throughout the Caribbean.

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The site of advanced Amerindian civilizations, Mexico came under Spanish rule for three centuries before achieving independence early in the 19th century. A devaluation of the peso in late 1994 threw Mexico into economic turmoil, triggering the worst recession in over half a century. The nation had been making an impressive recovery until the global financial crisis hit in late 2008. Ongoing economic and social concerns include low real wages, underemployment for a large segment of the population, inequitable income distribution, and few advancement opportunities for the largely Amerindian population in the impoverished southern states. The elections held in 2000 marked the first time since the 1910 Mexican Revolution that an opposition candidate - Vicente FOX of the National Action Party (PAN) - defeated the party in government, the Institutional Revolutionary Party (PRI). He was succeeded in 2006 by another PAN candidate Felipe CALDERON. In January 2009, Mexico assumed a nonpermanent seat on the UN Security Council for the 2009-10 term.

Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Trade with the US and Canada has nearly tripled since the implementation of NAFTA in 1994. Mexico has free trade agreements with over 50 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. In 2007, during its first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass pension and fiscal reforms. The administration passed an energy reform measure in 2008, and another fiscal reform in 2009. Mexico's GDP plunged 6.5% in 2009 as world demand for exports dropped and asset prices tumbled, but GDP is expected to post positive growth late in 2010. The administration continues to face many economic challenges, including improving the public education system, upgrading infrastructure, modernizing labor laws, and fostering private investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and creating jobs.

Mexico is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico. Covering almost 2 million square kilometres (over 760,000 sq mi), Mexico is the fifth-largest country in the Americas by total area and the 14th largest independent nation in the world. With an estimated population of 111 million, it is the 11th most populous country and the most populous Hispanophone country on earth. Mexico is a federation comprising thirty-one states and a Federal District, the capital city.

In Pre-Columbian Mesoamerica many cultures matured into advanced civilizations such as the Olmec, the Toltec, the Teotihuacan, the Zapotec, the Maya and the Aztec before the first contact with Europeans. In 1521, Spain conquered and colonized the territory, which was administered as the viceroyalty of New Spain which would eventually become Mexico as the colony gained independence in 1821. The post-independence period was characterized by economic instability, territorial secession and civil war, including foreign intervention, two empires and two long domestic dictatorships. The latter led to the Mexican Revolution in 1910, which culminated with the promulgation of the 1917 Constitution and the emergence of the country's current political system. Elections held in July 2000 marked the first time that an opposition party won the presidency from the Institutional Revolutionary Party.

As a regional power, and since 1994 the first Latin American member of the Organisation for Economic Co-operation and Development (OECD), Mexico is firmly established as an upper middle-income country, and is considered a newly industrialized country and an emerging power. It has the 13th largest nominal GDP and the 11th largest by purchasing power parity. The economy is strongly linked to those of its North American Free Trade Agreement (NAFTA) partners, especially the United States, as well as tourism, being the world's tenth most visited country with over 21.4 million international arrivals. Mexico boasts a long tradition in the arts, renowned cuisine, and culture, as it ranks fifth in the world and first in the Americas with 29 UNESCO World Heritage Sites.

Mexico is located at about 23° N and 102° W in the southern portion of North America. Almost all of Mexico lies in the North American Plate, with small parts of the Baja California peninsula on the Pacific and Cocos Plates. Geophysically, some geographers include the territory east of the Isthmus of Tehuantepec (around 12% of the total) within Central America. Geopolitically, however, Mexico is entirely considered part of North America, along with Canada and the United States.

Mexico's total area is 1,972,550 km2 (761,606 sq mi), making it the world's 14th largest country by total area, and includes approximately 6,000 km2 (2,317 sq mi) of islands in the Pacific Ocean (including the remote Guadalupe Island and the Revillagigedo Islands), Gulf of Mexico, Caribbean, and Gulf of California. On its north, Mexico shares a 3,141 km (1,952 mi) border with the United States. The meandering Río Bravo del Norte (known as the Rio Grande in the United States) defines the border from Ciudad Juárez east to the Gulf of Mexico. A series of natural and artificial markers delineate the United States-Mexican border west from Ciudad Juárez to the Pacific Ocean. On its south, Mexico shares an 871 km (541 mi) border with Guatemala and a 251 km (156 mi) border with Belize.

A view of the Popocatépetl volcano from the Atlixco valley. Popocatépetl is an active volcano and is the second highest peak in Mexico. Topographic map of MexicoMexico is crossed from north to south by two mountain ranges known as Sierra Madre Oriental and Sierra Madre Occidental, which are the extension of the Rocky Mountains from northern North America. From east to west at the center, the country is crossed by the Trans-Mexican Volcanic Belt also known as the Sierra Nevada. A fourth mountain range, the Sierra Madre del Sur, runs from Michoacán to Oaxaca.

As such, the majority of the Mexican central and northern territories are located at high altitudes, and the highest elevations are found at the Trans-Mexican Volcanic Belt: Pico de Orizaba (5,700 m, 18,701 ft), Popocatépetl (5,462 m, 17,920 ft) and Iztaccíhuatl (5,286 m, 17,343 ft) and the Nevado de Toluca (4,577 m, 15,016 ft). Three major urban agglomerations are located in the valleys between these four elevations: Toluca, Greater Mexico City and Puebla.

Snowfall is common in the mountainous area of the Sierra Madre del SurThe Tropic of Cancer effectively divides the country into temperate and tropical zones. Land north of the twenty-fourth parallel experiences cooler temperatures during the winter months. South of the twenty-fourth parallel, temperatures are fairly constant year round and vary solely as a function of elevation. This gives Mexico one of the world's most diverse weather systems.

Areas south of the twenty-fourth parallel with elevations up to 1,000 m (3,281 ft) (the southern parts of both coastal plains as well as the Yucatán Peninsula), have a yearly median temperature between 24 to 28 °C (75.2 to 82.4 °F). Temperatures here remain high throughout the year, with only a 5 °C (9 °F) difference between winter and summer median temperatures. Both Mexican coasts, except for the south coast of the Bay of Campeche and northern Baja, are also vulnerable to serious hurricanes during the summer and fall. Although low-lying areas north of the twentieth-fourth parallel are hot and humid during the summer, they generally have lower yearly temperature averages (from 20 to 24 °C or 68 to 75.2 °F) because of more moderate conditions during the winter.

Many large cities in Mexico are located in the Valley of Mexico or in adjacent valleys with altitudes generally above 2,000 m (6,562 ft). This gives them a year-round temperate climate with yearly temperature averages (from 16 to 18 °C or 60.8 to 64.4 °F) and cool nighttime temperatures throughout the year.

Many parts of Mexico, particularly the north, have a dry climate with sporadic rainfall while parts of the tropical lowlands in the south average more than 2,000 mm (78.7 in) of annual precipitation. For example, many cities in the north like Monterrey, Hermosillo, and Mexicali experience temperatures of 40 °C (104 °F) or more in summer. In the Sonoran desert temperatures reach 50 °C (122 °F) or more. Northern Mexico is characterized by desert because it is located in a latitude where all deserts around the globe are formed.

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Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. Most of Central America is considered to be part of the Mesoamerican biodiversity hotspot.

Central America has an area of 524,000 square kilometers (202,000 sq mi), or almost 0.1% of the Earth's surface. As of 2009, its population was estimated at 41,739,000. It has a density of 79 people per square kilometer or 206 people per square mile.

Central America and the Caribbean Plate.Physiographically, Central America is the tapering isthmus of southern North America, extending from the Isthmus of Tehuantepec in southern Mexico southeastward to the Isthmus of Panama where it connects to the Colombian Pacific Lowlands in northwestern South America. Alternatively, the Trans-Mexican Volcanic Belt delimits the region on the north. Central America has an area of some 592,000 square kilometres. The Pacific Ocean lies to the southwest, the Caribbean Sea lies to the northeast, and the Gulf of Mexico lies to the north. Most of Central America rests atop the Caribbean Plate.

The region is geologically active, with volcanic eruptions and earthquakes occurring from time to time. In 1976 Guatemala was hit by a major earthquake, killing 23,000 people; Managua, the capital of Nicaragua, was devastated by earthquakes in 1931 and 1972, the last one killed about 5,000 people; three earthquakes devastated El Salvador, one in 1986 and two in 2001; one earthquake devastated northern and central Costa Rica in 2009 killing at least 34 people; in Honduras a powerful earthquake killed 7 people in 2009.

Volcanic eruptions are common in the region. In 1968 the Arenal Volcano, in Costa Rica, erupted and killed 87 people. Fertile soils from weathered volcanic lavas have made it possible to sustain dense populations in the agriculturally productive highland areas.

Central America has many mountain ranges; the longest are the Sierra Madre de Chiapas, the Cordillera Isabelia and the Cordillera de Talamanca. Between the mountain ranges lie fertile valleys that are suitable for the people; in fact most of the population of Honduras, Costa Rica and Guatemala live in valleys. Valleys are also suitable for the production of coffee, beans and other crops.

Central America is going through a process of political, economic and cultural transformation that started in 1907 with the creation of the Central American Court of Justice. In 1951 the integration process continued with the signature of the San Salvador Treaty that created the ODECA, the Organization of Central American States. Unfortunately, the ODECA was not completely successful due to internal conflicts between several states of the region.

It was until 1991 that the integration agenda was completed with the creation of the SICA, Sistema para la Integración Centroamericana or System for the Central American Integration. The SICA provided a clear legal base to avoid discrepancies between the member states. The SICA membership includes the 7 nations of Central America plus the Dominican Republic, a state that is part of the Caribbean.

On December 6, 2008 SICA announced an agreement to pursue a common currency and common passport for the member nations. No timeline for implementation was discussed.

Central America already has several supranational institutions such as the Central American Parliament, the Central American Bank for Economic Integration and the Central American Common Market.

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South America is the southern continent of America, situated in the Western and Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. It is bordered on the west by the Pacific Ocean and on the north and east by the Atlantic Ocean; North America and the Caribbean Sea lie to the northwest.

America was named in 1507 by cartographers Martin Waldseemüller and Matthias Ringmann after Amerigo Vespucci, who was the first European to suggest that the newly discovered lands were not India, but a New World unknown to Europeans.

South America has an area of 17,840,000 square kilometers (6,890,000 sq mi), or almost 3.5% of the Earth's surface. As of 2005, its population was estimated at more than 371,090,000. South America ranks fourth in area (after Asia, Africa, and North America) and fifth in population (after Asia, Africa, Europe, and North America).

South America occupies the southern portion of the landmass sometimes referred to as the New World. The continent is generally delimited on the northwest by the Darién watershed along the Colombia Panama border, or (according to some sources) by the Panama Canal which transects the Isthmus of Panama. Geopolitically and geographically all of Panama including the segment east of the Panama Canal in the isthmus is typically included in North America alone and among the countries of Central America. Almost all of mainland South America sits on the South American Plate.

Many of the islands of the Caribbean (or West Indies) e.g. the Leeward and Lesser Antilles, sit atop the Caribbean Plate, a tectonic plate with a diffuse topography. The islands of Aruba, Barbados, Trinidad, and Tobago sit on the northerly South American continental shelf. The Netherlands Antilles and the federal dependencies of Venezuela lie along the northerly South American shelf. Geopolitically, the island states and overseas territories of the Caribbean are generally grouped as a part or subregion of North America. The South American nations that border the Caribbean Sea—including Colombia, Venezuela, Guyana, Suriname, and French Guiana—are also known as Caribbean South America. Other islands are the Galápagos islands that belong to Ecuador and Easter Island (in Oceania but belongs to Chile), Robinson Crusoe Island, Chiloé, and the Tierra del Fuego.

South America is home to the world's highest waterfall, Angel Falls in Venezuela; the largest river (by volume), the Amazon River; the longest mountain range, the Andes (whose highest mountain is Aconcagua at 6,962 m [22,841 ft]); the driest place on earth, the Atacama Desert; the largest rainforest, the Amazon Rainforest; the highest capital city, La Paz, Bolivia; the highest commercially navigable lake in the world, Lake Titicaca; and, excluding research stations in Antarctica, the world's southernmost permanently inhabited community, Puerto Toro, Chile.

South America's major mineral resources are gold, silver, copper, iron ore, tin, and petroleum. The many resources of South America have brought high income to its countries especially in times of war or of rapid economic growth by industrialized countries elsewhere. However, the concentration in producing one major export commodity often has hindered the development of diversified economies. The fluctuation in the price of commodities in the international markets has led historically to major highs and lows in the economies of South American states, often causing extreme political instability. This is leading to efforts to diversify production to drive away from staying as economies dedicated to one major export.

South America is one of the most biodiverse continents on earth. South America is home to many interesting and unique species of animals including the llama, anaconda, piranha, jaguar, vicuña, and tapir. The Amazon rainforests possess high biodiversity, containing a major proportion of the Earth's species. Regions in South America include the Andean States, the Guianas, the Southern Cone, and Brazil which is the largest country by far, in both area and population.

During the last 2 decades, South American countries have experienced significant economic growth, which can be seen in many of these countries with the construction of new skyscrapers like the Gran Costanera tower in Chile, and also transportations systems like the Bogota Metro. However, because of histories of high inflation in nearly all South American countries, interest rates remain high and investment remains low. Interest rates are usually twice that of the United States. For example, interest-rates are about 22% in Venezuela and 23% in Suriname. The exception is Chile, which has been implementing free market economic policies since establishing military dictatorship in 1973 and has been increasing its social spending since the return of democratic rule in the early 1990s. This has led to economic stability and interest rates in the low single digits.

South America relies heavily on the exporting of goods and natural resources. On an exchange rate basis Brazil (the seventh largest economy in the world and the second largest in America) leads the way in total amount of exports at $137.8 billion dollars followed by Chile at 58.12 billion and Argentina with 46.46 billion.

The economic gap between the rich and poor in most South American nations is considered to be larger than in most other continents. In Venezuela, Paraguay, Bolivia and many other South American countries, the richest 20% may own over 60% of the nation's wealth, while the poorest 20% may own less than 5%. This wide gap can be seen in many large South American cities where makeshift shacks and slums lie adjacent to skyscrapers and upper-class luxury apartments.





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