Fears of a commodities trap are once again inflaming politics across Latin America as the world enters a new period of high commodity demand. Latin America produces commodities. This has been both a blessing and a curse throughout Latin American history. Once economies become dependent on commodity exports, it becomes difficult to grow other sectors—the infamous “Dutch disease.” Additionally, commodity extraction often comes with secondary costs, polluting the environment and distorting political systems. For these reasons and more, over decades and centuries, Latin America’s economic dependence on commodity exports has been seen as a type of trap that has held back the region’s development and affected its political stability.

Source: The North Africa Journal November 13, 2023 14:11 UTC