Paraguay

Paraguay or the Republic of Paraguay as it is more officially known is one amongst the only two countries in South America that is landlocked. The other one is Bolivia. Paraguay is conveniently situated along Paraguay River’s beautiful banks. It borders Argentina, Brazil and Bolivia.

The economy of Paraguay is being marked by its huge informal sector that thrives on the re-exportation to actual neighboring countries of imported consumer-type goods; along with their thousands of small sized business enterprises.

The economic activity in Paraguay is more focused on their agriculture, cattle ranching and agribusiness. They are, in fact, considered as the 3rd largest soybean exporter worldwide. Beef exports are even proven to be substantial for their country.

Paraguay's Problems and Government Actions 

Some of the major setbacks Paraguay faces would be due to their political instability, slow structural reforms and corruption. Thus, the economic potential of Paraguay faces historical constraints because of their landlocked geography. They can only access the Atlantic Ocean through the Parana River. Being landlocked has set Paraguay to be highly dependent on Argentina and Brazil.

Various treaties have given Paraguay the opportunity to be granted free ports in Uruguay, Argentina and Brazil. They are very well regarded in the sub category of “Protecting their Investors”. Thus, amidst this ranking, Paraguay is still considered an unequal and poor society. Most of the people in the rural areas of Paraguay even lack the monthly income to support their basic needs. Inequality is also a major issue that separates the elite from the landless citizens of Paraguay.

With much help from the World Bank, the Government of Paraguay was able to tackle an overall reduction for their infant and maternal mortality. Projects like The Mother and Child Basic Health Insurance Project has helped reduce these mortality issues. It even increased the usage of life-saving services.  This project also improved the efficiency and quality of the service network which I only within certain areas.

Peru

Peru or the Republic of Peru is on the western portion of South America. It is bordered by the Pacifica Ocean and several nations; namely Ecuador, Colombia, Brazil, Bolivia, Chile. It is said that the Peruvian territory was the Inca Empire’s and Norte Chico civilization’s home. It is considered as the largest Pre-Columbian American state and also the oldest worldwide.

Peru had encountered a lot of issues in the past. They went through periods of fiscal crisis and political unrest. Aside from this, they were on the verge of economic upswing and instability.

Thus, Peru is a being flagged as a developing country. Although half of Peru’s   population is poor, with 25% being extremely poor; their export sector helped Peru’s economic performance provide actual hard currency, for payments of their external debts and for financing their imports. 

Much of Peru’s economic growth can be traced to different factors like improved trade terms, rise of investment and consumption; along with their macroeconomic stability. 

Suriname

Suriname or the Republic of Suriname is situated on the northern portion of South America. It used to be known as Dutch Guiana or Netherlands Guiana. This is because it stands in between Guyana and French Guiana. It is bordered by Brazil, the Atlantic Ocean, Marowijne River along French Guiana.

Suriname’s economy is said to be dominated by their industry of bauxite. This industry actually accounts for a GDP of over 15% and export earnings of exactly 70%. Bananas and rice are their other chief products.

Just recently, there were reports that Suriname already started exploiting their gold and oil reserves. This would add to their other sectors like agriculture that has about a quarter of Surname’s population working for this area.

The US, Netherlands and a few Caribbean countries are the trade partners of Suriname; which plays a large part on the nation’s economy. This is why Suriname became very dependent of trade with other countries.

Suriname encountered a major setback during the Wijdenbosch reign of government; when Wijdenbosch decided to end their previous government’s program on structural adjustment. The reason of Wijdenbosch would be the program’s unfair blow on their society’s poorer elements. This decision made Suriname’s tax revenues fall, as their old taxes began to lapse. Plus the fact that the new government failed in implementing newer tax alternatives. This had caused a severe chain of events. On the latter part of 1997, the relationship of the Netherlands with the Surinamese Government deteriorated and the allocation of new funds for new Dutch developments was frozen. Their economy experienced a major slowdown and brought declines in their construction, utility and mining sectors.

Annual problems came into view for Suriname’s government. These would be their poor collection of taxes, foreign aid reduction, bloating of their civil service and government expenditures that were already rampant. All these led to their fiscal deficit that was estimated at about 11%.

Monetary expansion was the solution the Surinamese Government resorted to; in order to cover their growing deficits. It is just sad that this led a somewhat dramatic increase, instead of their expected decrease, in inflation. Growth is still slow, but the Surinamese Government continuous to find ways to resolve their issues.

Uruguay

The Eastern Republic of Uruguay or simply Uruguay is situated in South America’s southeastern portion. Uruguay has a population of more than 3.3 million. About 17. Million of it inhabitants are residing in their metropolitan area and capital, Montevideo.

Uruguay is bordered by Brazil, Argentina, the Uruguay River, the Atlantic Ocean and the estuary of Rio de la Plata. Thus, it is also considered as South America’s 2nd smallest independent nation. It is only quite larger than the French Overseas Department of French Guiana and Suriname.

Uruguay’s economy is largely dependent on world trade and agriculture. In fact, changes on global prices severely affect this nation. Amidst this concern, it holds a solid and strong reputation with its investors. In fact, their economy is far more stable than Uruguay’s surrounding areas.

One good remark about Uruguay, as per Transparency International, is the fact that among other countries in Latin America, corruption is not rampant in Uruguay. Thus, Uruguay is considered as Latin America’s 2nd least corrupt nation. Their labor and political conditions are set among the continents freest. 

Just last year, it was announced as the American Continent’s 2nd and Latin America’s 1st country that recognizes civil unions of the same-sex at an actual national level.  

More about the Economy 

Uruguay is said to have a middle income-type of economy. A sector on State services, industry and agriculture are the ones mainly dominating Uruguay’s economy. This nation heavily relies on trade, especially on agricultural exports. This left the country with global economic slowdowns; and vulnerability to actual lumps on commodity prices.

Amidst the gravity of their trade shocks, financial indicators of Uruguay remained more stable than of their neighbors. This reflected a solid reputation on Uruguay’s investors. Thus, Uruguay shifted their focus recently on the development and commercial use of the IT Technology. Uruguay is Latin America’s 1st exporter of computer software.    

Thus, Uruguay continuously struggles with the constant rising of unemployment, falling of wages and the actual devaluation of the peso. Their government is finding the necessary means to resolve their worsening economic condition.

Venezuela

Venezuela or the Bolivarian Republic of Venezuela, as it is more officially known, is situated in South America’s northern coast. Their country consists of numerous islands and a continental mainland; which borders Guyana, Brazil and Colombia; along with Trinidad and Tobago, St Lucia, Grenada, Curacao, Barbados, Aruba, Bonaire, Leeward Antilles; and Saint Vincent and the Grenadines.

Venezuela is more of a tropical country since its location is very close to the actual equator, on the Northern Hemisphere. It is stated that Venezuela used to be under Spanish colonization. It was 1821 when they became an independent republic.

Venezuela has a strong territorial dispute with two of its neighboring countries. Concerning the so-called Esquibo area, it has a dispute with Guyana. Concerning the Gulf of Venezuela, they have a dispute with Colombia. In fact, last 1985, there was an actual Venezuelan Boundary Crisis.

The Renowned Industry 

The Bolivarian Republic of Venezuela or simply Venezuela is now widely known for their petroleum industry, their natural features and their environmental diversity. Thus, Venezuela is amongst the 17 most mega-diverse nations worldwide. They are also Latin America’s most urbanized country.

Venezuela’s major cities would include Caracas, Valencia, Maracaibo, Barquisimeto, Maracay, Ciudad Guayana and Merida. Among all these, Merida is the most popular to tourists. Thus, their capital city is Caracas. Venezuela is also popular with regards to having varieties of heavily protected habitats and a diversified wildlife.

It would be their petroleum sector that dominates the mixed economy of Venezuela. It actually accounts to about a third of their GDP. It also comprises of about 80% of their exports and more than 50% of their governmental revenues. 

Hence, Venezuela’s chief petroleum deposits are conveniently located beneath and around their Lake Maracaibo and the Gulf of Venezuela; which surrounds the Orinoco River. This is the exact location where Venezuela’s biggest reserve located.