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Exploration of South American Political and Economic Environment in 2011 Niche Market for Hardware

2010-12-02

by Kuo-Ren Lee, Former President of Taiwan Weekly Will the El Nino, global warming, financial crisis, and military conflict making people afraid of disappear? The answer is “almost impossible!” and they will happen again and again. With the answer of “almost impossible,” human will continue to live on the earth, so factories manufacturing hardware, like farmlands producing food, will also continue to produce hardware products. Modern South America seems to find its glory back. The economic growth of Argentina, Brazil, and Chile has exceeded 5% within a few of years, making many countries in North America and the EU envious of their performance. The continuous economic growth of a country and the relative stability of a national politics are absolutely the key factors. The effective continuity of economic policies of a country is also one indispensable factor for the economic growth of a country. The following is the exploration of the political and economic environments of these 3 countries. 1. Former Brazilian President Luiz Inacio Lula da Silva, who is considered to have the most splendid achievement, has successfully consigned his position to the next successor- Dilma Rousseff (the first female President in Brazil). The first female President stands as an important parameter: the economic policies proposed by former President will be definitely going on, which also means that unless an unrecoverable crisis happen, the economy of Brazil is sure to prosper for at least 4 years. What cannot be ignored is Brazil’s consecutive discoveries of oil offshore during these 2 years. 2. When the news of the sudden death of the Former Argentinian President Nestor Kirchner died of a stroke due to overworking reached the entire country, Argentinian society did not result in any chaos politically or economically after the death of former President who led Argentina to step out of economic difficulties. Why didn’t Argentina face political and economic chaos? The reason is simple. Argentina is enjoying the benefits of the effective economic policies proposed by former President and the sitting President is also the wife of already past former President, who still adopts her husband’s policies. As a result, there impossibly exist no unknown variants that will lead to sudden changes of current economic policies. The President Election of Argentina will be held next year. There comes a voice worrying that if this female President could not be re-elected, there would be big changes in the currently effective economic policies in Argentina. This kind of worry is acceptable, however, with the facts and proofs during these years, the key point of its economic growth comes from the force brought by the promotion and encouragement to SME with the devotion of every new President and the force is still developing. Therefore, we can expect that even though the next Argentinian President might be taken by other political party, the ongoing economic policies of Argentina to subsidize SME is believed to continue. 3. President of Chile is a billionaire in the business. His honesty during the tenure should be free from any stain. If this President leads Chile as managing a corporation, the economic growth of Chile will be absolutely amazing. In addition, this billionaire President is the successor appointed by the first female President in Chile. Under her clever power, the stable politics and substantial economic growth in Chile have been recognized and praised worldwide. In view of the analyses of the political and economic environment of these 3 countries, the future economic growth in South America is said to gain several favorable factors. After all, these 3 countries are in the lead in the economic growth of South America. With the support of fast growing economic force from these 3 countries, the GDP of South America will be attracting to everyone in the near future. Another point worth the attention of Taiwanese hardware manufacturers is that there are more and more buildings in construction in these 3 countries, especially in the capital of Argentina. The booming construction industry is like that in Taiwan.