Latin America’s relationship with commodities has rarely been happy. Past struggles over the spoils have catalysed coups, inequality and populism. To do better this time round, countries must get several things right
centuries Latin America and its 2bn hectares of land have been a vital source of food, fuel and metals for the world. First looted by colonisers for gold, silver, cotton and sugar, it later supplied rubber and oil to Europe and the United States. Now Latin America faces a chance to become the 21st century’sThe transition to clean energy will spark decades of demand for the metals needed to multiply solar and wind parks, power lines and electric cars.
The region’s draw as a trading partner will be accentuated by superpower rivalries. As the West scrambles to diversify away from China, it wants more deals with Latin America, a largely neutral and peaceful region. As monied rivals also eye its riches, a new great game is under way: just last month Vale, a Brazilian mining company, sold 13% of its green-metal arm to Saudi-owned entities for $3bn; China earmarked $1.
To do better this time round, Latin American countries must get several things right. First they need to make sure the boom does indeed take place. At present, politics is holding it back. As left-wingers and populists have gained power, many countries in the region have passed or threatened laws that would raise taxes, nationalise reserves or shut out foreign investment.
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