It is so ironic. For about the past year, we were hearing over and over that Latin American economies were on fire, recovering from the global recession faster than the developed world (back in December, for example, both ECLAC and the Wall Street Journal, not exactly bosom buddies, were excited). The problem, of course, was that economic growth was dependent largely on high commodity prices, which had become something of a pet peeve of mine.
Thursday, February 17, 2011
A mere two months later, reality sets in. High commodity prices are not so good when you are the buyer, and it is even worse when it's food. In fact, now the UN is concerned about food riots in the poorest Latin American countries because of the rise in prices. The Bolivian government may even stockpile food.