「Asia and Latin America: The Rising South or the End of an Era?」
In the last two decades alone, wealth has shifted so profoundly that the simple, old North-South hierarchy—where the North were the rich few and the South were the many poor countries of the world—is no longer a given. During the commodity boom of the 2000s, average growth rates in Latin America and the Caribbean reached nearly 5 percent. Moreover, income growth of the poorest 40 percent was higher than in any other region of the world, relative to the total population, making growth also equitable.
Global economic activity, however, has slowed down since then and medium-term growth prospects for countries in the region have diminished considerably. This poses new challenges to all developing economies, not only those in Latin America.
Indeed, disappointing growth in major emerging economies around the world raises important concerns, threatening the social gains achieved in the past 15 years, particularly considering that two thirds of the extreme poor in the world still live in middle-income countries.