Overview of Latin America: Economy, Education, e-Readiness

Latin America is a region with enormous growth potential. From a geographical perspective, it is blessed with an abundance of natural resources. From a sociological perspective, it is composed of countries that share common languages and similar cultures. The region has long been considered capable of generating tremendous economic wealth, yet it has long been a region plagued with serious political and economic problems.

Latin America did indeed experience modest growth and reduction of poverty throughout the 1960s and 1970s. But in spite of (or perhaps because of) globalism and neoliberal structural adjustment policies of the 1980s and 1990s, Latin America's population became increasingly poor during that time with stagnate, sometimes negative, economic growth.

By the end of the century, the Latin American region had the world's most unequal wealth distribution rate, where, on average, the gap between the richest and poorest populations is 10-15 times greater than the rate in industrialized countries. Of Latin America's 500 million plus people, over 200 million live in poverty and over 94 million live in abject poverty (Armengol, 2002, p. 2-4).

The years 2001 through 2003 saw generally weak or negative GDP in Latin America. Then, in 2004, the region posted its strongest economic performance in 25 years. According to the IMF (2005), Latin America's GDP is expected to grow again during 2005 at a rate of 4.1 percent, followed by growth of 3.8 percent in 2006.

Real GDP and Projected Growth in Latin America
  US$billions 2003 2004 2005 2006
Argentina $152.0 8.8% 9.0% 7.5% 4.2%
Bolivia $8.8 2.8% 3.6% 3.9% 2.5%
Brazil $603.8 0.5% 4.9% 3.3% 3.5%
Chile $94.1 3.7% 6.1% 5.9% 5.8%
Colombia $97.4 4.1% 4.1% 4.0% 4.0%
Costa Rica $18.5 6.5% 4.2% 3.2% 2.7%
Dom. Rep. $19.4 -1.6% 2.0% 4.5% 4.5%
Ecuador $30.3 2.7% 6.9% 2.7% 2.8%
El Salvador $15.8 1.8% 1.5% 2.0% 2.0%
Guatemala $25.9 2.1% 2.7% 3.2% 3.2%
Haiti $3.5 0.5% -3.8% 1.5% 2.5%
Honduras $7.4 3.5% 4.6% 4.2% 4.5%
Mexico $675.2 1.4% 4.4% 3.0% 3.5%
Nicaragua $4.6 2.3% 5.1% 3.5% 4.0%
Panama $13.8 4.3% 6.0% 3.5% 4.0%
Paraguay $6.7 3.8% 4.0% 3.0% 3.5%
Peru $68.6 3.8% 5.1% 4.5% 4.5%
Uruguay $13.3 2.2% 12.3% 6.0% 4.0%
Venezuela $108.2 -7.7% 17.9% 7.8% 4.5%
Latin America and Caribbean $1,959.8 2.2% 5.6% 4.1% 3.8%
Note: Real GDP in current prices in U.S. dollars for 2004.

Sources: IMF World Economic Outlook, Sept. 2005,
Latin Business Chronicle

Brazil and Mexico have been running neck and neck in recent years in the race to be Latin America's largest economy. Brazil had the region's largest GDP until 2001. Mexico's export boom in 2001 helped put it in first place. Then Brazil recaptured the top spot this year (2005) also due to strong export growth.

Mexico, Chile, Uruguay, Argentina, and Brazil (and perhaps Venezuela, Panama, and Costa Rica) can arguably be called Middle Income Countries--or Newly Industrialized Countries (NICS) and are strong enough economically to support on their own significant investments in New Information and Communication Technologies and innovative education programs. And Brazil and Mexico have done just that.

Boff (2004) reports that Brazil has recently embarked on a project called Proformacao, which employs distance learning strategies to increase teacher training in Brazil. The goal was to provide training to 27,000 uncertified teachers in 15 Brazilian states. The very existence of such a project (much less its success) is surprising, especially in light of the Brazilian Ministry of Education's previous conservative, backward, and obstructionist policies regarding distance learning (Litto, 2004). What is especially interesting is that in teaching strategies this is old-fashioned distance learning delivery that depends on the distribution of written materials (study guides, workbooks) and on individual

LATIN AMERICAN
ECONOMIES BY SIZE
2005
In US$ billions and
population in millions
 
GDP
Pop.
Brazil $789.3 184.2
Mexico $758.1 107.0
Argentina $177.3 38.6
Venezuela $131.0 26.7
Colombia $112.3 46.0
Chile $100.7 16.1
Peru $77.2 27.9
Ecuador $32.1 13.0
Guatemala $27.4 12.7
Dom. Rep. $21.9 8.9
Costa Rica $19.6 4.3
El Salvador $16.5 6.9
Uruguay $16.4 3.4
Panama $14.5 3.2
Bolivia $9.3 8.9
Honduras $8.0 7.2
Paraguay $7.0 6.2
Nicaragua $5.0 5.8
Haiti $4.3 8.3
Total 2,329.9* 535.3*
Notes: Real GDP in current prices in U.S. dollars. *Excludes Cuba.

Sources: IMF World Economic Outlook September 2005, Population Reference Bureau: 2005 World Population
Data Sheet,
Latin Business Chronicle

GDP PER CAPITA
In US$ dollars
Mexico $7,183
Chile $6,224
Venezuela $4,956
Uruguay $4,800
Costa Rica $4,526
Panama $4,513
Argentina $4,512
Brazil $4,297
Peru $2,763
Colombia $2,436
Ecuador $2,429
Dom. Rep. $2,424
El Salvador $2,399
Guatemala $1,995
Paraguay $1,120
Honduras $1,086
Bolivia $1,025
Nicaragua $871
Haiti $516
Average $3,162
Note: GDP per capita in current prices in U.S. dollars.

Sources: IMF World Economic Outlook, September 2005,
Latin Business Chronicle.

attention given by tutors, but in program management, it depended on communication networks and computer database management systems. Using technology, the project leaders were able to decentralize functions and manage disparate groups of stakeholders who contributed to the success of the project. They used NICTs not to teach, but to manage the teaching.

Berruecos (2004) reports how the Open University and Distance Education Coordination (CUAED) division of the National Autonomous University of Mexico (UNAM) planned and implemented an ambitious 18-month program to expand distance learning in Mexico. Essentially, they (a) developed their own online learning management system called the "PUEL," (b) took over an abandoned 9,000 square meter textile factory in the State of Tiaxcala and created a Distance Education High Technology Center, where courses are designed, research and training are done, and best practices are disseminated, and (c) they restructured UNAM's old Open University and created a Board of Distance Education. The board coordinates, manages, and evaluates, but essentially functions to decentralize, to use the PUEL system to provide the necessary infrastructure and resources for their schools to offer distance education courses.

E-READINESS

The E-Readiness rankings of 2004 concerns itself with the worlds 64 largest economies, so Haiti, Nicaragua, Bolivia, Honduras, Paraguay, Guatemala, El Salvador, Panama, Costa Rica, and The Dominican Republic don't even make the list. Of the worlds 64 largest economies, Chile is ranked 29th, Brazil 35th, Mexico 31st, Columbia 37th, Venezuela 38th, Peru 41st, and Ecuador 49th. But the report emphasizes that South American governments are recognizing the efficiencies and transparencies of online technologies and are migrating their procurement processes to online platforms. The report also demonstrates that mobile phone usage continues to expand across Latin America. Mobile subscriptions in Latin American countries grew by 18% in 2003 over the previous year (p. 13).

In terms of developing NICTS, perhaps the most ambitious project in Latin America is eMexico. eMexico is a multi-billion dollar project designed to install some 10,000 Digital Community Centers (DCCs) in more than 2,400 municipalities across the entire country. The DCCs are places where the public can have access to computers and the internet and are located primarily in schools, libraries, health centers, post offices and government buildings. eMexico has four primary functions/foci: e-Learning, e-Health, e-Economy, and e-Government. The stated goals of eMexico are to: (a) make government services available and transparent to everyone, (b) distribute health information to everyone, (c) support Mexico's participation in e-business and the global knowledge economy by providing infrastructure for e-commerce, and (d) give every citizen access to eLearning.

One very important point here is that eMexico has not just targeted a few select areas, but the entire country--from urban centers to the remotest villages. And the project has already begun. For internet access, Mexico has contracted SkyStream to provide their data-over satellite technology to connect the 10,000 DCCs with high-speed broadband VSATs (very small aperture terminals). In the first six months of the project, SkyStream installed more than 3,500 VSATs.

The goal is to spend a total of 19 billion US dollars, and it is reported that the government of Mexico has committed at least 1.5 billion dollars (World Report, n.d.). In 2002, Intel promised 1.8 million dollars for scholarships, and Microsoft, in addition to pledging 30 million dollars worth of free software, donated 58 million dollars for training technology teachers and computer programmers (Avila, 2002). Additionally, in 2003, e-Mexico received one of Microsoft's Unlimited Potential (UP) grants to train operators of the DCCs. Microsoft reports that these operators "will be trained in the basic skills necessary to implement and maintain the community centers, serving disadvantaged adults and youth who do not currently have access to computers" (Microsoft, 2003-2005).

The point is, Mexico is taking the necessary steps to provide its citizens with the appropriate infrastructure so that its citizens can participate collaboratively and competitively in the global knowledge economy. But, of course, infrastructure, though a necessary condition, is not a sufficient condition. If infrastructure is the first step towards moving into a knowledge economy, then surely the second step is to to use that infrastructure to build an educated workforce of knowledge workers. And it must be admitted, that despite being the 9th largest economy in the world, Mexico's educational system is in poor shape. Jordan (2004) reports that the "World Economic Forum ranked the quality of education in Mexico 74th out of 102 nations surveyed, just behind Cameroon" (p.1).

Development economists over the years have learned that education initiatives as strategies for economic development are likely to fail if they are not coordinated with additional programs of economic development. While education can almost always be justified for its intrinsic rewards, for its economic rewards, it can often be quite disappointing. In past years, for instance, it has been hardly worth it to train a management/workforce citizenry for industrial jobs, yet have no industry for the citizens to work in.

Miguel Casas Armengol (2002) argues forcefully that there are eight fundamental reforms that can help Latin America address their current economic problems:

  1. adopt knowledge and information technologies
  2. acknowledge the growing importance of globalization
  3. increase social equity for higher education opportunities
  4. adopt new educational technologies in universities
  5. acquire modern technologies and infrastructures
  6. adopt e-Learning and Online
  7. retrain professors, teachers, researchers
  8. adopt new financing and organizational structures to support advances in technological and pedagogical innovations

Essentially, Armengol argues for distance education and NICT.

 

See Works Consulted