From China and Russia to Iran and Greenland, Donald Trump wants everyone to bow to his terms. Latin America and the Caribbean are no exceptions. The reality is that America has long desired to control this region.
The most recent example of America's ambitions is the attempt to control Venezuela. The U.S. allegedly abducted Venezuela’s president from his own country. Trump issued ultimatums to Cuba, threatening consequences unless they complied. He also declared intentions to regain control of the Panama Canal, warning of severe actions if obstructed.
But why control a region with a declining share in global GDP? In 1980, Latin America and the Caribbean contributed 12.3% to global GDP. By 2000, it decreased to 9.4%, and further to 7.2% in 2020, with an IMF forecast of 6.9% by 2030.
Source: aajtak
The region thrives with forests, fertile lands, and freshwater resources. A World Bank report highlights that nearly half of this region is forest-covered, making up 23% of the world's forest area. It also holds 11% of the planet's fertile agricultural land.
Contrastingly, parts of northwestern Argentina, Chile, and Mexico are deserts receiving the most sunlight globally, while northern Colombia and Patagonia have significant wind energy potential.
This region's potential for low-carbon energy production is enticing globally. Its fertile agricultural land has long been tempting for the U.S.
In our semiconductor-driven world, demand for rare earth elements is significant, and Latin America is rich in mineral resources. Over 47% of the world's lithium reserves are here, crucial for lithium-ion batteries that power most electric vehicles.
Moreover, it holds over 36% of the world's copper reserves, with annual global demand expected to grow 1.6% until 2050.
Source: aajtak
The World Bank suggests that a green economy could strategically advantage this region, opening new development and export opportunities. However, it also points out that the land isn’t being optimally used.
