Zottele Allende, Aníbal Carlos & Zottele de Vega, Esteban
Contribution to the Analysis of Recent Economic Changes: China and Latinamerica in the World Economic Order
The contemporary global crisis has its greatest concrete and deep manifestation in the Eurozone debacle. With Germany as an exception, Western European countries are not only suffering the consequences of a broken financial system, but a major proportion of their societies are also experiencing a decline in material living conditions.
This situation falls within the context of a relative decline in the participation of developed Western countries in global GDP that started in the 1970s with the convertibility of the dollar, the U.S. defeat in the Vietnam War and the emergence of new competing countries with the efficient industrial activity. It has prompted a decline in profit rates and waiver of the production of the most important commodities in Western societies.
Many authors agree that all of these factors have contributed to a shift of economic power from the U.S. and Europe to China and other Asian countries.
The central question is whether this transition can be achieved without major turbulence or the new order will replace the institutions that emerged after World War and in that process creates a conflictive process of change. The impact of these phenomena in Latin America will also be analyzed.
A review of thinkers like Adam Smith, Giovanni Arrigui, Joseph Schumpeter, Ha-Joo Chang, Gunder Frank and Immanuel Wallerstein will also be conducted.
Finally, parameters that should lead to this new world economic order and the possibility that China will become a reference based on its historical values are set as follows:
-An ethical sense of equality in the world makes achieve from improving the living conditions of the vast majority of the population
-Respect for diversity, harmony and world peace.
November, 2012. Beijing, China.