China’s economic slowdown may mark the end of the commodity-based populist cycle in Latin America, in which Venezuela, Bolivia, Ecuador, Argentina and other countries squandered their raw material export booms in feel-good subsidies, instead of investing in infrastructure and education. Granted, the forecasts of China’s imminent collapse may be as exaggerated as the previous conventional wisdom that China would soon overtake the United States as the world’s leading economy. Most likely, China will not collapse, but rather grow at a slower pace.
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