The integration of Latin America as an instrument for post-pandemic economic recovery

Abstract

: Latin America has suffered greatly from the negative effects generated by the measures adopted to prevent the spread of the Covid-19 contagion. In the region, there was a reduction in production, in international trade, among other consequences that led to economic recession. To reverse this scenario, governments adopted several counter-cyclical economic measures. However, the question is: if countries united to face the crisis with the adoption of joint actions, would it be possible to accelerate the process of economic recovery in the region? This article seeks to show that the deepening of regional integration can be an effective measure to accelerate the process of recovery of economic activity. This is because intraregional trade has a great emphasis on manufactures, which ensure a greater spillover effect on the economy. For the analysis, it starts from a quantitative analysis of economic and qualitative data on global value chains to understand how integration can contribute to economic recovery. The article is presented in three parts. The first section presents the effects caused by the health crisis on the economy. The second part discusses the benefits that integration can bring. In the third section, the actions to be implemented to deepen the integration are shown. The study reveals the existence of obstacles that can be overcome if there is political will. For this reason, there is an urgent need for governments to mobilize in favor of a regional project that could benefit all Latin America.