Miami, 13 September 2010

Traditionally considered a curse for a nation‘s development, commodity wealth in Latin America and the Caribbean (LAC) could - on the contrary - represent a foundation for prosperity, according to a new report released today by the World Bank.

The increased demand for minerals and agricultural commodities from Asian markets, especially China, is contributing to a rebound in economic growth as the region leaves behind the global crisis, according to the flagship publication:

Natural Resources in Latin America and the Caribbean:

Beyond Booms and Busts?

According to the report, in Latin America there has been a substantial shift
from exporting commodities to advanced economies to trading instead with
emerging economies. For example, the United States‘ share as a destination
market declined from 44 percent in 1990 to 37 percent in 2008 - the latest year for which data is available, while China‘s share rose over tenfold during the  same period, from 0.8 percent to 10 percent of total commodity exports. China is Brazil‘s most important market for commodity exports, accounting for almost a fifth of total commodity exports in 2008.

If properly managed, the windfall from this commodity-led recovery can help
LAC seize this growth opportunity by providing governments with greater fiscal space and serving directly as a key source of growth.