CRISIS OF CONFIDENCE BATTERS SOUTH AMERICAN EXPENDITURE.(Brief Article)

Market Latin America | October 1, 2002 | Copyright

South American households and businesses alike are cutting back on expenditure as confidence in the region's economic future falters. Commercial and industrial expenditure will be particularly hard hit as businesses find it increasingly difficult to borrow money for expansion. This comes at a time when foreign direct investment is being diverted to developing nations in Asia and Eastern Europe where investment risk is deemed to be lower.

Part of the problem lies in the fact that confidence in free-market capitalism has declined, but no viable alternative model has ...

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