Technology will drive Latin America’s growth

Latin America’s economic success in the coming years will depend far more on the region’s ability to embrace new technology than on advances in manufacturing, according to the results of a survey of 200 senior business executives and money managers in the United States.

When asked which Latin American country will best exploit the Internet for business, respondents put Mexico first at 39 percent, followed by Brazil at 30 percent, Argentina at 6 percent and Chile at 5 percent.

The survey, which was made public during the IDB’s annual meeting in New Orleans, was commissioned by Fleet-Boston Financial, a U.S. bank holding company. It was conducted by Strategy One, an international polling firm.

When asked to identify the greatest barriers to entry of U.S. investment in the region’s technology sector, 26 percent of the respondents cited “unstable economic conditions,” 19 percent cited “the need to upgrade communications infrastructure,” and 17 percent said “unstable political conditions.”

Fifty-three percent of respondents said that technology/telecommunications will be most important for driving Latin America’s economic growth over the next five years, while 22 percent chose manufacturing and 6 percent said the service industry.