Geography is destiny. Brazil needs to take over Argentina's sphere of influence to escape an economic trap. Stratfor's eye-opening analysis puts South America in a new light.
Linked by Mauldin's Outside The Box.
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| High capital investment was needed to reach and develop farmland. The legacy is farms dominated by large landholders, unlike the US where small farmers could head inland and in a few years be shipping product on the Mississippi system for less than 1/10th the cost of land transport. |
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Coastal cities are trapped in enclaves without direct
connection roads. A navy and an Atlantic alliance are
needed to defend them. No navigable rivers reach the coast. Inland investment is capital intense. Brazil on the south starts where the navigable river waters end and is gaining economic influence in Uruguay and Paraguay which have cheap water transport to the ocean. |
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