Longtime readers of my newsletter - or really anyone who looks at the title of my newsletter - will be unsurprised to learn that my writing is centered around Mexico. Today, however, I am going to broaden my horizons and talk about Latin America in general. I feel it is appropriate to do this because: a) Mexico is part of Latin America; and b) I feel like it.
Latin America in general
Actually, wait a minute. I'm not going to write about Latin America in general. I'm going to write about some very specific qualities of Latin America (of which Mexico is a part; see above). So, let's try this again:
Latin America in specific
But first, the entire world, in general. The world, for those of you who may not be paying attention, is generally in a bit of crisis. Or at least, it is undergoing some sea changes - and these changes are largely related to the fact of the earth's warming climate. Arable land is dwindling. Cleaner forms of energy are being sought after. And new materials (actually, old materials but in much greater supply) are needed to realize clean energy goals. And one place on earth stands alone in holding more of these things than anywhere else on the planet. You guessed it: Latin America.
Long the red-headed step child on the world stage, Latin America is becoming the darling of nations across the globe as they come to realize that more and more, the food humans and animals eat and the raw materials necessary to transition to clean energy are abundant in Latin America. Suddenly everyone wants to be Latin America's best friend. China figured this out first, and began courting Latin America in the early 2000s; China's investments in Latin America are enormous. The U.S. didn't figure this out until nearly 16 years after China did - but are now getting into the Latin America show big time (see my previous article here). And lastly, Europe has finally realized what they seem to have forgotten ever since loosing their colonial foothold in Latin America: there is gold in Latin America (so to speak).
Better than gold
Gold is great for making earrings, but it doesn't offer much value in transitioning the world to an electrified modality. For that, the world needs copper and lithium. Latin America contains more of these metals than anywhere else on earth, and they mine more of it than anyone else. This alone puts Latin American on a precipice of huge financial windfalls as Asia, the U.S. and Europe go on a battery-making buying spree.
Green with envy
Quick: which world region has the "greenest" energy? New Zealand? Europe? Nope. It's Latin America. More than 60% of Latin America is powered by green energy (Costa Rica is sort of an outlier, however - they are powered by a mere 100% renewable energy). The world's energy industries literally drool at the mere mention of "Latin America", as they look to the region to be the potential number one supplier of green hydrogen - a commodity that Latin America is uniquely positioned to generate through it's prodigious wind and solar power facilities. Billions are being poured into green hydrogen projects throughout the region. And, yes, even New Zealand is putting its money where Latin America's mouth is.
Heck, even filthy old crude oil is cleaner in Latin America - where oil production tends to emit 20% less CO2 than what the rest of the world averages.
You had me at "coffee"
Where will the world's growing population get its food stuffs as the earth warms and the rivers run dry? Increasingly, Latin America seems to be the answer. Latin America holds about a quarter of the world's arable lands, and a full third(!!!) of its fresh water. Already the world's largest producer of tuna, shrimp, sugar, bananas, pineapples and coffee - Latin America is positioned to be - by far - the largest producer of food in the world, especially as its huge swaths of currently un-farmed arable lands begin to be converted into fields of fruits and vegetables.
Show me the money
As a region, Latin America is more democratic than Asia. Democracy has flourished in Latin America, and one result of their progressive politics is their banking system. Central banks in Latin America tend to be remarkably stable: many Latin American countries - with Mexico being a prime example - have managed to create central banks that are immune to the vagaries of changing administrations in their executive and legislative branches of government. Latin America's central banks are performing at a level that make them the envy of wealthier nations such as those in the EU and the United States. This makes Latin America an even more compelling region for foreign investment: stable currencies and low inflation amount to a safe bet for investors who are tiring of the "wealthy" world's political and financial messes.
As the world teeters on the edge of failing democracies, failing financial systems, and failing crops - Latin America is emerging as the colossus to whom the world will turn for the sustenance and energy to move forward. My advice for kids in school today: learn Spanish.
This was very eye-opening! And heart warming, as added to the benefits of Latin America in my opinion, is the culture. My experience of Latin American culture is it being very warm and community oriented. I think the more we consider taking care of our neighbors and valuing community versus thinking primarily as an individual and valuing the idea of getting ahead of everyone else, the better we will fair and be positioned to solve climate challenges. Time to take a deeper look into Latin America!
I'm already learning Spanish, how great! There are so many things that I culturally align with more in Latin America than in Los Estados Unidos, and I'm glad to see more balance coming into the world. Here's hoping it's in time for that balance to be meaningful! New Zealand is over 80% renewable energy, so between most of Latin American and Costa Rica (well behind the amazing 100% there!!! fun new fact for me)!