OBELA Analysis

he speed and effects of climate change create a crisis even more severe than the pandemic. The current trajectory of development has jeopardized the balance of the ecological system that supports it.

Due to the growing influence of humans on nature, biogeochemical cycles have been drastically altered and biodiversity has been reduced at a threatening rate. Causes include rising global temperatures. The Latin American and Caribbean region is mainly affected by climate change.

As a result of the pandemic, industrial activities, the number of flights and mass events have been reduced, resulting in positive but temporary impacts on the environment; however, there have also been other negative impacts such as the increased use of single-use plastics and the expansion of household and hospital waste.

The pandemic brings to the table the complex interaction between the systems of planet Earth and the current structure of social, economic and environmental policies.

The end of the year is approaching and the health and economic crises are still far from being resolved.  In the last report of the World Economic Outlook, the IMF re-estimated that the world economy will contract -4.4%, a correction of -1.03% with respect to the June forecast.

In almost all cases, a rebound in its growth rate is expected by 2021. This optimism forgets that several economies were dragging a downward trend in their growth rate, especially the advanced and larger economies.

With Trump's departure, how much does the U.S. and global outlook really change? For the world, what is the real space for transformation to Trump's balances, and for Latin America, what does this scenario represent for its economic and political relations?

The stoppage of economic activities, caused by the covid1 pandemic, seriously affected Latin American economies during the first semester of 2020, 8 years of production were lost.

On average, Latin America lost eight years of production, while China lost only one, the United States six and the European Union 11. China, Europe, Argentina, Colombia, Bolivia, Ecuador, El Salvador, Honduras, Paraguay, Peru and the Dominican Republic imposed mandatory quarantine.

The economic outcome of the infection prevention policies has been strongly determined by the economic growth of the last decade. When economic dynamics are low, the fall, driven by the closure of internal and external economic activities, causes a large contraction measured in terms of years of product. If the dynamics are high, a large fall leads only to a low reduction in production.