Positive vibes: six messages that show progress at LATAM

Reading about Latin America in the news can be hard to stomach. From economic crises and political upheaval to environmental disasters and violent crime, the region is portrayed by the media as a bountiful source of the outrageous, the sad, and the exotically violent.

But there is enough good news in Latin America to go around. It is just a matter of collecting it all and presenting it for what it is: signs of improvement in a region that has long struggled for peace and prosperity for its people.

Below are six relatively recent news stories that show how things are improving in specific Latin American and Caribbean countries or across the region. From positive environmental and technology stories to economic and financial victories, it’s clear that not all is bleak and chaotic in the southern half of the Americas.

Deforestation in Colombian Amazon reaches record low

Colombian Ministry of Environment recently informed that deforestation in the Amazonian part of the country has reached its lowest level in history.

Deforestation fell by 36% in 2023 compared to the previous year. This means that the area affected by deforestation fell more than ever before in a year (from 477 square miles in 2022 to 305 square miles in 2023).

Colombia’s government — led by President Gustavo Petro — has made clear its goal is to protect the Amazon rainforest from deforestation, which is usually caused by illegal logging. While the country’s environment minister acknowledged there is still work to be done, he called the low deforestation rates in 2023 “very good news.”

Colombia is not the only country that is halting deforestation. Brazilian environmental authorities have reported that deforestation in their segment of the Amazon halved in 2023which is the lowest result in the country in the last five years.

The Amazon rainforest is by far the largest and most biodiverse tropical forest in the world. It is estimated that that 10% of species on Earth and 20% of the Earth’s freshwater resources are located in the Amazon.

Foreign direct investment continues to outpace Mexico

So far, it has not been possible to stop foreign investors from sending their capital to Mexico.

The country’s Economic Secretariat reported that foreign direct investment (FDI) exceeded $31 billion in the first half of 2024. This figure represents a 7% increase compared to the first half of 2023, more than tripling the volume of foreign direct investment registered during this period just a decade ago and achieving a new historic record for foreign investment in the country.

Record FDI volumes have become almost routine for Mexico over the past 10 years. A mix of geopolitical disputes between China and the US, a recent history of supply chain crises, a renewed trade agreement with Canada and the US, growing interest from Chinese investors and much buzz around nearshoring have made Mexico the most convenient entry point into the North American market.

Even President Andrés Manuel López Obrador’s reputation as an investor scarecrow hasn’t stopped global companies from flocking to Mexico in search of opportunity. Similar concerns surround López Obrador’s successor, Claudia Sheinbaum, but if Mexico’s FDI dynamics are anything like those of the past decade, the money will keep flowing.

Jamaican Finance Minister Talks with IMF Deputy

Jamaican Finance Minister Nigel Clarke is leaving the island to become one of three deputies at the International Monetary Fund (IMF).

Clarke was officially nominated by IMF Managing Director Kristalina Georgieva, who will replace current Deputy Director Antoinette Sayeh, who will step down in September. Clarke will assume her role until 31 October.

Clarke will be the first Jamaican to hold such a senior position at the IMF. During his tenure as finance minister, he established a reputation as an effective crisis manager and financial reformer. He spearheaded the independence of the Central Bank of Jamaica, the creation of an independent fiscal commission, a revamped tax policy and changes to the management of public investment. He was also responsible for guiding Jamaica’s economic policy during the COVID-19 pandemic.

While Clarke’s appointment may not necessarily translate into direct economic or financial benefits for Jamaica, he could bring much-needed visibility to the island under the IMF program. As Jamaican Prime Minister Andrew Holness has said, “it is a win-win for Jamaica and the Caribbean region to have one of our own serving in such a prominent global position.”

Record number of tourists return to El Salvador

Just five years ago, El Salvador was known as one of the most violent countries in the world. Now, it is rebuilding its reputation as a hotspot for tourism and investment.

Over 3.4 million foreign tourists visited El Salvador in 2023, according to data from the country’s central bank. The figure is a historic high for El Salvador.

The resurgence of tourism in El Salvador is a complicated phenomenon, largely attributed to the security policies of President Nayib Bukele. While controversial due to their heavy-handed approach, the change in the country’s security profile – especially in the eyes of foreigners – is undeniable.

Beyond its security policy, El Salvador’s government is also betting big on its tech industry. The country made headlines years ago by making bitcoin legal tender, making it a favorite among crypto cowboys in America and drawing the attention of other tech entrepreneurs.

The best programmer in the world is a young Chilean student

The best programmer in the world is only 23 years old and comes from Chile.

Martin Andrighetti won the latest edition of CodeVita, a global competition for young software developers sponsored and organized by Indian technology services giant TCS. Andrighetti – who has less than a year left to complete a computer science degree at Chile’s Pontificia Universidad Católica – beat 25 other programmers from different parts of the world in the grand finale of the competition.

CodeVita is primarily a showcase for young software developers from each participating country. The fact that a Chilean student won – and other Chilean nationals came in second – underscores the country’s credentials in technical education.

Chile is known among nearshore enthusiasts as a good place for highly specialized technicians. It is one of the few Latin American countries with respected R&D programs and a productive knowledge ecosystem. Andrighetti adds credibility to the country’s reputation and could fuel growing interest from foreign investors in Latin American technology.

Technology is driving the green revolution in LATAM

Latin America, for decades considered a technological backwater, is now taking action on a critically important technological battlefield: green innovation.

Latin America has become a fertile ground for green tech startups. Every year, local and international media showcase the creativity and ingenuity of an increasing number of young, green entrepreneurs in Latin America. With the latest update AI technologyit looks like the development of eco-tech startups in this region will be even more fruitful.

And it’s not just industry. Several governments in the region appear to be taking climate goals seriously. From Colombia’s pledge to eliminate its oil industry, to Chile’s betting on lithium batteries and other renewable energy sources, to Mexico’s recent pledge to switch to greener energy sources, the way of thinking is changing in the lower half of the continent.