Politics and economics, the two branches that rule the world. Everything in this world relates to politics and/or economics. Every time we touch upon the matter, there is a certain North American country that arises: the United States of America. This nation has power- in one way or another- in manipulating emerging countries- of course, in hand with entities like the World Bank- to do what they consider “prudent”.

Oh all mighty United States of America. This is what nations would say, when they see the United States, but the truth that there is to say it, is it truly all mighty? The answer is ambiguous and it is of course related to the point of view you have of the world. Certainly, I don’t think this way.

It is crucial to understand that the United States has become a country of miserable criminals, corrupted by greed. Financial Americans, have ruled in politics over centuries creating laws that obviously have been in their favor. I mean, that have deregulate the United States, so that financial institutions are able transfers capital all of over the world, without any eyes looking at what they do. These entities have made frauds, by buying insurance will give them profit if the loans they are to give are not being pay. Guess what the American financial institutions decided to do: give the American population hopes by granting them loans they will not be able to pay, creating credits.

This example above is one internal (U.S.A) example of why their mightiness, is not real.

Although there is a way it may be arguable they are all mighty, but the perspective is narrow. Emerging economies, believe they need the economic support from the United States, which my United States in this context. I refer to the American Private Multinational Corporations that enter emerging economies offering their products at very low cost, lower than the competing prices from the local products, ruining the economies in different areas of the world.

An example arises from the intervention of American external investment in local economies: Latin America. Where the economy is being deteriorated but the population is refusing to compromise their economy

Latin America, is a region were economical dependency on the United States is evident. Various countries, like Bolivia, Colombia, Costa Rica, and El Salvador have economies that have local production, yet the multinational corporations –in this case the American multinational corporations- entering these emerging economies, are willing and able to produce and sell at very low prices. Then the question is, how? Well the answer is: subsidies that are given by the government to these multinational corporations, devastating the local economy. The local producers in the emerging economies can’t produce at low cost due to the lack of government assistance. What has to be understood is that these economies are not able to sustain these foreign investment. It is ridiculous to have stable economies, enter unstable economies.

The question that should be asked to the governments is: Why would an unstable economy let foreigners enter an emerging nation’s economic panorama?

The Latin American culture is revolutionary as seen through history. Once again revolution occurs when the local economies are forgotten due to the foreign investment. They are forgotten by one reason: corruption. Most corrupted politicians when signing international contract, can easily make agreements to have some of the countries’ income go to their own personal budget. Two examples come to mind are Colombia and Bolivia. These two emerging economies are victims of the American multinational corporations, yet its people are not willing render themselves to these corporations.

In the case of Colombia, foreign investment is been partly the base of our economy and the government’s main focus. As a result, the government is ignoring the local economy bringing vast gaps of inequality, as many of the local products can’t compete with foreign products. Farmers from various areas are bringing their selling price to a production price, which does not generate any income for them, ruining the local agricultural market and making them poorer than when they started. This means that there is no economic regulation for foreign investment, translating: easier money to put in a Politian’s pocket. Looking at the other side of the story, the Colombian government is put into a hard situation. If the government refuses to comply with the various recommendations from United States, then technology in weapons and other implements of destruction will be lost.

Bolivia privatized a basic need: water. This privatization increased the price of water, so the low-income population was not able to afford this basic need. Anticipating their fatal waterless destiny, they decided it was enough. Bolivians gathered to protest for water. They paralyzed the country, paralyzing the economy. The government had to make water accessible once again. But the other side of the coin has to be seen as well. Bolivia has a very high public debt therefore they are not flexible when economical decisions come to play. The World Bank often pressures emerging nations to pay their debts, and suggest certain negotiations to countries. This water privatization was the case of a suggestion of World Bank, which would increment the economies GDP, and facilitate the debt’s payment. The government has no choice when they are bullied by superior organizations. This is why leaders like president Evo Morales arises, where they terminate foreign investment and promote the local production so economies are not bullied.

In economics there is not the celestial path that will lead nations into paradise. No. Every economy is different and no economy is to be treated the same. Regulation should be a must in every economy, as it is implied in the article, because not that is the path to salvation but it is a way to prevent corruption in the financial and in socioeconomic /political sectors -which could save nations from crisis. It is important for nations to realize that these foreign investments are acceptable if the nation’s economy is stable, regulated, and is able to compete with multinational corporations. Emerging economies are clearly not prepared to receive them leading them to socioeconomic problems, evident in Colombia and Bolivia. I hope that the beginning of a regulating era in economics will come soon.