SSWG7E Analyze the impact of natural disasters and political instability on economic activity in Latin America

Natural Disasters in Latin America

Natural Disasters The effect of a natural hazard that affects the environment, and leads to financial, environmental and/or human losses.

Earthquakes Caused by the tectonic plates colliding. – Lead to fires, building collapses and tsunamis Measured by a seismograph Classified by the Richter scale Occur at fault line, near volcanoes and around the Ring of Fire

Chilean Earthquake, 1960 Largest recorded earthquake measured 9.5 on the Richter scale in Chile on May 22, 1960 Led the Chile improving their infrastructure to withstand high magnitude earthquakes

Haitian Earthquake, M earthquake in January 2010 followed by 52 aftershocks Left 1 million people homeless and 530,000 dead or injured Haiti’s poor infrastructure caused much of the damage and death

El Nino A warm ocean current that flows off the west coast of South America every few years – Changes weather patterns around the world Causes extreme weather like floods, droughts and other weather disturbances – Developing countries dependent on agriculture and fishing are most affected

Hurricanes Storm that forms over warm, tropical ocean waters Produce powerful winds, torrential rain, high waves and storm surges Storms start out off the coast of Africa in the Atlantic Ocean and move west toward the Gulf of Mexico and the Caribbean Sea

Economic Impact Clean up jobs increase. Paying for assistance Damages infrastructure Destroys buildings Financial aid Trade halted/stopped

Political instability

What is Political Instability is the likelihood of having demonstrations, forms of violence, workers going on strike or the possibility of a coup d'état. It is also measured in terms of whether the government may collapse or not.

Causes Conflict between rival parties Insufficient resources Ethnic struggles Rights being restricted Corrupt government Conflict with other countries Revolts

Effects on economy Shortens policies Frequent switch of policies Inflation reduces investment

Latin American 3rd largest unstable region of the world. Argentina, Ecuador, Cuba, Nicaragua, Venezuela United States and other Western Powers have not helped.

Questions How is economic activity in countries impacted by natural disasters and political instability, especially Latin American countries?

Answer Go into debt asking other countries for help. Political unrest. Natural resources not being utilized properly. Shortens policies, causes inflation, reduces investment due to uncertainty. Disrupts trade due to damage to infrastructure.

Latin American Country project Countries to choose from: – Venezuela – Cuba – Colombia – Brazil – Haiti – Argentina – Ecuador – Mexico – Peru – Dominican Republic