by Paul Lines

Created on: February 15, 2008

The political landscape of Latin America is changing. One only has to look at the results of the presidency elections that took place between late 2005 and the end of 2006 to see that this is the case. In twelve Latin American countries, including Venezuela and Nicaragua, the election results have shown that neo-liberalism and dictatorial regimes are giving way to a new socialist agenda in the region. Shaking off the historical remnants of Spanish influence and the capitalist policies that have seen most of the regions populations beset by poverty for decades, the Latin American population is looking to socialism to bring about positive changes in their countries and communities.

Looking forward into this century there is no doubt that, if this new movement of socialism continues, it will have a significant impact upon the region. Perhaps the most important of these is the changing of the relationship between Latin America and the US. During the best part of the past century, South America has been heavily reliant upon the US in areas such as trade, foreign investment and, to a certain extent, security and defence. This suited Washington as they were in need of the rich natural resources that were prevalent in Latin America, such as petroleum.

Currently, predominantly under the direction of President Cheraz of Venezuela, there is a gathering momentum for independence from the US. Chevaz, and other socialist leaders from Latin America are already forging links with countries like China and the Middle East states in an effort to consolidate and expand this independent movement. This process will have two main consequences for the region. Firstly, it will provide a greater marketplace for Latin America's economic growth, both in terms of natural resources and manufactured goods. Similarly, it will provide the South American countries with direct access to goods and services from these new-formed alliances, as well as the opportunity for Foreign Direct Investment, separate from that provided by the US.

Economically, these moves should benefit the GDP of the Latin American countries. For example, the goods and services imported from areas like China are likely to cost less than those same products produced in the US. In addition, China and India have a wealth of Technological expertise, which would help South American countries to further improve their economic infrastructure.

Another economic effect that the expansion of international cooperation could have upon the

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